After yesterday’s opening remarks, the first witnesses in the Raj Rajaratnam insider trading trial took the stand. Special Agent Diane Wehner testified this morning, with details on wiretaps; former McKinsey exec Anil Kumar spoke this afternoon about conspiring with Raj.Wells Fargo’s new CFO, Tim Sloan, has a pretty simple mantra for avoiding troublesome deals.
The SEC warned hedge funds that if they beat the market by more than 3% and are “doing it on a steady basis,” they will be looked into.
AIG offered to pay $15.7 billion to buy back mortgage securities held in an investment fund set up as part of its massive federal bailout.
Fortress started an Asia-focused macro hedge fund with a goal of having $500 million AUM.
Mary Schapiro on why she needs more funding for her agency: “This year finds the S.E.C. at an especially critical juncture in its history. Dodd-Frank will require significant additional resources or a substantial reduction in the performance of our core duties.”
A Morgan Stanley advisor quit his job and founded a business to help more people grow and sell marijuana.
Last year, a bunch of SEC workers were caught checking out porn sites instead of Ponzi schemes. It turns out many were high-ranking employees; 33 of them were “counseled or disciplined” for their behaviour.
Non-Wall Street Bonus
Lindsay Lohan rejected a plea offer in her necklace pilfering case to avoid going back to jail.