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Sep 26, 2014

Bloomberg Views | Share The View - September 26, 2014: Eric Holder and Jeter Haterade.

Bloomberg View
Share The View


The Editors: "Attorney General Eric Holder, who plans to step down after more than five years in office, has efforts and achievements to be proud of, no doubt, but will probably be remembered above all for something he didn't do: prosecute top executives for their role in the 2008 financial crisis." Read more...
Michael Lewis: "The Ray Rice video for the financial sector has arrived."Read more...

Kavitha A. Davidson: "Hop on the Derek Jeter Polarizing Express: the hype machine that seeks to deify our beloved Captain but ultimately fuels the often-disproportionate backlash against him. I've grown weary of this recent wave of Jeter Haterade -- a term that takes on literal meaning after the Gatorade commercial that you could either view as a heartwarming tribute to the player and the fans who loved him or yet another example of how corporate America's tentacles have reached into every aspect of sports, tugging at our heartstrings in order to sell us drinks that look like biofuel."Read more...

Mohamed A. El-Erian: "Gold has let down its loyal investors during the past year, declining by about 8 percent. ... I can think of three major reasons for gold's disappointing performance. First, it usually does badly when the dollar appreciates." Read more...

The Editors: "Amid a spate of scandals over the rigging of financial benchmarks ranging from commodities to currencies to interest rates, the U.K. government is making a bold move toward restoring confidence: By the end of this year, it plans to make manipulation a criminal offense in all the affected markets. The U.K.'s plan -- aimed at maintaining London's role as a major financial center -- raises some questions." Read more...

Leonid Bershidsky: "For many years, Apple Macintosh and Linux computers were considered to be safer from malicious intervention than Windows machines. That seems to have been an illusion. A piece of software powering those flavors of personal computers and Web servers has a serious vulnerability, without a quick fix." Read more...

Barry Ritholtz (Read the news roundup)
  • Americans think we're in a recession. They're wrong. But still... Read more...
  • Capitalism is saving the climate, you hippies.
  • Wall Street still needs a leader on reform. Read more...
Matt Levine (Read the news roundup)

CMI | Spot Prices as Close of Trading in New York on September 26, 2014.

Spot Prices as of close of trading in New York

Friday, September 26, 2014











SEC | Enforcement Actions - September 26, 2014: SEC Charges Four Insurance Agents in Securities Fraud Targeting Elderly Investors

SEC Seal
09/26/2014 01:21 PM EDT

The Securities and Exchange Commission today announced charges against four insurance agents for unlawfully selling securities in what turned out to be a multi-million dollar offering fraud targeting elderly investors.
The SEC previously charged a Colorado man who allegedly orchestrated the scheme and recruited active insurance agents to help him solicit investors in Colorado and several other states.  The scheme raised approximately $4.3 million during a nearly 18-month period.  The SEC’s investigation further found that the four insurance agents charged today solicited funds without registering with the SEC as a broker-dealer as required under the federal securities laws.
“When individuals act as a broker and sell securities to the public, they must comply with registration, supervision, and compliance requirements that exist to protect investors,” said Julie K. Lutz, Director of the SEC’s Denver Regional Office.  “These insurance agents improperly operated outside of that regulatory framework and thereby placed their clients at risk.”
According to the SEC’s order instituting administrative proceedings, the scheme primarily targeted retired annuity holders by using insurance agents to sell interests in a company called Arete LLC, which was controlled by the Colorado man orchestrating the scheme: Gary Snisky.  The insurance agents told investors that their funds would be used by Snisky to purchase government-backed agency bonds at a discount.  However, Snisky did not purchase bonds or conduct any such trading, and he misappropriated approximately $2.8 million of investor funds to pay commissions and make personal mortgage payments.
The SEC’s Enforcement Division alleges that the following three brokers raised approximately $1.5 million for Snisky and received almost $90,000 in commissions:
  • Kenneth C. Meissner of Fair Oaks Branch, Texas
  • James Doug Scott of Perkasie, Penn.
  • Mark S. “Mike” Tomich of Belmont, Mich.
The other insurance agent – David C. Sorrells of Linden, Texas – entered into a cooperation agreement with the SEC.  Without admitting or denying the findings, Sorrells consented to an order finding that he violated Section 15(a) of the Securities Exchange Act of 1934.  He agreed to be barred from the securities industry, cease and desist from future violations of Section 15(a), and pay disgorgement of $207,213.34.  He also is subject to an additional financial penalty.  The settlement reflects substantial assistance that Sorrells provided in the SEC’s investigation.
The SEC’s Enforcement Division alleges that Meissner, Scott, and Tomich violated Section 15(a) of the Exchange Act, and is seeking disgorgement, penalties, and securities industry bars in the matter, which will be litigated before an administrative law judge.  The SEC’s case against Snisky, filed in November 2013, is still pending in federal court in Colorado.
The SEC’s investigation was conducted by Scott Mascianica, Kerry M. Matticks, and Jay A. Scoggins of the Denver office.  The SEC’s litigation will be led by Polly A. Atkinson and Leslie Hughes.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of Colorado, Internal Revenue Service, Federal Bureau of Investigation, and U.S. Postal Inspection Service.

