From Bloomberg | Illinois and New York issuers will offer $4.7 billion of this week’s municipal debt with scheduled sales 52 percent higher than the same week last year, as local governments seek to place deals before the end of 2010.
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OptionsXpress to pay special cash dividend
Online brokerage optionsXpress Holdings Inc. said it will return about $259 million to shareholders as special dividend payout in the absence of “value-creating” acquisition opportunities. Get the full story »
Wall Street slides on euro-debt woes
Commodity-related shares led U.S. stocks lower on Friday in a shortened post-holiday session as investors unloaded risky assets on worries that euro-zone debt problems may spread.
Consumer stocks were also a major focus as Black Friday, often the biggest shopping day of the year, began what is expected to be the strongest holiday shopping season in three years.
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Nov. 24, 2010 at 3:44 p.m.
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Filed under: Crime, Criminal charges, Fraud, Investigations, Investing Research firm exec arrested in insider trading probe
An executive of a California research firm was arrested Wednesday on securities fraud and conspiracy charges after U.S. prosecutors accused him of arranging for inside information to be leaked to hedge funds, the latest development in an investigation of the industry.
The arrest of Don Ching Trang Chu of Primary Global Research stems from wiretaps and the cooperation of Richard Choo-Beng Lee, a hedge fund manager who pleaded guilty last year as part of the insider-trading prosecution of Galleon Group hedge fund founder Raj Rajaratnam and 22 other traders, lawyers and executives. Get the full story »
Madison Dearborn exec in bid for Phoenix Coyotes
A Madison Dearborn managing director is a member of the investor group seeking to buy the National Hockey League’s Phoenix Coyotes.
George Peinado, who joined the Chicago-based private equity firm seven years ago from DLJ Merchant Banking Partners, confirmed that he’s a “minority investor” in a group headed by Matthew Hulsizer of Chicago-based Peak6. Get the full story »
Largest Ariel funds outpace peers in 3Q
Ariel Investments’ two biggest mutual funds outperformed their peers in the third quarter, and the Chicago-based money manager also said it plans to “remain patient” with “weak-performing” PrivateBancorp Inc.
Ariel on Tuesday released the results for its Ariel Fund, which has assets of $1.93 billion, and its Ariel Appreciation Fund, which has $1.32 billion in assets. Get the full story »
SEC lets bond issuers skirt Dodd-Frank
Bloomberg News | The Securities and Exchange Commission has indefinitely extended a rule exempting asset-backed bond issuers from reporting credit ratings in their marketing materials, undermining part of the Dodd-Frank financial reform law.
Commodities might continue declining
If you are tempted to buy commodities after the 7 percent recent downturn, Bespoke Investment Group is suggesting a moment of hesitation.
“History suggests that investors may be better served by waiting for lower prices,” the analysts said in a note to clients. Get the full story »
Northern Trust to run non-profit’s pension
Chicago-based Northern Trust Corp. has been hired to provide custody services for more than $800 million in pension, endowment and operating funds of John Muir Health of Walnut Creek, Calif.
It’ll also provide benefit payment services for the organization’s pension plan. Get the full story »
Denver bank starts new investment firm in Chicago
Denver-based investment bank Headwaters MB has created a financial institutions practice that’ll be headquartered in Chicago and focus on mergers and acquisitions and capital raising for banks with assets of up to $3 billion.
“There’s a significant opportunity to participate in the impending wave of industry consolidation,” said Managing Director Eliot Stark, who before joining Headwaters worked for Chicago-based investment bank Capital Insight Partners. Stark also once served as a corporate development, finance and planning executive for Comerica Bank, where he was involved with dozens of M&A transactions. Get the full story »
Citi to put $3 billion to $4 billion in consumer bank
Citigroup Inc. plans to spend $3 billion to $4 billion on its consumer bank to attract more business from its wealthy, urban customers, the head of its North American consumer bank said on Wednesday. Get the full story »
Three men charged in Islamic-based Ponzi scheme
Three owners of a Chicago-based real estate development firm have been charged with fraud for allegedly cheating investors out of $43 million while claiming to be compliant with Islamic law.
A federal grand jury returned a 14-count indictment against the owners of Sunrise Equities on Tuesday, U.S. Attorney Patrick Fitzgerald said in a Wednesday statement. Federal officials said Salman Ibrahim, the majority owner and president of the now-bankrupt firm, and Mohammad Akbar Zahid, senior vice president of investor relations and a 10-percent owner, told clients that their investments would comply with Shariah law.
Islamic law prohibits interest, so Ibrahim and Zahid told investors they would receive monthly pay-outs of profits from real estate development. According to Fitzgerald’s office, the men promised annual returns of between 15 and 30 percent. Get the full story »
GM offering may leave out many small investors
When General Motors finally offers stock to the public later this week, small investors will probably be left out in the cold.
Pension funds, mutual funds and other big institutions all want a piece of the rehabilitated GM. That means the three dozen banks divvying up the new shares may not have much left for individual investors.
And being left out of the initial public offering can mean being left out of some big profits: Shares of newly public companies sometimes jump 10 percent or more on the first day of trading, handing easy money to those lucky enough to get access at the offering price.
General Growth to take charge for Hughes spinoff
General Growth Properties Inc., which emerged from bankruptcy last week, said it expects to take a $537 million noncash charge in connection with the spinoff of the Howard Hughes Corp. Get the full story »
Wealthy open to wooing from rival banks
Just because people are affluent doesn’t mean they’re impressed with their financial institution.
In its seventh annual survey of affluent investors who do business with various banks and financial firms, PNC found that most wealthy investors are receptive to pitches from other service providers. Get the full story »
