Citigroup To Settle HF Fraud Lawsuit for $13.5M
The bank allegedly deceived investors on the state of its liquidated corporate special opportunities hedge fund in 2007, according to court documents.
Regulation
Insurer Sued Over Fees for Funds it Doesn’t Manage
Investors are unhappy with fees charged by State Farm Investment Management for target-date funds run by BlackRock.
Guggenheim Fined $20M for Conflict of Interest Charges
The firm’s subsidiary, Guggenheim Partners Investment Management, failed to report a $50 million loan from a client to a senior executive in 2010, the SEC said.
Why Asset Managers Shouldn’t Ignore the SEC’s PIMCO Probe
Bond market illiquidity and mega-manager leverage foster compliance issues—and not just for PIMCO, Morningstar argues.
SEC Warns PIMCO Over Potential Legal Action
An investigation into valuations in the PIMCO Total Return Active ETF’s portfolio could prompt civil action against the asset manager.
JP Morgan in $388M MBS Settlement
Two pension funds are among investors that have settled with the investment bank over the sale of mortgage-backed securities.
Fund Managers Dismiss IMF Stability Warnings
Assertions that mutual funds and management groups pose risks to the wider financial system have been disputed by an industry body.
Why Plan Sponsors Make Bad Plan Designers
Employer incentives + member behavioral biases = poor DC outcomes, policy researchers argue.
Oberlin Endowment Chair Resigns Following Fraud Charges
After nearly two weeks of silence, Oberlin College announced that its endowment chair—charged with fraud by the SEC—has resigned.
UK Regulator Drops London Whale Trader Case
Bruno Iksil will face no further action from the Financial Conduct Authority.
Forced Collaboration for UK Pensions
Government shelves forced passive plans, but new rules could instead push public pensions into investment collaborations.
Oberlin Endowment Chair Charged with Fraud
His hedge fund AlphaBridge fabricated asset valuations and overcharged clients, the SEC alleges.
KKR Fined $30M for Breach of Fiduciary Duty
The SEC said the private equity powerhouse unfairly charged its limited partners $17 million in fees for failed buyout deals over six years.
We’re Not ATMs, Pensions Warn Politicians
Dutch pension giants APG and PGGM have set out how European policymakers can get investor support for increased local investment.
Insider Trading Watchdog Moves to Hedge Fund
Elliott Management has hired Manhattan’s deputy district attorney as its general counsel.