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May 17, 2013

SAC Says It Is No Longer Cooperating With Insider Trading Investigation: The New York Times DealBook Alert May 17, 2013::

The New York Times | NEWS ALERT
DEALBOOK ALERT Friday, May 17, 2013 4:00 PM EDT
SAC Says It Is No Longer Cooperating With Insider Trading Investigation
AC Capital Advisors, the hedge fund owned by the billionaire investor Steven A. Cohen, told its investors on Friday that it was no longer cooperating with the government’s insider trading investigation.
“In the past we have tried to be as transparent with you as possible about the state of the investigation while balancing our desire for transparency with the need to keep the details of a sensitive investigation confidential,” said the letter. “While we have in the past told you of our cooperation with the government’s investigation our cooperation is no longer unconditional and we do not intend to give updates in this area going forward.”
The firm said that it expects that there will be substantially more clarity as to the ultimate outcome of the investigation in the coming months. “During this period, however, the need for confidentiality will limit our ability to share with you details about how the investigation is progressing,” the letter said. “We believe the changes in posture described above will not have a financial impact to our funds; nevertheless, we felt compelled to inform you of them.”
The letter comes as SAC awaits the final resolution of a civil action brought against SAC by federal securities regulators. In that case, SAC agreed to pay $616 million to resolves accusations brought by the Securities and Exchange Commission related to illegal trading in the pharmaceutical stocks Elan and Wyeth. It neither admitted nor denied wrongdoing as part of the settlement.

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http://dealbook.nytimes.com/2013/05/17/sac-says-it-is-no-longer-cooperating-with-insider-trading-investigation/?emc=na

DealBook P.M. Edition May 17, 2013: Week in Review: How to Lose an Activist Investor in 10 Days.



TOP STORY
Week in Review: How to Lose an Activist Investor in 10 Days An investor aiming for the top, again. | Hess and hedge fund end proxy fight in compromise. | Big banks get break in rules limiting risks. | Shareholders denied access to Chase vote results. | Jesse Eisinger on why fund managers may be right on the Fed. | In role reversal, Goldman chief advises Jamie Dimon. | Clients fear Bloomberg is becoming their rival. | Uninvited guest gives Japan a jolt. | American investor targets Sony for a breakup. | Andrew Ross Sorkin makes a case for one leader at JPMorgan. | Chase vote may hinge on director.
For the latest updates, go to dealbook.nytimes.com »
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A look back on our reporting of the past week's highs and lows in finance.
Investment Banking
Fred Eckert, a former Goldman Sachs partner, is trying to start a new money management business.
Investor Aiming for the Top, Again Fred Eckert was once a star at Goldman Sachs, but by 2011 he was bankrupt, divorced and had spent two months in a coma. Today, he is planning a return to the arena.
Jamie Dimon, chief of JPMorgan Chase.
JPMorgan Shareholders Are Denied Access to Results In the midst of a closely watched investor vote on whether to separate the roles of chairman and chief executive at JPMorgan Chase, the firm providing tabulations of the vote stopped giving snapshots to the proposal's sponsors.
Jamie Dimon, left, chief of JPMorgan Chase, and Lloyd Blankfein, chief of Goldman Sachs, at the White House in 2009.
In Role Reversal, Goldman Chief Advises Dimon As he wrestles with the fallout of a bungled trade, Jamie Dimon, the chief of JPMorgan Chase, has sought advice from a banker familiar with tumult: Lloyd C. Blankfein.
Dispute at JPMorgan Grows, for All the Wrong Reasons A proposal to separate the chairman and chief executive positions at JPMorgan Chase has turned into a backdoor referendum on Jamie Dimon.
Making a Case for One Leader at JPMorgan
Making a Case for One Leader at JPMorgan It may not be popular to say, but the incontrovertible fact remains that JPMorgan Chase has remained one of the best-performing banks on Wall Street under Jamie Dimon.
Some investors wonder if Lee Raymond, lead director of JPMorgan Chase's board, has been tough enough on Jamie Dimon.
Big Vote on Dimon May Hinge on Views on JPMorgan's Top Director Lee Raymond, JPMorgan Chase's outspoken lead director, will be a major factor in its shareholder vote on Jamie Dimon's role at the bank.
As Larger British Rivals Perk Up, a Heralded Small Bank Stumbles Just as larger banks in Britain are recovering from the financial crisis, the Co-operative Bank, a smaller lender championed by lawmakers as an alternative model, is floundering.
The Bloomberg desktop terminals contain a vast store of financial and market information.
Subscribers Fear Bloomberg Is Becoming Their Rival Long thought of as a company that serves Wall Street firms, Bloomberg, through a relatively unheralded expansion, is quietly becoming more like them.
Regulatory Pressure Drives Commerzbank to Seek Out New Capital The German bank will try to raise 2.5 billion euros ($3.2 billion), to protect against future shocks and to help repay a 2009 government bailout.
Hedge Funds
A driver with Hess delivers heating oil to a hotel in New York.
How Elliott and Hess Settled a Bitter Proxy Battle Hess gave the activist hedge fund Elliott Management three board seats in exchange for the fund's support of the company's slate of five directors.
Hedge Fund Rejects Proposal by Hess to End Proxy Fight Hess said it was prepared to support two of the five nominees put forward by the activist hedge fund Elliott Management, but the proposal was promptly rejected by Elliott.
Mr. Loeb's campaign to be a partner to Sony has started the biggest fight of the activist investor's career to date.
Uninvited Guest Jolts Japan's Business Culture The hedge fund manager Daniel Loeb's demands of Sony could test Japan's commitment to economic change.
Sony Meets Outspoken Investor, but Courtesy Reigns Daniel S. Loeb, often caustic in dealing with others, had a polite meeting in Tokyo with executives of Sony, where he is trying to engineer a major shake-up.
U.S. Hedge Fund Manager Targets Sony for a Breakup Daniel S. Loeb, known for ousting Yahoo's former chief executive, is pressing Sony to spin off part of its entertainment arm.
Former BlackRock Fund Manager Arrested in Insider Trading Inquiry Mark Lyttleton, who left BlackRock in London in March, was arrested in the investigation, two people briefed on the matter said.
Ex-Hedge Fund Manager Sentenced in Insider Trading Case
Ex-Hedge Fund Manager Sentenced in Insider Trading Case Anthony Chiasson, a founder of Level Global Investors, was ordered to pay a $5 million fine and forfeit illegally obtained proceeds of as much as $2 million.
Ewan Kirk, left, and Erich Schlaikjer of Cantab Capital Partners, whose fee structure, investing strategy and entrepreneurial spirit have generated buzz.
Forging Its Own Path, British Hedge Fund Finds Success Cantab Capital Partners has been turning heads in London and New York with a new fund that aggressively undercuts its competitors on fees.
Legal/Regulatory
A proposal would change the way companies account for leases, like those for aircraft, on their balance sheets.
New Accounting Proposal on Leasing Portends Big Changes Proposed changes on reporting leases, backed by the International Accounting Standards Board and the Financial Accounting Standards Board of the United States, are unlikely to satisfy many corporations.
Regulators Overhaul Derivatives Market, but With a Caveat The Commodity Futures Trading Commission voted in favor of new rules to shine a light on risky Wall Street trading, but the commissioners softened a crucial aspect of the plan in the face of lobbying pressure from banks.
Big Banks Get Break in Rules to Limit Derivatives Risks Under pressure from Wall Street lobbyists, federal regulators will soften a rule intended to rein in banks' domination of a shadowy but lucrative market.
The financier Stanley Druckenmiller, left, said that Ben Bernanke, chairman of the Federal Reserve, is
The Trade: Why Fund Managers May Be Right About the Fed Jesse Eisinger of ProPublica says that what hedge fund investors are expressing should trouble all of us: they have almost no confidence in the Federal Reserve or the economics profession.
  • DEALBOOK » | Video  Videos: Bernanke Speech at Chicago Fed | Q. and A.
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  • DEALBOOK HIGHLIGHTS
    Life@Work: Faced With Overload, a Need to Find Focus Tony Schwartz says that small moves, it turns out, can make a significant difference.
    3 Foreign Companies Invest in U.S. Project to Export Liquid Gas In a sign the United States shale gas boom is making global waves, two Japanese conglomerates and a big French energy player signed agreements on Friday to invest up to $7 billion in a liquefied natural gas project in Louisiana.
    Rajat Gupta's Lust for Zeros As Rajat Gupta's appeal is scheduled to be heard next week, a New York Times magazine article examines the circumstances that led to his partnership with Raj Rajaratnam, the billionaire head of the Galleon Group hedge fund.
    A Toehold for China on Wall Street The China Investment Federation, a new organization supporting Sino-American deal-making, celebrated the opening of its New York office on Thursday with officials from Wall Street and China.
    White Collar Watch: Where the I.R.S. Investigation May Go From Here Peter J. Henning says that in the criminal investigation into how the Internal Revenue Service processed tax-exempt applications from conservative organizations, the critical issue may hinge on what agency officials told Congress rather than the underlying actions.
    The Trade: The Problem With the Fed's Easy Money Policies Jesse Eisinger of ProPublica asks: are we moving from the bust to the bubble - and missing the recovery for average people?
    Andrew Mason's Life After Groupon Andrew Mason, the co-founder of Groupon, will be a part-time partner at Y Combinator, the Silicon Valley start-up incubator. He also plans to start a company.
    Week in Verse
    'Before He Cheats' Daniel Loeb called for the breakup of Sony. Carrie Underwood has some advice on how to handle an activist investor.
     

