DealBook P.M. Edition July 26, 2013: Week in Review: A Crippling Blow Follows Outsize Profits



Friday, July 26, 2013
TOP STORY
Week in Review: A Crippling Blow Follows Outsize Profits Fund indicted; called magnet for cheating. | Wall Street's exposure to hacking laid bare. | Trader and S.E.C. lawyer spar over e-mail. | A legal bane of Wall Street switches sides.

A look back on our reporting of the past week's highs and lows in finance.
Mergers & Acquisitions
Activision Blizzard is the maker of popular game franchises like Call of Duty.
Activision to Buy Back $8.2 Billion in Shares The world's biggest video game publisher reached a deal to separate from Vivendi and become an independent company.
Michael Dell says he will pay more only if the company drops a rule that shares not voted will count as votes against the deal. 
Dell Founder Raises Takeover Bid, With Conditions Michael S. Dell offered a small increase in price in exchange for a more certain shareholder vote.
Hedge Funds
Deal Professor: Yahoo's Share Buyback Is Legal, but Timing Is Suspect Daniel Loeb's exit from Yahoo raises the question of whether he was out to create true value or merely stir the pot.
Daniel S. Loeb, founder of Third Point, at a conference in Las Vegas last year.
After Victories at Yahoo, Investor Will Leave Board Yahoo has agreed to buy 40 million shares of its stock from Mr. Loeb's firm.
Legal/Regulatory
SAC Capital Is Arraigned on a Raft of Criminal Charges In a brief proceeding in Federal District Court in Lower Manhattan, the hedge fund was arraigned on insider trading charges, making it the first large American company to face an indictment in more than a decade.
SAC's offices in Stamford, Conn.
Fund Indicted; Called Magnet for Cheating Federal authorities, under fire for handling Wall Street with kid gloves, have delivered a crippling blow to one of its most successful firms, SAC Capital Advisors, whose outsize trading profits have drawn government scrutiny for more than a decade.
Steven Cohen, the chief of SAC Capital Advisors.
SAC Case Threatens a Wall St. Cash Cow Brokers said that SAC Capital was one of the largest commission generators for Wall Street.
A Relentless Prosecutor's Crowning Case A victory in the case could propel Preet Bharara onto a bigger platform.
In Case Against SAC Capital, a Show of Force When Steven A. Cohen's lawyers arrived for a meeting this spring at the United States attorney's offices, the room was packed with federal investigators - a signal that the government was no longer interested in just monetary settlements.
News Analysis: For SAC, Indictment May Imperil Its Survival The extent to which an indictment or a conviction can be damaging depends on details of the nature of the business and of a company's customers.
Criminal Indictment Is Expected for SAC Capital Advisors The Times reported on Tuesday that the government was expected to announce the indictment.
A Towering Fine for Naught, as the S.E.C. Tracks Cohen
DealBook Column: A Towering Fine for Naught, as the S.E.C. Tracks Cohen Why did Mr. Cohen pay more than half a billion dollars to settle the case, asks Andrew Ross Sorkin?
Case Reveals Cohen's Links to Dubious Actions at SAC The S.E.C. is using phone records and e-mails to depict SAC Capital's chief as deeply engaged in his employees' questionable behavior.
Recent indictments of hackers raise concerns that programmers are developing tools that could wreak havoc on the broader financial system.
Wall Street's Exposure to Hacking Laid Bare Recent indictments of hackers raise concerns that programmers are developing tools that could wreak havoc on the broader financial system.
U.S. Says Ring Stole 160 Million Credit Card Numbers The scheme ran from 2005 until last year and caused hundreds of millions of dollars in losses, prosecutors said.
The former Goldman trader Fabrice Tourre is accused of duping investors into buying toxic assets.
Defense Tries to Show Sympathetic Side of Ex-Trader Fabrice Tourre's legal team worked to rehabilitate his image.
Trader and S.E.C. Lawyer Spar Over E-Mail The government waited more than three years to have a chance to shred the credibility of the former Goldman Sachs trader in front of a jury.
Witness in Tourre Case Describes Difficulty in Knowing Deal's Friends From Foes Laura Schwartz said she believed a hedge fund supported a transaction her firm invested in, but the fund actually bet against it.
Tourre Lawyers Focus on Reliability of Federal Witness Some of Gail Kreitman's testimony seemed to directly contradict what the former Goldman employee said during earlier testimony.
After he left his position as Wall Street's top federal enforcer, Robert S. Khuzami was wooed by several financial giants and white-shoe law firms.
A Legal Bane of Wall Street Switches Sides Robert S. Khuzami is following the quintessential Washington script: an influential government insider becoming a paid advocate for industries he once policed.
New Powers Invoked to Curb a High-Speed Trading Feint Three regulatory agencies set penalties on Panther Energy and its owner over a practice known as "spoofing" meant to manipulate markets.
DEALBOOK HIGHLIGHTS
White Collar Watch: Going After Steven Cohen's Wallet Whether prosecutors can succeed in forcing Steven A. Cohen to give up billions of dollars of assets will depend on showing that insider trading so infected SAC Capital Advisors that much of its money should be forfeited as the tainted proceeds of money laundering, says Peter J. Henning.
Life@Work: The Antidote to Emptiness The behavior of men like Anthony Weiner and Steven A. Cohen suggests they were desperately seeking validation, says Tony Schwartz. But there are better ways to fill that inner emptiness.
Pearson Puts Mergermarket Up for Sale Pearson bought the news and data service, which has 400 journalists focused on mergers and acquisitions in 67 locations, for about $192 million in 2006.
Profit at Nomura Surges on Rally in Japanese Markets Japan's biggest brokerage said Friday its net income for the most recent quarter was nearly 35 times higher than a year ago.
Breakingviews: Vivendi's Reinvention Takes Shape But in two asset sales this week, says Quentin Webb, investors may be disappointed that Vivendi did not realize the premium that usually comes with ceding control.
Buzz Tracker
At SAC, Rules Compliance With an 'Edge' SAC Capital Advisors is proud of its "strong culture of compliance" with insider-trading rules, but the government's indictment shows little evidence of it, writes James B. Stewart in his Common Sense column for The New York Times.
Week in Verse
'Criminal' Fiona Apple's 1997 hit about cheating is dedicated to all the traders and politicians who got caught this week.

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