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1208 days ago
Shares of Bristol-Myers Squib have tanked in recent days thanks to a barrage of bad news including a federal probe into the recent settlement of a patent dispute and increased competition from a generic version of its popular Plavix blood thinner. But now regulators are examining whether some investors may have improperly benefited from the company's recent misfortunes, CNBC has learned. At issue: A huge run up in "short interest" in the company's stock just prior to all the negative publicity that caused shares of Bristol-Myers to slide more than 19% in recent weeks. Short interest is the amount of stock that is sold short, which allows investors to make money when stock craters. Following a complaint by the company, officials at the NYSE are now examining whether some investors may have had advanced warning of the company's problems when they made their bet, according to people with knowledge of the NYSE's activities. ...
1215 days ago
When the Securities and Exchange Commission closes a case without bringing charges, targets usually get a private, form letter from the agency alerting them that they've been cleared and the case is closed. But that all might change for two high-profile targets of the commission, Pequot Capital and Morgan Stanley CEO John Mack. CNBC has learned that the commission is considering the unusual, and some would say, unprecedented move of not just officially alerting Pequot and Mack that they are cleared of possible insider trading charges, but also releasing all the evidence in the probe. The move comes after a former SEC attorney Gary Aguirre went public with charges that he was fired from the SEC when he sought Mack's testimony in an insider trading case against Pequot. Aguirre said he had reason to believe that Mack gave Pequot an insider tip on a pending merger that allowed Pequot, a massive hedge fund run by Mack's good friend Arthur Samberg, make millions of dollars in ...
1217 days ago
For almost three years, Wall Street has been anticipating a major courtroom showdown that would pit "The Enforcer," New York Attorney General Eliot Spitzer, against famed defense attorney Brendan Sullivan in the Dick Grasso over-compensation case. But CNBC has learned that o ne of the consequences of a recent ruling is that Grasso will lose Sullivan as his attorney once the trial begins sometime next month . The move comes after State Supreme Court Judge Charles Ramos moved up the trial date of the case to September 5 from October 30, putting what will likely be a six-week courtroom battle in the middle of another case Sullivan is already committed to: The third retrial of former Cendant chairman Walter Forbes by the US Attorney's office in New Jersey. Grasso is being charged by Spitzer of violating the state not-for-profit law after being awarded a $140 million pay package that led to his resignation as ...
1221 days ago
Senate Judiciary Committee Chairman Arlen Specter is ramping up his investigation of hedge funds by calling on SEC Chairman Christopher Cox for a private meeting to discuss what he believes is the agency's poor record in cracking down on fraud and abuse in the business, CNBC has learned. The meeting, which could take place as early as next week, comes after a former SEC investigator, Gary Aguirre, said he was fired from the commission when he tried to take testimony from Morgan Stanley CEO John Mack in an investigation of possible insider tradingby the large hedge fund Pequot Capital. Aguirre has said that Mack was the possible leaker of insider information to Pequot, a charge that Mack denies, and one that at least initially the commission didn't take seriously. But the SEC recently did an about-face, and has now called Mack to give a deposition in the Pequot case. CNBC has learned that Mack will give his testimony next week, and according to people close to the case, the ...
1224 days ago
Ken Langone has been keeping a lower profile in his bid to convince a New York State court to throw out a civil action by the state's attorney general Eliot Spitzer, who says he misled the New York Stock Exchange board over Dick Grasso's $140 million pay package. But all that is about to change as lawyers for Langone unleash a blistering attack on the attorney general and his case in court papers obtained by CNBC. These arguments will be presented on Wednesday to New York State Supreme Court Judge Charles Ramos, who is weighing Langone motion to have the case dismissed. A decision could come in the coming days or weeks. At issue for Langone is a civil charge by Spitzer who says the New York financier misled the board of the NYSE when he was the chairman of its compensation committee that granted some of the biggest paydays to Grasso. Spitzer is also suing Grasso, who resigned as NYSE chief in 2003, to have him return as much as $100 million of ...
