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Showing posts with label SEC. Show all posts
Showing posts with label SEC. Show all posts

Thursday, August 14, 2014

SEC Charges Kansas With Failing to Disclose Pension Risks

This singular instance of fraud, or worse, should stand as a beacon of Morality and Integrity for the other 49 states. For them to not conceal any pension shortfalls backing state bonds from investors or the SEC is truly remarkable.

For any other states to have undertaken similar disclosure frauds to the SEC could prove to be a colossal collapse for pensioners and bond investors throughout the world, bringing down the entire US debt markets. It would place another bailout scourge upon US taxpayers far greater than 2008, a bailout demand which would bring all citizens into the street in anger.


By Martin Z. Braun - Aug 11, 2014
 

This man was never informed (innocent)
Mark Parkinson (D), governor of Kansas
2009-2011
The U.S. Securities and Exchange Commission charged Kansas with failing to disclose a "multibillion-dollar" pension liability to bond investors.

Documents for eight bond offerings in 2009 and 2010 by the state's Development Finance Authority didn't tell investors that a study had pegged Kansas's public-employee pension as the second-most underfunded in the nation. Kansas, which didn't admit or deny the findings, put in place new 

This man is vigorously working on it
Sam Brownback (R), governor of
Kansas 2011-
disclosure policies and agreed to settle the case.

"Kansas failed to adequately disclose its multibillion-dollar pension liability in bond offering documents, leaving investors with an incomplete picture of the state's finances and its ability to repay the bonds amid competing strains on the state budget," LeeAnn Ghazil Gaunt, chief of the SEC Enforcement Division's Securities and Public Pension Unit, said in a statement from Washington.

The SEC has been cracking down on faulty disclosure by states and localities that borrow in the $3.7 trillion municipal-bond market.

It settled a similar case with New Jersey in 2010, the first time the regulator targeted a state. Last year, Illinois became the second state to settle with the SEC over charges it misled investors about a growing shortfall in its employee pension funds as it sold $2.2 billion in bonds.

Around the same time as New Jersey's settlement, the SEC began questioning the disclosures in eight Kansas bond issues that raised $273 million, the SEC said. 

Growing Gap


As the Sunflower State prepared to issue $127 million of bonds in 2009, a draft actuarial report provided to Kansas's public pension found that the gap between its liabilities and assets had grown to $8.3 billion in 2008, from $5.6 billion the previous year, lowering the pension's funding level to 59 percent, the SEC said. The gap was the result of years of insufficient contributions by the state and school districts to cover the cost of benefits earned by public employees and their accumulated liabilities, the SEC said.

Only Illinois had a lower pension funding status than Kansas, according to a 2010 report by the Pew Center on the States.

Neither the finance authority nor the Kansas Department of Administration, which advised the authority of material changes to state finances, determined that additional disclosure regarding the pension fund in the bond offering statement was necessary, the SEC said. 

New Procedures


Kansas has adopted new policies and procedures to ensure it's making the appropriate disclosures about its pension liabilities, the SEC said. The state mandated closer communication and cooperation among agencies responsible for preparing bond disclosures and established a disclosure committee, the agency said.

The SEC didn't seek financial penalties or make claims of intentional misconduct, according to Jim Clark,the state's secretary of Administration.

"We remain committed to complying with all disclosure requirements," Clark said in a statement.

Kansas boosted employee contributions to the pension fund and created a new plan for employees hired after 2015, reducing projected pension debt by $500 million, Governor Sam Brownback said in the same statement.

"We have improved transparency in the reporting system and taken decisive actions to meet our existing obligations and maintain the trust of our state workers and retirees," Brownback said.

To contact the reporter on this story: Martin Z. Braun in New York at mbraun6@bloomberg.net

To contact the editors responsible for this story: Stephen Merelman at smerelman@bloomberg.net Pete Young, Mark Tannenbaum 

via Bloomberg

Wednesday, July 23, 2014

Hedge Funds Accused of Screwing Americans out of Billions of Dollars in Taxes

(Congressional oversight not needed, saving hundreds of $$ under our honor system.)
Wednesday, July 23, 2014, AllGov
James H. Simons
Senate investigators have determined that some of the most powerful investment firms on Wall Street schemed their way into billions of dollars in tax breaks.

