SEC Charges Deutsche Bank With Misstating Financial Reports During Financial Crisis
The Securities and Exchange Commission today charged Deutsche Bank AG with filing misstated financial reports during the height of the financial crisis that failed to take into account a material risk for potential losses estimated to be in the billions of dollars. Deutsche Bank agreed to pay a $55 million penalty to settle the charges. An SEC investigation found that Deutsche Bank overvalued a portfolio of derivatives consisting of “Leveraged Super Senior” (LSS) trades through which the bank purchased protection against credit default losses. Because the trades were leveraged, the collateral posted for these positions by the sellers was only…
Read MoreSEC Announces Charges Against Investment Firm and Two Executives Accused of Defrauding Police and Firefighter Pension Funds
The Securities and Exchange Commission today announced fraud charges against an Atlanta-based investment advisory firm and two executives accused of selling unsuitable investments to pension funds for the city’s police and firefighters, transit workers, and other employees. The SEC’s Enforcement Division alleges that Gray Financial Group, its founder and president Laurence O. Gray, and its co-CEO Robert C. Hubbard IV breached their fiduciary duty by steering these public pension fund clients to invest in an alternative investment fund offered by the firm despite knowing the investments did not comply with state law. Georgia law allows most public pension funds in…
Read MoreSEC Names Rebecca Olsen Deputy Director of Municipal Securities Office
The Securities and Exchange Commission today announced that Rebecca J. Olsen has been named deputy director in the agency’s Office of Municipal Securities, having served as chief counsel since April 2014. Ms. Olsen replaces Jessica Kane who was announced as director of the office today. In her new position, Ms. Olsen will continue to play a leading role in overseeing all aspects of the Office of Municipal Securities. “Rebecca’s extensive experience in municipal securities will be invaluable as she takes on this new leadership role,” said SEC Chair Mary Jo White. “We will continue to rely on her very sound…
Read MoreSEC Names Jessica Kane Director of Municipal Securities Office
The Securities and Exchange Commission today announced that Jessica Kane has been named the director of the agency’s Office of Municipal Securities, having served as deputy director since April 2014. Ms. Kane replaces former director John Cross. As deputy director, Ms. Kane oversaw all aspects of the office. She played a leading role in the implementation and operation of the municipal advisor registration regime, including the issuance of staff interpretive guidance on certain aspects of the SEC’s final rules for municipal advisor registration. Ms. Kane also led efforts in the oversight of Municipal Securities Rulemaking Board (MSRB) rulemaking, including the…
Read MoreSEC Proposes Rules to Modernize and Enhance Information Reported by Investment Companies and Investment Advisers
The Securities and Exchange Commission today proposed rules, forms and amendments to modernize and enhance the reporting and disclosure of information by investment companies and investment advisers. The new rules would enhance the quality of information available to investors and would allow the Commission to more effectively collect and use data provided by investment companies and investment advisers. “These recommendations will vastly improve the type and format of the information that funds provide to the Commission and to investors,” said SEC Chair Mary Jo White. “Investors will have better quality and greater access to information about their fund investments and…
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