So HSBC has agreed to a record $1.9 billion settlement in its money laundering case, but will avoid criminal indictment. Why? Basically, because HSBC is too big to fail, and with Lehman Brothers’ disastrous collapse still in the rearview mirror, federal regulators essentially felt the disruption it would cause the economic system wouldn’t be worth it. […]
Lost amid the frenzy over Matthew Martoma’s potentially record-setting insider trading bust is the story of his inside source, the doctor accused of flipping the data. It’s easy to lose sight of a low-profile doctor with otherwise no connection to financial world, especially with sticker shock numbers like $276 million involved. But Matthew Martoma was […]
Matthew Martoma (above), ex-trader for the mammoth hedge fund SAC Capital, was freed today on $5 million bond for charges that he used inside information to reap $276 million in profits and avoided losses for his company. This is one of several insider trading cases linked to SAC in recent years. Check out my […]
The hits keep coming for HSBC, the multinational British megabank that could face the largest money laundering fines in U.S. history. Reuters and the NYT both reported Monday on their growing legal woes, which could involve criminal charges in addition to ever-growing fines. From Reuters: A U.S. fine for violating federal anti-money laundering laws could cost […]
Financial institutions became a lightning rod for public animus and disdain amid the 2008 meltdown. Many people, from regulators to over-leveraged home buyers, were guilty in the run-up to the collapse of the housing and financial sectors, but Wall Street firms – insulated by golden parachutes and moral hazard – became easy scapegoats to an […]