A report (pdf) by the U.S. Senate's Permanent Subcommittee on Investigations says more than a dozen hedge funds used "basket options" over a 15-year period to avoid paying hundreds of billions in taxes they would otherwise have owed to the U.S. Treasury.

One firm in particular, Renaissance Technologies, used complex financial structures created by founder James H. Simons to capture its $6 billion in savings. Simons—who worked as a code breaker for the National Security Agency in the 1960s—retired from Renaissance in 2010 and currently serves as its non-executive chairman.

Other basket options were devised by Barclays and Deutsche Bank, and other hedge funds that took advantage of them included Steven A. Cohen's SAC Capital Advisors (now known as Point72 Asset Management) and George Weiss Associates. SAC changed its name as part of its guilty plea with the government on insider trading charges.

"These banks and hedge funds involved in this case used dubious structured financial products in a giant game of 'let's pretend,' costing the Treasury billions and bypassing safeguards that protect the economy from excessive bank lending for stock speculation," Senator Carl Levin (D-Michigan), chairman of the subcommittee, told the media.

Alexandra Stevenson at The New York Times described the basket options as structured accounts "that allowed hedge funds to bypass taxes on short-term trades."

The two banks noted by investigators "used the options to build special accounts for their hedge fund clients in their own names and claimed they owned the assets when it was, in fact, the hedge fund clients that exercised full control of the assets, determining each trade and reaping all the profits," Stevenson added.

The structure of the basket options also allowed the hedge funds to borrow up to $17 for every dollar in an account rather than the 50 cents on the dollar that broker-dealers are restricted to according to limits that go back to the 1930s.

The Internal Revenue Service (IRS) has been investigating Renaissance Technologies' use of these tax structures for six years, ever since the Securities and Exchange Commission alerted them to the practice.

"To say [the IRS has] not moved swiftly is an understatement," said Levin.

Renaissance's legal team that is defending the firm against the government's investigation includes Kenneth W. Gideon, a former IRS chief counsel and former assistant Treasury secretary for tax policy.

When asked at a 2008 Congressional hearing if he would "support repealing this tax loophole" and pay the customary tax rate, Simons responded, "That would be OK with me."

-Noel Brinkerhoff, Danny Biederman

To Learn More:


Senate Inquiry Faults Hedge Funds' Tax Strategy (by Alexandra Stevenson, New York Times)

Simons Strategy to Shield Profit from Taxes Draws IRS Ire (by Zachary R. Mider and Jesse Drucker, Bloomberg)


Monday, March 31, 2014

Friday, November 22, 2013

Government Excuses for Letting the Banksters Off Scot-Free Are Bogus

 
The Failure To Punish Wall Street Criminals Is The Core Cause Of Our Sick Economy

U.S. Attorney General Eric Holder said:
I am concerned that the size of some of these institutions [banks] becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy

Monday, November 4, 2013

Wall Street Algorithm Code Released *vid*



VPRO Backlight has just released the documentary we did with them earlier this year.  Wall Street Code is about the blatant and planned fixing of, specifically, the US financial markets.  After meeting with Haim Bodek and being introduced by him to the guys at Sang Lucci, we decided to ban together and contact Marije.  

Tuesday, September 10, 2013

Silver Manipulation - HSBC Connection To US Mint? Christian Garcia & Mike Maloney - YouTube

The absence of whistleblowers coming out of the banking cartel is an indicator how void their people are of conscience and morality. Will the Congressional committee chairman having the Oversight mandate for the US Mint please step forward.


Published on Sep 10, 2013
http://www.goldsilver.com See Christian's original video here: http://www.youtube.com/watch?v=ll-9un...

For more information about Gold & Silver or Mike Maloney, visit the Why Gold & Silver channel and subscribe: http://goo.gl/emXEB

Friday, June 7, 2013

Here Is Today's 482 Millisecond NFP Leak, The Subsequent Gold Slam And Trading Halts In Treasurys And ES



On Monday we brought to you proof of a 15 millisecond frontrunning of the Mfg ISM number by what turned out to be HFT clients of Reuters which admitted subsequently it had "inadvertently" leaked the number to select clients. However, that was child's play compared to the absolute market farce that happened today which we can visualize courtesy of Nanex, and which impacted gold, ES, and Treasury Futures altogether. 

