KPMG: That’s Just the Way We Roll (Going Concern )
Going Concern | October 21, 2009
Up until now, the Big 4 was brushing off the Madoff suits, at least in public. In spite of PwC being named in 7 suits in Canada worth more than $2 billion, that story was not reported in any US mainstream media publications. But now we’re talking about a direct relationship between the auditors and Madoff.
Insider Trading Arrests Open a Window on Hedge Fund Culture (Time)
Time | October 20, 2009
While many hedge funds wouldn’t know what to do with inside information if they tripped over it-the strategy at quantitatively oriented shops often fixates on building better computer models-plenty of others ply their trade by working the phones, by calling up companies, as well as competitors, suppliers, customers and former employees, in an attempt to find out more than the next guy.
Galleon case a warning to corp dev leaders (The Deal)
The Deal | October 19, 2009
You could go to a lot of conferences on best practices in corporate development in recent years without hearing much about how to stay out of trouble with the Securities and Exchange Commission. That may change given that a couple of corporate executives involved in deals were among those charged by the SEC on Friday in connection with a major insider-trading case.
SEC, FINRA: New Wine In Old Bottles (Forbes)
Forbes | October 19, 2009
Recently, reporters have asked me a fairly simple question: Do you believe that any of the proposed regulatory reforms will work? If you’ve seen me answer that question on television, you likely noticed that I first took a deep breath, my eyes widened, a somewhat sad smile spread across my face, I exhaled, and then I answered, “No.” Why so negative? Let me point you to the biblical admonition: And no man putteth new wine into old bottles; else the new wine will burst the bottles, and be spilled, and the bottles shall perish. (Luke 5:37)
Should Insider Trading Be Legalized? (Minyanville)
Minyanville | October 19, 2009
The SEC has just about 1,100 people responsible for ferreting out and enforcing violations among this country’s more than 12,000 publicly traded companies, 10,000 investment advisers managing more than $38 trillion in assets, nearly 1,000 fund complexes, 6,000 broker-dealers with 172,000 branches, and the close to $44 trillion worth of trading conducted each year on America’s stock and option exchanges. Seems like an impossible task. In that case, why not just legalize insider trading? Amazingly enough, there are some who endorse this very idea.