CMI Gold and Silver Spot Prices as of Close in New York May 17, 2013


Spot Prices as of close of trading in New York
Friday, May 17, 2013
Updated 5/17/2013 Today Change Week Ago Month Ago Year Ago
GOLD $1,367.30 -$21.80 $1,438.00 $1,384.10 $1,574.80
SILVER $22.45 -$0.28 $23.72 $23.44 $28.04
PLATINUM $1,471.60 -$15.00 $1,488.10 $1,438.10 $1,456.70
PALLADIUM $743.60 -$0.50 $708.00 $665.60 $607.40

Energy board okays pipeline toll rates; Gas taxes driving us south; B.C.'s drop in consumer prices: BIV Today's Business News May 17, 2013.



Mining and Energy

National Energy Board okays Kinder Morgan toll rates

The fees that Kinder Morgan Canada Inc. plans to charge for transporting oil through its proposed $5.4 billion Trans Mountain Pipeline expansion between Alberta and Burrard Inlet were ... READ MORE

Transportation

 

Gas taxes driving Vancouverites south: CTF

High gas taxes are driving Lower Mainlanders south of the border at levels not seen in ... READ MORE

Economy and Finance

 

B.C. has largest drop in consumer prices in country: StatsCan

British Columbia saw the biggest drop in consumer prices in the country in ... READ MORE

Politics and Policy

 

Mayor pledges “every resource” to root out anarchist extremists

Vancouver mayor Gregor Robertson is pledging "every resource at our disposal" to root out members of ... READ MORE

More News...

   

Coast Capital sells insurance division

Lufthansa launches new Vancouver-to-Munich route

This Week's Issue

 

Global lumber industry heads into supply 'storm'

In Canada, timber supply in B.C. has been permanently changed by ... READ MORE