Regulators probe block trading at Wall Street banks, hedge funds- WSJ Reuters Feb 14 (Reuters) - Federal investigators have launched a probe into block trading at Wall Street hedge funds and banks including Morgan Stanley (MS.N) and Goldman Sachs Group Inc (GS.N), the Wall Street Journal reported, citing people familiar with the matter. The Securities and Exchange Commission (SEC), along with the Department of Justice, is investigating whether bankers may have improperly tipped off hedge funds ahead of large share sales, the report said on Monday. Morgan Stanley, Goldman Sachs, the Securities and Exchange Commission and the Department of Justice declined to comment. The SEC has sent subpoenas to several hedge funds and banks, demanding trading records and information about investors' communication with bankers, according to the WSJ report which also said regulators began looking into irregularities related to block trades since at least 2019. Investigators are probing whether bankers improperly alerted favored clients ahead of public disclosure of trades and if such information benefited the funds, some of which act as "liquidity providers" to Wall Street firms, the report said. Reporting by Sohini Podder in Bengaluru; Additional reporting by Chris Prentice and Matt Scuffham in New York; Editing by Shinjini Ganguli
The SEC is a joke. They will do nothing as usual. I'm sure Gensler will prosecute his future employers. Get real. What is the AG doing beside twiddling his thumbs. Hard to believe that an AG from the Reagan era (Rudy Giuliani) did the most to get rid of malfeasance.
Reminds me when mutual funds allowed hedge funds to make transactions after the market close and to make as many transactions as they wanted. The general public investor was barred from after hour transactions and kicked out if they made too many transactions. The hedge funds were able to receive the 4PM closing asset value. It didn't matter if the news was good or bad news after 4 PM close you received the 4pm closing price. That was a big advantage if you expected the move to continue to the next day
https://www.cnbc.com/2022/02/14/buf...t-activision-stock-before-microsoft-deal.html Warren Buffett’s Berkshire Hathaway purchased about $1 billion worth of shares in Activision Blizzard in the fourth quarter, according to a regulatory filing, jumping in before Microsoft agreed to buy the video game publisher for $68.7 billion. Berkshire owned 14.66 million shares valued at $975 million as of the end of 2021, the filing shows. Microsoft announced its intention to acquire Activision Blizzard in mid-January for $95 per share, sending the stock up 25% to above $82, though it’s since fallen a bit. It would be the largest deal ever by a U.S. technology company. Buffett is poised to notch a handsome profit should the acquisition close. The stock reached as low as $56.40 in the fourth quarter after the California Department of Fair Employment and Housing filed a suit alleging that Activision and its subsidiaries fostered a sexist culture and paid women less than men.
Seems like yesterday. www.latimes.com/archives/la-xpm-2003-nov-21-fi-pilgrim21-story.html%3f_amp=true “The two men allegedly allowed a hedge fund in which Pilgrim was a major investor to secretly engage in profitable “market timing” of PBHG funds, even though they barred most other investors from doing so.
%% And that fund, i remember the name Pilgrim/they actually had a good track record, on some of thier funds