Monday, June 3, 2013

The Big Banks and Commodities Future Trading Commission Conspired to Hide Speculation from Congress

Big Banks and Government Agency Have Been Cooperating In Market Manipulation for Decades

 

One of our favorite topics is the many ways that big banks manipulate prices.

Last night, Rolling Stone financial writer Matt Taibbi gave some very interesting details about how the big banks have gamed commodities prices.

Wednesday, February 13, 2013

Revolving Door at SEC is in a Whirl as Hundreds Hired by Industry they Regulated

Crony Capitalism, Corruption, Corporate Nepotism...pick one, or All

Wednesday, February 13, 2013
Charged with regulating Wall Street, the Securities and Exchange Commission (SEC) has become a launching pad for former agency employees—by the hundreds—to become part of the industry they once oversaw.

Sunday, December 23, 2012

Silver Update 12/22/12 Mini Flash Crash *video*

I subscribe to Brother John's videos updates, but confess I don't always have time. When I do watch though, I always ask myself "what have I missed previously?" He's as honest as anyone out there, but like all of us he can be wrong. His insight to physical silver is worth the watch. Fascinating look back comparing the metal spikes back in 1980 with today!

In this episode his analysis of Tulving alone is worth your time.

Monday, November 19, 2012

SEC Whistleblower Suit: Sex, Lies, Stupidity, Oh My!!

The message conveyed in all these scandals is: "If you're an honorable and principled person with integrity, your government doesn't want you. This policy particularly applies to to the higher political and appointed offices."

Posted by Larry Doyle on November 19, 2012 7:56 AM

If the whistleblower complaint I read this weekend did not have the United States Securities and Exchange Commission and Mary Schapiro as defendants, one might have thought it belonged in a cheap tabloid at a supermarket checkout.

Algorithms, Bullion and Criminals: The ABC’s of Understanding Gold and Silver

The smackdown of the precious metals and their respective mining stocks late last week for no broad reason or explanation caused us to renew our repetitive query - WHY? And HOW was it done?

Wednesday, August 22, 2012

JPMORGAN CHASE: SCHEDULE OF LOANS PURCHASED FROM WAMU DOES NOT EXIST!

...NO ASSIGNMENTS OF MORTGAGE, NO ALLONGES OR ANY EVIDENCE OF TRANSFERRING OWNERSHIP OF LOANS FROM WAMU TO CHASE
August 21, 2012

FDIC Gives WaMu Documents To
Media,  But They're Blacked Out
Confirming, under oath and in print what we already suspected: there is no schedule of mortgage loans evidencing what JPM allegedly “purchased” from the FDIC in connection with the failure of WaMu.

Thursday, August 2, 2012

Stunning Crimes of the Big Banks: Worse than Your Wildest Imagination

Preface:  Not all banks are criminal enterprises.  The wrongdoing of a particular bank cannot be attributed to other banks without proof.  But – as documented below – many of the biggest banks have engaged in unimaginably bad behavior.

Wednesday, August 1, 2012

Algorithims Gone Wild *video*

Ride 'Em Algos!

Still scratching your head over what happened this morning (this would be everyone at the SEC but not their porn webstream vendors - even they by now realize just how broken the market is)? Don't be  - courtesy of Dennis Dick and Premarket Info, here is a 20 minute video explanation parsing the tape and showing precisely what happened that impacted nearly 150 stocks.

Thursday, June 21, 2012

The Scam Wall Street Learned From the Mafia

How America's biggest banks took part in a nationwide bid-rigging conspiracy - until they were caught on tape
Illustration by Victor Juhasz
national affairsSomeday, it will go down in history as the first trial of the modern American mafia. Of course, you won't hear the recent financial corruption case, United States of America v. Carollo, Goldberg and Grimm, called anything like that. If you heard about it at all, you're probably either in the municipal bond business or married to an antitrust lawyer. Even then, all you probably heard was that a threesome of bit players on Wall Street got convicted of obscure antitrust violations in one of the most inscrutable, jargon-packed legal snoozefests since the government's massive case against Microsoft in the Nineties – not exactly the thrilling courtroom drama offered by the famed trials of old-school mobsters like Al Capone or Anthony "Tony Ducks" Corallo.

