Citibank N.A. has agreed to pay $38.7 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs), the Securities and Exchange Commission (SEC) reports. ADRs are the U.S. securities that represent foreign shares of a foreign company, and they “require a corresponding number of foreign shares to be held in custody at… Read More >>
Key Swaps Rules Get SEC Spotlight
Amid the stampede to emerging and disruptive technologies, a few more Earthly matters must be resolved within the realm of securities operations. One of those matters is the final resolution of the SEC’s proposed rules and amendments that govern capital, margining, and segregation requirements for securities-based swaps. These guidelines are important to “security-based swap dealers… Read More >>
Credit Suisse Settles RES Charges with SEC & NYAG
The SEC reports that Credit Suisse Securities (USA) LLC will pay $10 million to settle charges, brought collaboratively by the SEC and the Office of the New York Attorney General (NYAG), alleging “material misrepresentations and omissions made in connection with its now-closed Retail Execution Services (RES) business’ handling of certain customer orders.” “Credit Suisse’s RES… Read More >>
Cowen Execution Services Settles Blue Sheet Data Case
New York-based Convergex Execution Solutions LLC, the broker-dealer now known as Cowen Execution Services LLC, will pay $2.75 million to settle charges that it failed to provide the SEC with “true and complete” securities trading information in its electronic blue sheet, or EBS, data-file submissions. Convergex admitted to the findings in a recent SEC order… Read More >>
Regulators Extend Comment Deadline for New Volcker Rule
Five Regulators Move Volcker Rule Deadline to Oct. 17 Securities industry participants will get more time to weigh in on the very controversial Dodd-Frank Era “Volcker Rule,” which in its initial form prohibits proprietary trading and banks from owning hedge funds or private equity funds. Five federal financial regulatory agencies have agreed to extend until… Read More >>
Moody’s Settles Charges of Inadequate Internal Controls
Moody’s Investors Service Inc. will be paying $16.25 million in penalties to the SEC via two regulatory orders that resolve charges that the credit rating agency had inadequate internal controls that ultimately led to 650 incorrect residential mortgage-backed securities (RMBS) ratings, representing a notional value of more than $49 billion. The Moody’s case “marks the… Read More >>
How Three Traders Allegedly Caused $81M in Losses
The SEC reports that Citigroup recently agreed to pay $10.5 million in penalties to settle charges involving its books and records, its internal accounting controls, and its trader supervision. Citigroup Inc. and its U.S. broker-dealer subsidiary, Citigroup Global Markets Inc. (CGMI), also will pay a $5.75 million penalty to settle the inaccurate books and records… Read More >>
Legg Mason Settles SEC Bribery Case for $34M
Asset manager Legg Mason Inc. will pay more than $34 million to settle the SEC allegations that the firm engaged in a bribery scheme via government officials in Libya that was in clear violation of the Foreign Corrupt Practices Act (FCPA). Legg Mason is charged with violating “the internal accounting controls provision of the Securities… Read More >>
Time for a Crypto Cop?
Many people have been wondering when the controversial crypto currency phenomenon will get the regulatory oversight needed to provide safeguards for investors and other participants. In the U.S., the SEC and CFTC are pursuing guidelines and enforcement actions as the crypto efforts move full speed ahead. I’m certain that the regulators would appreciate additional help… Read More >>
Citigroup Pays $10.5M to Resolve Rogue Traders Case
The Securities and Exchange Commission (SEC) reports that Citigroup has agreed to pay $10.5 million in penalties to settle two enforcement actions involving its books and records, its internal accounting controls, and its trader supervision. The charges stem from $81 million in losses due to trader mismarking and unauthorized proprietary trading, and $475 million in… Read More >>
