State Street, Accused of Cheating California Pension Giants, Is Sued
The bank is accused of inflating prices on foreign exchange trades for CalPERS and CalSTRS, two of the largest pension funds in America.
Regulation
Dark Pools—Opaque Off-Exchange Markets—Face Scrutiny
Dark pools, often a place for institutional investors to trade anonymously in large quantities, are now under pressure from the SEC.
Former SEC Chairman Levitt Calls for Probe of Public Pensions
Following scandal at New York’s Common Fund and CalPERS, former Chairman Arthur Levitt is calling on President Obama to launch a countrywide investigation into middlemen and public pension funds.
As Europe Regulates, Study Shows Pensions Could Be Losers
A study by Charles River Associates states that European pensions could see limited investment options and weaker returns due to the draft directive on alternative asset management.
Eyeing His Next Target, Cuomo Goes after Sole Trustees
Moving his gaze from placement agents to the men and women who can exert uninhibited control over state pension systems, New York Attorney General Andrew Cuomo moves to curtail the power of sole trustees.
With Interest Rates Low, Brazil Pensions Get Okay To Diversify
Brazilian pension funds will now be able to move out of their traditional government and corporate debt holdings and into other, more esoteric, investments.
As Regulators Step Up, Securities Lending Comes Under the Spotlight
Regulation is a certainty in many different niche financial markets, and so it was only a matter of time before the SEC turned its gaze toward securities lending, which saw seemingly risk-free practices turn risky in 2008.
As Custodians Search for Profits and the EU Regulates, Prices Rise
With higher-margin services on the decline, European custodians have started to raise basic rates, and the trend is expected to continue if proposed depository rules are enacted.
Knowing They Were Selling “Crap,” UBS under Siege in CDO Case
Despite internally acknowledging that some of their CDOs were “crap” and “vomit,” UBS still sold such instruments to unwitting investors—and now are being sued for doing so.
To Entice Foreign Capital, China Relaxes Regulations
Although still miniscule in nature, the Chinese Qualified Foreign Investor (QFII) program will—if proposed regulation passes—raise limits, lower minimums, and reduce lockups for foreign institutions, a sign of encouragement for foreigners wishing to pour money into the country.
Offered More Votes, Institutions Reject UK Shareholder Proposals
Institutions, despite being offered greater voting power in recent London proposals, are balking at a two-tiered shareholder system.
In the United Kingdom, Pensions Join Alternatives Battle
With European regulators looking to tighten the alternative investment collar, UK pension funds – who now, more than ever, need the excess returns that alternatives are purported to provide – have stepped into the battle.