Posts Tagged ‘sec’

See ya later Gary.  After serving as Commodity Futures Trading Commission (CFTC) chairman since May of 2009, Gensler is leaving after his appointment ends in December.  Some have reported that the White House asked him to stay on a second term, but he declined.

Gensler presided over the implementation of Dodd-Frank, the 2010 bill that gave the CFTC regulatory authority over the derivatives market, partially shared with the Securities Exchange Commission (SEC) on security based “swaps.”  Gensler’s highest point came with the LIBOR interest rate scandal that garnered regulators with large fines from investment banks–0ver 200 million by the CFTC alone.

And the revolving door continues.  What do you think, will Gensler retire? Or move back to the private sector? Back to Goldman Sachs perhaps.

Gensler to Step Down as CFTC Chairman –

The U.S. Securities and Exchange Commission (SEC) announced short selling enforcement actions against 23 firms today, bringing 14.4 million in monetary fines. These firms apparently bought offered shares from an underwriter, broker dealer, or dealer in public offering after having shorted that same security during a “restricted period”

SEC Rule 105 of the Regulation M prohibits the short sale of an equity security during a restricted period (usually 5 days prior to a public offering).

JGP Global and Manikay Partners agreed to pay the most disgorgement of trading profits out of the 23 firms, 2.5M and 1.6M respectively.

The SEC is attempting to prevent short selling that can reduce offering proceeds by companies by depressing the market price shortly before the company prices it public offering. | SEC Charges 23 Firms With Short Selling Violations in Crackdown on Potential Manipulation in Advance of Stock Offerings.

The Mississippi Secretary of State’s Office filed an Amicus Curiae in support of a lawsuit against the U.S. Securities and Exchange Commission.  Several Mississippi investors have sued the SEC for failure to pay restitution in the Morgan Keegan settlement nearly two years ago.

In 2007-2008, Morgan Keegan misrepresented and overstated the value of certain mortgage backed investments during the housing collapse.  As a result, over 39,000 investors nationwide lost over $1-Billion.  Over 2,000 Mississippi investors lost more than $71 Million.

Secretary of State Delbert Hosemann says it’s inexcusable for the federal government to withhold Mississippi investors’ own money from them.  The press release below states the SEC hasn’t even come up with a plan to dispense the funds after nearly two years waiting.  The SEC also ignored a demand from Mississippi Attorney General Jim Hood to dispense the funds in April of this year.

Press Release

Hedge Fund Ad Ban Lifted

Author: Cory Ferraez

About time.  The Securities and Exchange Commission (SEC) voted today in a  4 to 1 decision in favor of lifting the advertising ban for hedge funds.  A move that was required by the JOBS Act passed last year.   The bill was “designed” to decrease funding hurdles for small businesses in the wake of a growing use of crowd-funding.   Hedge funds are restricted to investors that have a net worth of at least 1 million (excluding primary residence) or annual salary of 200,000 in previous two years–about 7.8% of Americans.

Have fun all you hedge funds out there, we expect to see some funny Superbowl commercials….

Thanks to Huffington Post for the article: Hedge Fund Ad Ban Lifted