SEC | Press Release - September 26, 2014.: SEC Announces Cases Targeting International Pyramid Scheme Operators.

I Hope that someday,The SEC would investigates Perú
    Fernando Guzmán Cavero 

SEC Seal

09/26/2014 11:30 AM EDT

The Securities and Exchange Commission today announced charges against the operators of an international pyramid scheme that raised more than $129 million from investors worldwide, primarily in the U.S., China, and Taiwan.  The case follows another against a separate pyramid scheme that lured investors in the U.S., China, and Korea with seminars, webinars, and YouTube videos.
The newest case, filed in federal court in San Francisco, charges Hong Kong-based eAdGear Holdings Limited and California-based eAdGear, Inc., along with operators Charles S. Wang and Qian Cathy Zhang, of Warren, N.J., and Francis Y. Yuen, of Dublin, Calif.  According to the SEC complaint, even though eAdGear claimed to be a successful Internet marketing company, nearly all of its revenue was generated by investors, not its products or services.
The complaint alleges that eAdGear’s operators used money from new investors to pay earlier investors as well as to repay a personal loan and purchase million-dollar homes for themselves. It alleges the operators concealed and perpetuated the scheme by displaying sham websites on eAdGear’s own site to make it appear as if it had real, paying customers and manipulated revenue distributions to investors to appear profitable.
“eAdGear and its operators falsely claimed that they were running a profitable Internet marketing company when in reality, they were operating a Ponzi and pyramid scheme that preyed on Chinese communities and caused investors to lose millions of dollars,” said Jina L. Choi, director of the SEC’s San Francisco Regional Office.
The eAdGear case follows one filed Monday in federal court in Georgia against Zhunrize Inc. and CEO Jeff Pan for allegedly defrauding investors of more than $105 million since 2012.  Despite its claims to be a legitimate multi-level marketing company, Zhunrize derived most of its funds from selling memberships, not products, according to the SEC complaint.
“Zhunrize claimed to offer investors the opportunity to be an ‘e-commerce Business Owner’ selling products to customers through a website.  In fact, it was a pyramid and ‘profits’ came from fees paid by later investors,” said William Hicks, associate regional director of the SEC’s Atlanta Regional Office.
In both cases, the courts granted the SEC’s request for an asset freeze and issued a temporary restraining order.  In the case of eAdGear, that order bars the defendants from soliciting investors, including through websites they have used until now –,  A court hearing has been scheduled for October 10.
Jessica W. Chan, John A. Roscigno, and Jason M. Habermeyer of the SEC’s San Francisco Regional Office conducted the eAdGear investigation.  Erin E. Schneider and Cary S. Robnett supervised the investigation.  Ms. Chan and Susan F. LaMarca will lead the SEC’s litigation.  The SEC appreciates the assistance of the United States Attorney’s Office for the Northern District of California and the Federal Bureau of Investigation.  It also appreciates the assistance of the Hong Kong Securities and Futures Commission, the China Securities Regulatory Commission, the Ontario Securities Commission, and the Financial Conduct Authority in the United Kingdom.
Michael E. Mashburn and Kristin Wilhelm of the SEC’s Atlanta Regional Office conducted the Zhunrize investigation, supervised by Peter J. Diskin.  Ms. Wilhelm is leading the SEC’s litigation. 

