The Financial Industry Regulatory Authority on Tuesday said it ordered Morgan Stanley to pay $800,000 for failing to tell conflicts of interests in thousands of stock-research reports since 2006. The group said that Morgan Stanley & Co., a subsidiary of the investment bank, failed to tell accurate information about the firm’s relationships with those companies it covered in more than 6,500 equity research reports.
Posts Tagged ‘Wall Street’
Morgan Stanley Fined By FINRA Over Failure to Disclose
August 14th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Conflicts, Decade, Desire, Disclosures, Equity Research, Failure, Financial Industry Regulatory Authority, Finra, Household, Infractions, Investment Bank, Morgan Stanley, Morgan Stanley Co, Public Appearances, Relationships, Research Analysts, Research Recommendations, Stock Research, Subsidiary, Wall Street 
Comments OffCiti to Settle With SEC for $75 Million
July 29th, 2010 Before You Invest Citigroup will pay U.S. regulators $75 million to settle charges that it failed to tell $40 billion in subprime exposure to investors in 2007, the Wall Street Journal reported on Thursday.Under Citigroup’s settlement, the Securities and Exchange Commission will charge the bank with material omission of disclosure requirements, but not with fraud, the newspaper said, citing people familiar with the matter.The SEC is expected to indicate that Citigroup did not intentionally mislead investors, according to the report.Citigroup failed to tell its subprime exposure in the second and third quarters of 2007, according to the settlement, the Journal reported.
Posted in Finance Fraud Tags: Citi, Citigroup, Disclosure Requirements, Fraud, Investors, Omission, People, Quarters, Regulators, Sec, Securities And Exchange, Securities And Exchange Commission, Wall Street, Wall Street Journal Comments OffFinancial Overhaul Signed Into Law
July 21st, 2010 Before You Invest Reveling in victory, President Barack Obama on Wednesday signed into law the most sweeping reform of financial regulations since the Fantastic Depression, a package that aims to protect consumers and ensure economic stability from Main Street to Wall Street.The law, pushed through mainly by Democrats in Washington’s deeply partisan environment, comes nearly two years after the infamous near financial meltdown in 2008 in the United States that was felt around the globe. The legislation gives the government new powers to break up companies that threaten the economy, makes a new agency to guard consumers in their financial transactions and puts more light on the financial markets that escaped the oversight of regulators.Obama described them all as commonsense reforms that will help people in their daily life — signing contracts, understanding fees, understanding risks.He went so far as to call the reforms “the strongest consumer protections in history.” The president added to a burst of applause: “Because of this law, the American people will never again be questioned to foot the bill for Wall Street’s mistakes.”
Posted in Finance Fraud Tags: Applause, Barack Obama, Burst, Consumer Protections, Consumers, Contracts, Democrats, Economic Stability, Economy, Financial Markets, Financial Meltdown, Financial Transactions, Globe, Great Depression, Legislation, Oversight, Regulators, United States, Victory, Wall Street Comments OffGoldman Sachs reports lower second-quarter earnings
July 20th, 2010 Before You Invest Goldman Sachs shares tumbled in pre-market trading after the company reported earnings that beat Wall Street views, but revenue came in shy of what analysts had been expecting.The financial giant said its net income was 78 cents a share in its second quarter, compared with $4.93 a share this time last year.Excluding one-time items, Goldman earned $2.75 a share, topping analysts’ estimates.Sales for the most recent quarter reached $8.84 billion, down from $13.76 billion in the same period last year.Analysts who follow the company projected Goldman Sachs to earn $2.08 a share on revenue of $8.94 billion.Last week Goldman resolved a major headache by paying $550 million to settle the SEC case. The fraud charges stemmed from Goldman’s marketing and packaging of the Abacus collateralized debt obligation.Weakness in its trading and investment banking divisions also weighed on earnings.Goldman said earnings were also impacted by a $600 million expense related to the UK tax.”It’s a pretty significant slowdown in their overall business: Investment banking revenue was down 36 percent year over year, and fixed income, currency, and commodity trading was down 35 percent,” said Walter Todd, portfolio manager at Greenwood Capital Associates.
Posted in Finance Fraud Tags: Business Investment, Collateralized Debt Obligation, Commodity Trading, Currency, Estimates, Fixed Income, Fraud Charges, Giant, Goldman Sachs, Headache, Investment Banking, Marketing, Net Income, Portfolio Manager, Pre Market, Second Quarter Earnings, Shares, Slowdown, Wall Street Comments OffGoldman Settles With SEC
July 16th, 2010 Before You Invest “Today’s settlement sends positive message of deterrence and accountability,” said the SEC’s director of enforcement, Robert Khuzami.Goldman Sachs agreed to pay $550 million to settle civil charges that it duped clients by selling mortgage securities that were secretly designed by a hedge-fund firm to cash in on the housing market’s collapse.Goldman agreed to pay $550 million to resolve allegations that the company misled investors who bought subprime mortgage-related securities made by Goldman.
