Stock Market Typo/Robot Apocalypse Still Being Investigated

Stock Market Typo/Robot Apocalypse Still Being Investigated

Treasury Secretary Tim Geithner will meet with federal regulators and top officials from the NYSE and other exchanges to dicuss whatever the hell happened last Thursday that caused the stock market to completely freak out. [More]

Wall Street's Biggest Drop Ever Caused By Typo?

Wall Street's Biggest Drop Ever Caused By Typo?

The AP says that a computerized selloff that may have been caused by a typo (the theory is that someone typed $16 billion when they meant $16 million) caused the biggest ever drop during a trading day. How could one typo result in such massive turmoil? The idea is that the erroneous trade triggered other computers to sell. [More]

Goldman Riskier Than Citigroup

Goldman Riskier Than Citigroup

Bond markets slammed Goldman Sach this week, making the firm pay more for cashizzle then even the bailed-out Citigroup. Goldman’s yield rose to 2.79 percentage points over Citigroups’ 2.29. At the end of March, before the legal and regulatory headaches began, Citigrouop’s spread was wider than Goldman’s by .45 percentage points. Higher yields on debt usually indicate a higher risk of default or other negative credit events. Concerns continue to mount over how long and how deep the firm will be tainted by the SEC’s civil lawsuit and the investigation by federal prosecutors, and what other skeletons the scrutiny might shake out.

Blankfein’s Bonds Are Riskier Bet Than Pandit’s: Credit Markets [Bloomberg]

SEC Porn Aficionados Have Not Been Fired

SEC Porn Aficionados Have Not Been Fired

The Washington Post is reporting that the porn-lovin’ employees of the SEC have not been fired. Here’s the breakdown: [More]

Did Paulson Violate The Fair Credit Reporting Act?

Did Paulson Violate The Fair Credit Reporting Act?

When the SEC announced its fraud complaint against Goldman Sachs, people noted that the penalties involved would involve money, not jail time. But an attorney writing for seekingalpha.com argued over the weekend that John Paulson, the hedge fund manager who worked with GS to create “synthetic derivatives,” accessed FICO scores to create his financial product and therefore violated the Fair Credit Reporting Act (FCRA)–which could mean a penalty as high as $1 billion, and even jail time if the FTC or Justice Department decides to go after him. [More]

10 Things You Don't Know About The Goldman Sachs Case

10 Things You Don't Know About The Goldman Sachs Case

The media spin cycle is churning out its typically tepid hogwash about the SEC’s suit against Goldman Sachs. The Big Picture skewers 10 myths about the case and gets to the heart of the matter: Goldman is screwed. Here’s why: [More]

Miami Businessman Charged With Running $900 Million Ponzi Scheme

Miami Businessman Charged With Running $900 Million Ponzi Scheme

It’s not exactly Bernie Madoff’s $65 billion, but the Securities And Exchange Commission has charged a Florida businessman with operating a $900 million Ponzi scheme, telling people they were investing — risk-free and at interest rates upward of 26% — in his grocery business, when in fact he was just using the money to fund his lavish lifestyle. [More]

SEC Wants Disclosures For Asset Backed Securities Written In Python

SEC Wants Disclosures For Asset Backed Securities Written In Python

“Waterfall” provisions of asset backed securities are the rules that explain the flow of funds in the transaction, and they are are very hard to read. Blogger/professor Jayanth Varma calls them “horrendously complicated,” leading trustees to make mistakes or pull stunts that investors never expected. To remedy this, the SEC is proposing that the provisions be written in a programming language, filed on EDGAR, and made available as downloadable Python source code. [More]

SEC Charges Goldman Sachs With Fraud

SEC Charges Goldman Sachs With Fraud

The SEC today announced civil fraud charges against Goldman Sachs and VP Fabrice Tourre. The chargea allege that Goldman ripped off investors by allowing a client who bet against the housing market to pick the mortgage securities being sold to other investors who were also investing in the housing market. [More]

SEC Sues Psychic For Not Actually Being Able To See
Future

SEC Sues Psychic For Not Actually Being Able To See Future

On his personal website, “natural psychic and Remote Viewer” Sean David Morton claims to have predicted everything from the 1989 San Francisco earthquake to Bill Clinton’s impeachment to the burst of the dotcom bubble. But that doesn’t impress the SEC, who filed a lawsuit against Morton yesterday, alleging that he committed $6 million worth of securities fraud by claiming he could see into the future. [More]

Judge In Bank Of America Case Calls Settlement "Half-Baked Justice"

Judge In Bank Of America Case Calls Settlement "Half-Baked Justice"

A U.S. District Court Judge signed off on the $150 million settlement between Bank of America Corp. and the Securities and Exchange Commission over allegations of making misleading statements during BofA’s purchase of Merrill Lynch & Co., but he wasn’t exactly happy about doing it. [More]

Inspector General Admits SEC Pretty Much Sucks At Its Job

Inspector General Admits SEC Pretty Much Sucks At Its Job

The SEC’s inspector general has released a jailhouse interview in which his royal Ponziness, Bernie Madoff himself, explains that he got away with his scheme because the SEC basically sucks.

Bank Of America Board Members Subpoenaed

Bank Of America Board Members Subpoenaed

New York Attorney General Andrew Cuomo’s office is gathering information in order to file fraud charges against some BoA executives over what they knew, and what they hid, when they acquired Merrill Lynch & Co. a year ago. Earlier this week, his office subpoenaed 5 board members to find out “what they knew regarding the mounting losses and bonus payments at Merrill before the deal closed on Jan. 1 and what role they played in deciding whether to disclose that information to shareholders,” according to the Associated Press.

SEC: Countrywide CEO Called Mortgages "Toxic" Three Freaking Years Ago

SEC: Countrywide CEO Called Mortgages "Toxic" Three Freaking Years Ago

Today, as expected, is a crappy day for former Countrywide CEO and co-founder Angelo “Orangey Orangerton” Mozilo. The SEC is suing Mr. Mozilo along with several of his colleagues, claiming that they profited from stock sales while hiding information from investors.

Lawsuits: Countrywide Ex-CEO To Feel Wrath Of SEC

Lawsuits: Countrywide Ex-CEO To Feel Wrath Of SEC

His extreme orangeness, former CEO and founder of Countrywide Home Loans Angelo Mozilo, is about to be slapped with civil fraud charges, according to the Wall Street Journal.

New Consumer Agency May Steal SEC's Thunder

New Consumer Agency May Steal SEC's Thunder

After the bang-up job the Security and Exchange Commission did to prevent Wall Street shenanigans from plunging the economy into the abyss, the White House is looking to form a new commission to step in and do the SEC’s job.

Fund Stole From Clients, Got Lavished In Lap Dances

Fund Stole From Clients, Got Lavished In Lap Dances

The SEC is pawing through the records of the collapsed investment firm Sentinel Management Group and getting lap dance remains all over their hands. Bloomberg reports it looks like SMG’s lead trader Charles Mosley sold their clients what now amount to worthless securities (“wallpaper,” says the guy in charge of unwinding the company), and the brokers he bought them from showered him with tickets to sporting events, limousine rides, and even underwrote his lap dances. Musta been fun while it lasted.

Brooklyn Cab Driver Convinces You He Has A Hedge Fund, Steals $20 Million

Brooklyn Cab Driver Convinces You He Has A Hedge Fund, Steals $20 Million

Oh look, another Mini-Madoff! Meet Alan Fishman, 49, a livery cab driver from Brooklyn, NY who convinced people he was a hedge fund mastermind.