Friday, June 1, 2012

SEC: Taking on Big Firms is 'Tempting,' But We Prefer Picking on Little Guys

 
POSTED:
sec
The U.S. Securities and Exchange Commission building in Washington, DC.
Chip Somodevilla/Getty Images
 
If you want to see a perfect example of how completely broken our regulatory system is, look no further than a speech that Daniel Gallagher, one of the S.E.C.’s commissioners, recently gave in Denver, Colorado.

It’s a speech whose full lunacy is hard to grasp without some background.

It’s by now been well-established that the S.E.C.’s performance in policing Wall Street before, after, and during the crash has been comically inept. It would be putting it generously to say that the top cop on the financial services beat has demonstrated particular incompetence with regard to investigations of high-profile targets at powerhouse banks and financial companies. A less generous interpretation would be that the agency is simply too afraid, too unwilling, or too corrupt to take on the really dangerous animals in this particular jungle.

The S.E.C.’s failure to make even one case against a high-ranking executive involved in the mass frauds leading to the 2008 crash – compare this to the comparatively much smaller and less serious S&L crisis twenty years earlier, when the government made 1,100 criminal cases and sent 800 bank officials to jail – became so conspicuous that by the end of last year, the “No prosecutions of top figures” idea became an accepted meme in mainstream news media coverage of the economic crisis.

The S.E.C. in recent years has failed in almost every possible way a regulator can fail to police powerful criminals. Failure #1 was that it repeatedly fell down on the job even when alerted to problems at big companies well ahead of time by insiders. Six months before Lehman Brothers collapsed, setting off a chain reaction of losses that crippled the world economy, one of Lehman’s attorneys, Oliver Budde, contacted the S.E.C. to warn them that the firm had understated CEO Dick Fuld's income by more than $200 million; the agency blew him off. There were similar brush-offs of insiders with compelling information in cases involving Moody’s, Chase, and both of the major Ponzi scheme scandals, i.e. the Bernie Madoff and Allen Stanford cases.

The S.E.C.’s attitude toward whistleblowers at powerhouse companies has not just been aloof or indifferent, it’s been downright hostile at times. Whistleblowers commonly report being treated as though they're the criminal. The most notorious example probably involved Peter Sivere, a compliance officer at Chase who years ago went to the S.E.C. to complain that Chase was withholding an incriminating email from the agency, which was investigating an illegal trading practice. When Sivere contacted the S.E.C. with the documents, he asked if he would be eligible for an award; they told him no, and he gave them the documents anyway. Subsequently, Sivere was fired by Chase because, in the words of Chase’s attorneys, Sivere had "sought payment from the SEC to provide documents and information to them.” Finish reading>>

Wednesday, May 23, 2012

An $8bn Loss Or Was JPMorgan 'Unhedged, Long-And-Wrong'

...Post-LTRO2?

Posted by Charleston Voice, 05.23.12 

 JP Morgan Crimes & Misdemeanors Dossier

A tough read for people like me, but I'm coming along more each day...

Tyler Durden's picture



The full set of DTCC data is in (that is the repository for reporting CDS data) and reading between the lines provides us with some significant color on what was occurring at JPM's CIO office. For the Cliff Notes' version - see the summary at the bottom...

Tuesday, May 22, 2012

JP Morgan and the Failure to Regulate Wall Street Fraud *vid*

Posted by Charleston Voice, 05.22.12

Regulators from the CFTC and the SEC (Gary Gensler and Mary Schapiro) were on Capitol Hill today to talk about how the overhaul of that multi-trillion dollar, opaque, unregulated over the counter derivatives market is going. As you know, derivatives were at the center of the JP Morgan trading blow-up, so the loss has seemingly reignited scrutiny from Washington. But here's a caveat before you get too hopeful: guess who has reportedly been the single biggest donor to the chair of this senate committee? Ding. Ding. It's JP Morgan.

JPM Hires Ex-SEC Chief Enforcement Officer To Help Prop Trading Loss Damage Control


Tyler Durden's picture


For anyone who had doubts that the JPM CIO debacle was only just starting, the just broken news by Bloomberg that the firm has hired former SEC enforcement chief William McLucas "to help respond to regulatory probes of the firm’s $2 billion trading loss" should put all doubts to rest.