Industry News

Goldman, Sachs & Co. fined $22M for supervisory failures

The Financial Industry Regulatory Authority (FINRA) today announced that it has fined Goldman, Sachs & Co. $22 million for failing to supervise equity research analyst communications with traders and clients and for failing to adequately monitor trading in advance of published research changes to detect and prevent possible information breaches by its research analysts.

Top JPMorgan banker quits after market abuse fine

One of London's most prominent bankers was fined 450,000 pounds ($720,000) for passing on inside information in a case that will embarrass his employer J.P. Morgan Cazenove and which marks a push by British regulators to target high-profile figures.

FSA Scolds Financial Firms for Lacking Anti-Bribery Controls

Despite a long-standing regulatory requirement to mitigate financial crime risk, most firms still have more work to do to implement effective anti-bribery and corruption systems and controls, according to a recent survey by the Financial Services Authority.

Coutts Fined $13.9 Million Over Money Laundering Failures

Coutts & Co., a private bank owned by Royal Bank of Scotland Plc, was fined 8.75 million pounds ($13.9 million) by the U.K. financial watchdog for failing to put in place effective money-laundering controls.

U.K. FSA Arrests Legal & General Employee in Trading Probe

A Legal & General Investment Management Ltd. employee was arrested in London and three premises were searched as part of the U.K. markets regulator’s highest-profile insider-trading investigation.

Former corporate broker at Merrill Lynch fined £350,000 for disclosing inside information

The Financial Services Authority (FSA) has fined Andrew Osborne, former Managing Director in Corporate Broking at Merrill Lynch International (now Bank of America Merrill Lynch International) £350,000, for engaging in market abuse by improperly disclosing inside information ahead of a significant equity fundraising by Punch Taverns Plc (Punch) in June 2009.

Former compliance officer at Greenlight Capital and JP Morgan Cazenove trader fined

The Financial Services Authority (FSA) has fined Alexander Ten-Holter, trader and former compliance officer at Greenlight Capital (UK) LLP (Greenlight) £130,000 for failing to question and make reasonable enquiries before selling Greenlight’s shareholding in Punch Taverns plc (Punch) ahead of an anticipated significant equity fundraising by Punch in June 2009, and prohibited him from performing Compliance Oversight and Money Laundering reporting functions.

Watchdog finally gets tough on 'rat traders'

After threatening for years to crack down on rogue traders, the mainland's securities watchdog is finally baring its teeth. Li Xuli, a former fund manager at Bank of Communications Schroder Fund Management, is under criminal investigation for "rat trading" - using inside information to trade using the brokerage accounts of relatives or friends - after a probe by the China Securities Regulatory Commission (CSRC).

FSA fines HSBC £10.5million for mis-selling products to elderly customers

The Financial Services Authority (FSA) has issued its largest ever retail fine of £10.5 million to HSBC because of inappropriate investment advice provided by one of its subsidiaries, NHFA Limited (NHFA) to elderly customers. HSBC estimates that the amount of compensation to be paid to NHFA customers will be approximately £29.3 million in addition to the fine.

Citigroup Said to Consider Replacing Japan Banking CEO as Regulators Probe

The head of Citibank Japan Ltd., Darren Buckley, may step down from the post as soon as this month as regulators prepare to punish the bank for the third time since 2004, said two people with knowledge of the situation.

FSA fines and bans hedge fund Compliance officer £14,000 for failing to act with due skill, care and diligence

The Financial Services Authority (FSA) has fined Dr Sandradee Joseph £14,000 and banned her from performing any significant influence function in regulated financial services for breaching Principle 6 of the FSA's Statements of Principle for Approved Persons.

Coutts fined £6.3m for failings relating to its sale of an AIG fund

The Financial Services Authority (FSA) has fined Coutts & Company (Coutts) £6.3m for failings in connection with the sale of the AIG Enhanced Variable Rate Fund (the Fund).