FTC | Competitions Matters - September 26, 2014: After 100 years, looking ahead to our next century.

Competition Matters Banner

By: Edith Ramirez, Chairwoman
Sept. 26, 2014 

One hundred years ago today, the New York Times’ news pages were filled with coverage of the outbreak of World War I in Europe. There were stories about the newly opened Panama Canal and the growing movement for women’s suffrage. For $200, an ad in the paper offered readers the chance to purchase a Victrola phonograph.
Two weeks earlier in September 1914, readers of the Times may also have noticed a news item under the single-column headline: “Trade Board Bill Wind-Up.” It reported that Congress had enacted new antitrust legislation creating a bipartisan, five-member body called the Federal Trade Commission.
When President Woodrow Wilson signed the FTC Act on September 26, 1914, he opened the first chapter in the ongoing story of the nation’s leading consumer agency.
Today, on the FTC’s anniversary, it’s an opportunity for us to reflect on the agency’s long and successful history of fostering honest business practices and robust competition in the marketplace and take stock of the FTC’s bright future.
Few could have predicted the dramatic changes – overseas and at home – that would transform the United States and our economy over the last century. In the years after President Wilson signed the FTC Act, then-cutting edge technologies like movies and radio dramatically reshaped U.S. commerce. Our economy is now being transformed by, among other things, wireless communications services, the Internet of Things, and Big Data.
Through the decades and all of these dramatic changes, the FTC has played the same trusted role – promoting competition and the interests of American consumers using the tried-and-true tools of law enforcement, sound public policy, and consumer education.
I’m proud that the FTC continues to be on the cutting edge of rapid economic and technological changes. No doubt the next century will bring even more transformation that will impact the American economy and consumers. I’m confident that the FTC is well-positioned to meet the challenges of the next 100 years, and that it will continue to carry out successfully its mission on behalf of consumers.

FDIC | Press Release - September 26, 2014: FDIC Makes Public August Enforcement Actions...

Press Release

FDIC Makes Public August Enforcement Actions;

No Administrative Hearings Scheduled for October 2014

September 26, 2014
Media Contact:
LaJuan Williams-Young
Office: (202) 898-3876
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in August. No administrative hearings are scheduled for October 2014.

The FDIC issued a total of 37 orders. The orders included: seven consent orders; six removal and prohibition orders; five section 19 orders; two civil money penalties; one amended consent order; 15 orders terminating consent orders and cease and desist orders; and one adjudicated decision.

Copies of the orders referred to above can be obtained from or inspected at the FDIC's Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA (telephone 703-562-2200 or 1-877-275-3342). To view all orders online, visit the FDIC's Web page by clicking the link below.

U.S. Bureau of Economic Analysis | Press Release: Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.6 percent in the second quarter of 2014...

The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.6 percent in the second quarter of 2014,  according to the "third" estimate released by the Bureau of Economic Analysis.  In the first quarter, real GDP decreased 2.1 percent.
The full text of the release on BEA's Web site can be found at

WSJ | Biggest Decliners Closing on September 26, 2014.

