SEC Charges Goldman Sachs With Improper Securities Lending Practices
The Securities and Exchange Commission today announced that Goldman, Sachs & Co. has agreed to pay $15 million to settle charges that its securities lending practices violated federal regulations. According to the SEC’s order instituting a settled administrative proceeding, broker-dealers such as Goldman Sachs are regularly asked by customers to locate stock for short selling. Granting a “locate” represents that a firm has borrowed, arranged to borrow, or reasonably believes it could borrow the security to settle the short sale. The SEC finds that Goldman Sachs violated Regulation SHO by improperly providing locates to customers where it had not performed…
Read MoreSEC Charges State Street for Pay-to-Play Scheme
The Securities and Exchange Commission today announced that State Street Bank and Trust Company agreed to pay $12 million to settle charges that it conducted a pay-to-play scheme through its then-senior vice president and a hired lobbyist to win contracts to service Ohio pension funds. An SEC investigation found that Vincent DeBaggis, who headed State Street’s public funds group responsible for serving as custodians or sub-custodians to public retirement funds, entered into an agreement with Ohio’s then-deputy treasurer to make illicit cash payments and political campaign contributions. In exchange, State Street received three lucrative sub-custodian contracts to safeguard certain funds’…
Read MoreSEC Charges 11 Bank Officers and Directors With Fraud
The Securities and Exchange Commission today announced fraud charges against 11 former executives and board members at Superior Bank and its holding company involved in various schemes to conceal the extent of loan losses as the bank was faltering in the wake of the financial crisis. The SEC alleges the high-ranking officers and directors schemed to mislead investors and bank regulators by propping up Superior Bank’s financial condition through straw borrowers, bogus appraisals, and insider deals. Specifically they improperly extended, renewed, and rolled over bad loans to avoid impairment and the need to report ever-increasing allowances for loan and lease…
Read MoreSEC Adopts Rules Implementing FAST Act Provisions
The Securities and Exchange Commission today announced that it approved interim final rules implementing two provisions of the Fixing America’s Surface Transportation (FAST) Act, adopted by Congress in December, that revise financial reporting forms for emerging growth companies and smaller reporting companies. The Congressionally mandated rules revise Forms S-1 and F-1 to provide that as long as emerging growth companies’ registration statements include all required financial information at the time of the offering, they will be allowed to omit certain historical period financial information prior to the offering. In addition, the rules revise Form S-1 to allow smaller reporting…
Read MoreJulie M. Riewe, Co-Chief of Asset Management Unit, to Leave SEC After 10 Years of Service
The Securities and Exchange Commission today announced that Julie M. Riewe, Co-Chief of the Enforcement Division’s Asset Management Unit, is planning to leave the agency next month. As co-head of the unit for the past two-and-a-half years, Ms. Riewe has overseen a staff of nearly 80 attorneys, industry experts, and other professionals responsible for conducting investigations into investment advisers, investment companies, and private funds. Co-Chief Marshall Sprung will continue to lead the unit following Ms. Riewe’s departure. “Julie is incredibly intelligent, tenacious, and skilled at developing cases,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “She has…
Read More