Singapore May Toughen Penalties for Money Laundering, Terrorism Financing

Singapore, where assets under management have risen fivefold to $1.2 trillion since 2001, will consider a "tougher penalty regime" and boost enforcement against money laundering and terrorist financing.

What makes a bank trader go rogue?

The traits banks tend to look for when hiring new traders are the very same ones likely to make them go rogue, industry insiders and psychologists say.

UK FSA Fines Credit Suisse GBP 5.95m for Private Banking Controls

The Financial Services Authority (FSA) has fined Credit Suisse (UK) Limited (Credit Suisse UK) £5.95 million for systems and controls failings in relation to sales by its private bank of structured capital at risk products (SCARPs).

Galleon Insider Sentencing Scorecard: Average Prison Term Tops 3 Years

Galleon Group LLC co-founder Raj Rajaratnam was sentenced yesterday to 11 years in prison for insider trading after being convicted by a jury in Manhattan federal court for directing the biggest insider-trading scheme in a generation.

Insider trading ends in jail term

The former investment director of Shanghai-based Everbright-Prameric Fund Management Co was yesterday sentenced to three years in jail with three years' reprieve for insider trading.

UBS: Rouge Trader Hit Firm

UBS AG said a rogue trader racked up as much as $2 billion in losses using the firm's own money, a dramatic admission that raised new questions about the ability of one of the world's largest banks to manage risk and global regulators' ability to monitor it.

HK court jails two former ICBC Asia staff for graft

A Hong Kong court sentenced two former ICBC (Asia) executives to jail on Wednesday for accepting bribes in exchange for helping a client apply for loans and extending repayment periods, Hong Kong's graft-buster said.

Ex-Mizuho Investment Banker Charged With Insider Trading in U.K.

Thomas Ammann, a former investment banker at Mizuho International Plc, and two women were charged with insider trading in shares of OCE NV (OCE), a Dutch printing- equipment maker.

Chris Ruffle Plans New China Fund After Leaving Martin Currie

Chris Ruffle, who co-managed the best emerging market hedge fund last year according to Hedge Funds Review, plans a new China offering after he parted company with Martin Currie Ltd. today following an investigation into a conflict of interest.

British Investment Banks to Face Bribery Scrutiny From FSA

The U.K. finance regulator will examine whether investment banks have systems and controls in place to prevent their employees from paying bribes to win business.
Investment banks will be the subject of a future review, Tracey McDermott, the acting head of enforcement for the Financial Services Authority, said today at a financial-crime conference in London.

Casinos proposed to be covered under anti-laundering law

MANILA, Philippines?Claiming that casinos are used as ?conduits? in money-laundering operations, the Anti-Money Laundering Council (AMLC) now wants them to be covered under the law.

Pan-Asian Swaps, Repatriation, Basel Agenda: Compliance

Efforts to encourage clearing of private derivatives through a pan-Asian platform are being thwarted by countries setting up a less efficient patchwork of systems, said Keith Noyes, Asia-Pacific director for the International Swaps and Derivatives Association.

UK bank bonuses vs US bank bonuses

Barclays chief executive Bob Diamond has been handed £10.1m in salary, bonus and stock for his performance in 2010. The pay-out makes him the UK's best-paid bank boss. But as far as bonuses go, he is still trailing behind his US rivals.

Serious Fraud Office boss worried by Bribery Act delays

Delays in introducing the Bribery Act have left the Government open to charges that it is not committed to fighting corruption, Richard Alderman, director of the Serious Fraud Office, has told Kenneth Clarke, the Justice Secretary.

Should Corporate Governance be Voluntary or Mandatory

Today no one argues against the need for a system of good corporate governance to attract capital to the corporate sector. Regulators, which have the responsibility to protect the interest of sharehol-ders, continuously endeavour to improve the standard of corporate governance.

Baystar Capital Hedge Fund Manager Will Pay $14 Million to Settle SEC Suit

A California hedge fund manager agreed to pay $14 million to settle claims by the U.S. Securities and Exchange Commission that he secretly diverted cash from investors to entities he owned and controlled.