Biggest Decliners Closing
Biggest Decliners
4:31 pm ET 09/26/2014
Pulse Electronics (PULS)540,215$1.50-0.76-33.63
GrafTech International (GTI)7,117,8984.45-0.55-11.00
PIMCO Corporate&Income Opportunity Fund (PTY)3,541,22017.18-1.22-6.63
PIMCO High Income Fund (PHK)14,137,40011.69-0.76-6.10
PIMCO Global StocksPLUS&Income Fund (PGP)1,081,00323.67-1.44-5.73
Mobile Telesystems ADS (MBT)3,673,40415.79-0.86-5.17
Rio Alto Mining (RIOM)139,3482.49-0.13-4.96
PIMCO Strategic Income Fund (RCS)1,099,9449.73-0.47-4.61
Companhia Siderurgica Nacional ADS (SID)5,941,6713.78-0.18-4.55
PIMCO Income Strategy Fund (PFL)927,74211.77-0.55-4.46
Cliffs Natural Resources (CLF)13,824,57710.94-0.50-4.37
PIMCO Corporate&Income Strategy Fund (PCN)827,55615.74-0.69-4.20
Valhi (VHI)275,1136.65-0.29-4.18
Vectrus (VEC@)605,00021.75-0.85-3.76
McEwen Mining (MUX)1,930,5882.10-0.08-3.67
Primero Mining (PPP)551,3805.13-0.19-3.57
Hornbeck Offshore Services (HOS)1,152,28334.65-1.24-3.46
Puma Biotechnology (PBYI)621,115246.07-8.80-3.45
AuRico Gold (AUQ)1,647,4633.67-0.13-3.42
Navios Maritime Acquisition (NNA)696,6052.85-0.10-3.39
Pimco Income Strategy Fund II (PFN)1,360,14510.31-0.36-3.37
Cheetah Mobile ADS (CMCM)1,001,02720.03-0.68-3.28
Arch Coal (ACI)4,744,9922.09-0.07-3.24
Shinhan Financial Group ADS (SHG)70,07446.99-1.56-3.21
Lee Enterprises (LEE)448,8873.35-0.10-2.90
AcelRx Pharmaceuticals (ACRX)3,847,889$5.41-1.31-19.49
Finish Line Cl A (FINL)5,188,91125.11-4.30-14.62
ALCO Stores (ALCS)613,5712.08-0.31-12.97
GlycoMimetics (GLYC)160,0947.19-1.04-12.64
Erickson (EAC)46,47513.16-1.54-10.48
Powell Industries (POWL)530,75945.54-4.18-8.41
Koss (KOSS)22,5891.89-0.17-8.01
Lilis Energy (LLEX)16,3811.97-0.17-7.94
Egalet (EGLT)46,8306.17-0.48-7.22
CareDx (CDNA)114,6807.40-0.56-7.04
ADDvantage Technologies Group (AEY)18,7912.32-0.16-6.45
Home Inns&Hotels Management ADS (HMIN)186,11029.34-1.89-6.05
VelocityShares Daily 2x VIX Short Term ETN (TVIX)16,892,7632.92-0.18-5.81
Highpower International (HPJ)1,661,4577.27-0.44-5.71
On Track Innovations (OTIV)1,164,2772.82-0.16-5.37
Magal Security Systems (MAGS)144,0124.73-0.26-5.21
Burcon Nutrascience (BUR)3,9003.08-0.17-5.08
CyberArk Software (CYBR)4,624,71829.80-1.59-5.07
Tuniu ADS (TOUR)402,19617.10-0.91-5.05
Covisint (COVS)181,2324.28-0.22-4.89
Atlanticus Holdings (ATLC)6,5412.00-0.10-4.76
TriVascular Technologies (TRIV)9,05912.45-0.62-4.74
MoSys (MOSY)105,9922.42-0.12-4.72
Sophiris Bio (SPHS)33,8702.85-0.14-4.68
Rubicon Technology (RBCN)607,1274.30-0.21-4.66
Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG)4,956,365$13.19-1.03-7.24
ProShares Ultra VIX Short-Term Futures ETF (UVXY)10,980,58026.32-1.91-6.77
E-TRACS UBS Bloomberg CMCI Gold ETN (UBG)12,68531.56-1.67-5.03
ProShares UltraShort MSCI Brazil Capped (BZQ)15,62661.54-3.23-4.99
Direxion Daily Gold Miners Bull 3x Shares (NUGT)5,307,64425.10-1.19-4.53
