- Rajaratnam’s Brother Drew Scrutiny
- Galleon Chief Attacks Government’s Case Against Him
- Galleon Sells Commercial Bank, Sri Lanka Shares, Regulator Says
- Benmosche Reaffirms His Commitment to Leading AIG
- AIG’s Benmosche Signs Noncompete Deal
- Lehman Creditors Want Barclays Data From U.K.’s FSA
- Madoff Victim’s Proposed Probe of Liquidator Denied
- UBS, Ernst & Young Face Test Cases Over Madoff Funds
- Hedge funds set for rebound to pre-crisis level
- 2.8% drop in lending is largest since 1984
- LSE hit by growing competition
- Microsoft Finance Chief Liddell to Leave at Year-End
- Post to close national bureaus, send reporters afield from D.C.
Rajaratnam’s Brother Drew Scrutiny – Wall Street Journal
Before federal authorities began wiretapping hedge-fund manager Raj Rajaratnam, they were already interviewing him about another topic of interest: a hedge fund run by his brother, Rengan.
In papers filed Tuesday in a New York federal court, the Galleon Group founder disclosed that he was deposed by federal authorities in 2007 in an insider-trading investigation involving “an unrelated hedge fund.” That fund was run by Rengan Rajaratnam, Raj’s brother, people familiar with the matter said. The investigation of Sedna began as an audit by the SEC and eventually turned into an insider-trading investigation into both Sedna and Galleon, a person close to the situation said….
Galleon Chief Attacks Government’s Case Against Him – NY Times
Five weeks after he was arrested on charges of masterminding a vast insider-trading scheme, Raj Rajaratnam, the billionaire money manager, answered his accusers on Tuesday with a sharp-edged attack on the government’s case against him.
Responding for the first time to civil charges brought by the Securities and Exchange Commission, Mr. Rajaratnam said that his New York hedge fund, the Galleon Group, had based its investments on savvy research and not, as the authorities claim, on inside information…..
Galleon Sells Commercial Bank, Sri Lanka Shares, Regulator Says – Bloomberg
Galleon Group LLC, the U.S. hedge- fund firm that’s liquidating after founder Raj Rajaratnam was charged with insider trading, sold shares in Commercial Bank of Ceylon Plc last week, according to Sri Lanka’s securities regulator.
The hedge fund sold holdings in other Sri Lankan companies earlier, Udayasri Kariyawasam, chairman of the Securities & Exchange Commission of Sri Lanka said in an interview in Singapore today, without providing details…..
Benmosche Reaffirms His Commitment to Leading AIG – Bloomberg
American International Group Inc. Chief Executive Officer Robert Benmosche reaffirmed his commitment to the bailed-out insurer and signed a non-compete agreement with the company.
Benmosche struck the deal with the board, Mark Herr, a spokesman for the New York-based company, said today. The executive sought to reassure employees in a Nov. 11 memo that he was “totally committed” to leading AIG after reports that he’d threatened to resign because U.S. limits on compensation hurt the insurer’s ability to retain staff…..
AIG’s Benmosche Signs Noncompete Deal – Wall Street Journal
Robert Benmosche, chief executive of American International Group Inc., signed a noncompete agreement in a sign he is committed to remaining at the government-controlled insurer…..
Mr. Benmosche’s Aug. 16 employment letter stated that he had to negotiate and enter into noncompete arrangements before he could receive AIG common stock worth $4 million a year, part of his $10.5 million pay package. The noncompete agreement covers other insurers…..
Lehman Creditors Want Barclays Data From U.K.’s FSA – Bloomberg
Lehman Brothers Holdings Inc. creditors want the U.K.’s Financial Services Authority and PricewaterhouseCoopers International Ltd. to turn over information about Barclays Plc and the bank’s purchase of Lehman’s North American brokerage business last year.
The official committee of Lehman’s unsecured creditors asked U.S. Bankruptcy Judge James Peck to seek “judicial assistance” from the U.K. High Court of Justice to get the documents. Lehman’s creditors claim Barclays got a $5 billion discount when it bought Lehman and are seeking to recover assets……
Madoff Victim’s Proposed Probe of Liquidator Denied – Bloomberg
The liquidator for Bernard Madoff’s business doesn’t need to give evidence revealing why he chose to ignore victims’ fake profit from the fraud when calculating their claims in the case, a judge ruled.
A proposed investigation of liquidator Irving Picard sought by Lawrence Velvel, a Madoff victim who is dean of the Massachusetts School of Law, was rejected today by U.S. Bankruptcy Judge Burton Lifland in New York…..
UBS, Ernst & Young Face Test Cases Over Madoff Funds – Bloomberg
UBS AG and Ernst & Young LLP may face hundreds of damages claims if investors who lost millions of dollars in mutual funds linked to Bernard Madoff’s Ponzi scheme win a group of Luxembourg test cases.
Private and institutional investors who lost money through Access International Advisors LLC’s LuxAlpha Sicav-American Selection are suing UBS and Ernst & Young for “seriously neglecting” their supervisory duties of the fund. A Luxembourg court will decide in hearings that started today whether investors have the right to bring direct claims against the fund’s custodian and auditor……
Hedge funds set for rebound to pre-crisis level – Reuters
Investment flows into hedge funds have turned net positive and the sector is heading towards having assets under management of around $1.75 trillion (1.06 trillion pounds) by year-end, according to Morgan Stanley.
That would take them back up to levels last seen in the second quarter of 2007, it said….
2.8% drop in lending is largest since 1984 – Washington Post
Lending by U.S. banks plunged by 2.8 percent in the third quarter, the largest drop since at least 1984 and the fifth consecutive quarter in which banks have reduced lending, the Federal Deposit Insurance Corp. reported Tuesday.
The decline in lending is emerging as a serious impediment to economic recovery. Banks reduced the amount of money extended to their customers by $210.4 billion between July and September, cutting back in almost every category, from mortgage lending to funding for corporations…..
LSE hit by growing competition – Guardian.co.uk
The full effects of increased competition on the London Stock Exchange have been revealed in the company’s half year results today.
The likes of Chi-X and BATS have been grabbing market share in trading after competition was introduced in 2007, and the LSE has now reported a 37% fall in interim profits to £79.4m. As one reaction to the new environment, the company recently confirmed speculation it was in discussions to buy rival trading platform Turquoise. There was also talk earlier this year that the LSE itself could once again be in the sights of rival Deutsche Boerse…..
Microsoft Finance Chief Liddell to Leave at Year-End – Bloomberg
Microsoft Corp., the world’s largest software maker, said Chief Financial Officer Chris Liddell is departing and will be replaced by Peter Klein, finance chief of the company’s business software division.
Liddell, 51, will leave on Dec. 31 after 4 1/2 years with the company, Redmond, Washington-based Microsoft said today in a statement. Klein, 47, also has served as CFO of Microsoft’s server unit…..
Post to close national bureaus, send reporters afield from D.C. – Washington Post
The Washington Post, in a significant retrenchment, is closing its remaining U.S. bureaus outside the capital area.
The six correspondents who work in New York, Los Angeles and Chicago will be offered assignments in Washington, while three news assistants will be let go….
Tags: AIG, Bernie Madoff, Compensation, Galleon, Hedge funds, Insider Trading, Legal, Lehman Brothers, LSE, Microsoft, Raj Rajaratnam, UBS