Posted in Finance Fraud Tags: Accountability, Allegations, Civil Charges, Collapse, Columbia University, Concession, Defendant, Deterrence, Disclosure, Goldman Sachs, Hedge Fund, Housing Market, John Coffee, Law Professor, Marketing Materials, Mortgage Securities, Robert Khuzami, Securities Law, Wall Street, Wrongdoing Comments OffCiti to raise $3bn for PE and hedge units
June 18th, 2010 Before You Invest Source: AltAssetsUS financial services conglomerate Citigroup is plotting to raise over $3bn for its private equity and hedge funds, according to Bloomberg.In spite of looming US regulations that may prohibit banks from dealing in alternative investment asset classes, Citi may seek to raise $1.5bn for private equity and $750m for hedge funds this year.
Posted in Finance Fraud Tags: 750m, Alternative Investment, Alternative Investments, Asset Classes, Breathing Space, Capital Advisors, Citigroup, Commodities, Conglomerate, Hedge Fund Of Funds, Hedge Funds, Investment Asset, Management Teams, Private Equity, Regulators, Senate Bills, Six Years, Spite, Stocks Bonds, Wall Street Comments OffCME will not cancel any trades after Thursday’s market gyrations
May 8th, 2010 Before You Invest (AP) — CME Group Inc., which operates the Chicago Mercantile Exchange and the Chicago Board of Trade, said its markets functioned properly on Thursday during Wall Street’s wild swing, and that it was not canceling any trades.The company said it saw “significant market activity due to global macroeconomic conditions” on Thursday.Some trades on Nasdaq and the New York Stock Exchange’s electronic platform were canceled.But CME Group spokeswoman Anita Liskey said on Friday that none of Thursday’s trades would be canceled, because there were no abnormalities on its exchanges.”It does not appear that CME Group clearing firms or customers experienced any significant technological failures or trading errors during this timeframe” of 1 to 2 p.m. CDT, when the market was going through its swings.CME said all of its clearing members remain in excellent standing and have met their financial obligations to the CME Clearing House.
Posted in Finance Fraud Tags: Anita, Cdt, Chicago Board Of Trade, Chicago Mercantile Exchange, Clearing House, Electronic Platform, Financial Obligations, Liskey, Macroeconomic Conditions, Market Gyrations, Nasdaq, New York Stock, New York Stock Exchange, S Market, Spokeswoman, Swings, Technological Failures, Timeframe, Wall Street, York Stock Exchange Comments OffSEC voiced concern about CDOs as early as 2006, records show
May 6th, 2010 Before You Invest he Securities and Exchange Commission started questioning Wall Street’s practice of packaging mortgages into bonds as early as 2006, according to recently released documents. SEC officials wrote that collateralized debt obligations linked to mortgages exposed financial institutions to possible write-downs. “This risk is hard to measure and hence to manage,” according to a memo dated Feb.
Posted in Finance Fraud Tags: Amp, Bear Stearns, Bonds, Collapse, Collateralized Debt Obligations, Early Show, Financial Crisis, Financial Institutions, Inquiry Commission, Mortgages, Pid, Risk, Sec Officials, Securities And Exchange, Securities And Exchange Commission, Sid, Wall Street Comments OffA trio of bank failures in Puerto Rico and three more closures in Michigan and Missouri raises the number of U.S. bank failures this year to 63
May 1st, 2010 Before You Invest (MarketWatch) — A trio of bank failures in Puerto Rico and three more closures in Michigan and Missouri took a nearly $6 billion bite out of the federal deposit-insurance fund on Friday, while raising the number of U.S. bank failures this year to 63.The Federal Deposit Insurance Corp.
Posted in Finance Fraud Tags: 1990s, Bancorp, Bank Failures, Champion, Closure, Deposit Insurance Fund, Eurobank, Fdic, Federal Deposit Insurance, Federal Deposit Insurance Corp, Michigan Bank, National Banks, Port Huron, Premier Bank, Savings And Loan, Savings And Loan Crisis, U S Bank, Wall Street, Wall Street Journal, Westernbank Comments OffMorgan Stanley pays $14 million oil-trading fine
April 29th, 2010 Before You Invest WASHINGTON — In another black eye for Wall Street, the Commodity Futures Trading Commission late Thursday announced a $14 million fine against Morgan Stanley Capital Group Inc. to settle accusations of hiding its complex oil trades.The settlement, in which Morgan Stanley did not admit or deny the accusations, comes as oil prices have continued their steady upwards march and have some oil analysts again saying that excessive speculation is again pushing up energy prices.
Posted in Finance Fraud Tags: Accusations, Article Synopsis, Black Eye, Capital Group Inc, Cftc, Commodity Futures Trading Commission, Commodity Trading, Counterpart, Energy Prices, Excessive Speculation, Futures Trading Commission, Morgan Stanley, Morgan Stanley Capital, New Attitude, Oil Prices, Oil Trading, Ubs, Ubs Securities, Upwards, Wall Street Comments Off