VelocityShares 3x Inverse Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return (DWTI)7,01828.70-1.30-4.33
ELEMENTS ETN-SPECTRUM Large Cap U.S. TR (EEH)3,29123.87-1.01-4.06
Direxion Daily Real Estate Bear 3x Shares (DRV)57,74339.46-1.65-4.01
Direxion Daily Energy Bear 3x Shares (ERY)721,90415.61-0.63-3.88
Direxion Daily Semiconductor Bear 3X Shares (SOXS)182,74118.33-0.70-3.68
PowerShares DB Agriculture Double Long ETN (DAG)35,1055.85-0.21-3.47
ProShares VIX Short-Term Futures ETF (VIXY)1,414,87719.55-0.70-3.46
Direxion DailyTechnology Bear 3x Shares (TECS)79,68113.45-0.48-3.45
Barclays Bank iPath S&P 500 VIX Short Term Futures ETN (VXX)44,120,11329.37-0.95-3.13
ETFS Physical Palladium Shares (PALL)163,72875.65-2.20-2.83
Market Vectors Indonesia Small-Cap ETF (IDXJ)3,40014.12-0.41-2.79
Market Vectors Junior Gold Minets ETF (GDXJ)7,291,36334.79-0.99-2.77
ProShares UltraPro Short Dow30 (SDOW)873,44024.41-0.65-2.59
Direxion Daily Financial Bear 3x Shares (FAZ)3,693,11916.40-0.43-2.55
Direxion Daily Small Cap Bear 3x Shares (TZA)14,485,18316.15-0.42-2.53
Direxion Daily S&P 500 Bear 3X Shares (SPXS)2,172,83224.33-0.60-2.41
ProShares UltraPro Short Russell2000 (SRTY)512,50541.38-1.02-2.41
ProShares UltraShort Oil&Gas (DUG)111,38742.38-1.04-2.40
ProShares UltraPro Short S&P 500 (SPXU)3,329,10944.74-1.08-2.36
Global X Pure Gold Miners ETF (GGGG)18,13610.36-0.24-2.27
Pulse Electronics (PULS)540,215$1.50-0.76-33.63
AcelRx Pharmaceuticals (ACRX)3,847,8895.41-1.31-19.49
Finish Line Cl A (FINL)5,188,91125.11-4.30-14.62
ALCO Stores (ALCS)613,5712.08-0.31-12.97
GlycoMimetics (GLYC)160,0947.19-1.04-12.64
GrafTech International (GTI)7,117,8984.45-0.55-11.00
GWG Holdings (GWGH)30,34011.75-1.40-10.65
Erickson (EAC)46,47513.16-1.54-10.48
Powell Industries (POWL)530,75945.54-4.18-8.41
Koss (KOSS)22,5891.89-0.17-8.01
Lilis Energy (LLEX)16,3811.97-0.17-7.94
CBD Energy (CBDE)19,2332.19-0.19-7.80
LGL Group (LGL)32,2203.92-0.33-7.76
Viggle (VGGL)79,9943.27-0.27-7.63
Immucell (ICCC)5,5024.91-0.39-7.36
Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG)4,956,36513.19-1.03-7.24
Egalet (EGLT)46,8306.17-0.48-7.22
CareDx (CDNA)114,6807.40-0.56-7.04
ProShares Ultra VIX Short-Term Futures ETF (UVXY)10,980,58026.32-1.91-6.77
PIMCO Corporate&Income Opportunity Fund (PTY)3,541,22017.18-1.22-6.63
ADDvantage Technologies Group (AEY)18,7912.32-0.16-6.45
Oxbridge Re Holdings (OXBR)15,4106.16-0.41-6.24
PIMCO High Income Fund (PHK)14,137,40011.69-0.76-6.10
Home Inns&Hotels Management ADS (HMIN)186,11029.34-1.89-6.05
Ascent Solar Technologies (ASTI)285,1541.92-0.12-5.88
See All Decliners
Includes common, closed end funds, ETFs, ETNs and REITS with prior day close of $2 a share or higher, with volume of at least 2,000.
x - stock is trading ex-dividend
Source: WSJ Market Data Group