A paper titled Central Bank Solvency and Inflation was published by the New York Fed's Liberty Street Economics group The paper claims, "As long as the central bank can affect the return on these short-term assets by adjusting the IOER, controlling inflation with a large balance sheet seems no different than it was before the Great Recession." I'll publish additional commentary on this paper later.
Friends Charged With Making $1.1M From Insider Trading On Cooper Tire and Rubber (CTB) The SEC charged Amit Kanodia, of Brookline, Massachusetts, an entrepreneur and private equity investor, and Iftikar Ahmed, of Greenwich, Connecticut, a general partner at a venture capital firm, with insider trading on the proposed acquisition of Cooper Tire and Rubber (NYSE: CTB) by Apollo Tyres Ltd. (NSE: APOLLOTYRE).
CFTC Accuses Kraft (KRFT) Foods Group, Inc. and Mondelēz Global LLC of Market Manipulation
The U.S. Commodity Futures Trading Commission
(CFTC) announced a civil enforcement complaint against
Kraft Foods Group, Inc. and Mondelēz Global LLC for
manipulation of wheat and
wheat futures prices. In response to high cash wheat
prices in late Summer 2011, both parties "developed, approved, and
executed" a strategy to buy $90 million of
December 2011 wheat futures. The CFTC complaint alleges that Kraft and
Mondelēz made this trade to send a signal to the market resulting in
lower cash wheat prices. When the price
shifts occurred Kraft and
Mondelēz earned over $5.4 million in profits. This was only one of
several allegations made in the complaint.
Timothy Scronce, an executive at PCTEL greed to settle SEC charges against him for using "false accounting entries to
inflate TelWorx’s quarterly revenues and earnings in the months leading
up to the purchase to inflate the price PCTEL paid for the companies."The U.S. Commodity Futures Trading Commission
(CFTC) announced a civil enforcement complaint against
Kraft Foods Group, Inc. and Mondelēz Global LLC for
manipulation of wheat and
wheat futures prices. In response to high cash wheat
prices in late Summer 2011, both parties "developed, approved, and
executed" a strategy to buy $90 million of
December 2011 wheat futures. The CFTC complaint alleges that Kraft and
Mondelēz made this trade to send a signal to the market resulting in
lower cash wheat prices. When the price
shifts occurred Kraft and
Mondelēz earned over $5.4 million in profits. This was only one of
several allegations made in the complaint.Justice In The Scott Rothstein’s Ponzi Scheme. Andrew Ceresney, Director of Enforcement at the SEC, provided a statement on the jury verdict in the trial of George Levin, a man that raised $157 million from 150 investors for Scott Rothstein’s Ponzi Scheme. Rarely do these cases go to litigation so this is surprising. "We will continue to hold accountable those who raise monies from investors through fraudulent means," said Ceresney.
The SEC announced that it was imposing a preliminary injunction freeing all assets of American Energy Development Corp.
(OTC: AEDC) and claims that David Craven and Alexander J. Craven
(father and son) are guilty of manipulating the markets for gain in the
stock AEDC. British
citizens, the two are both residing in Switzerland and England,
respectively. Together, they gained
control of over 87% of the shares of AEDC and inflated the share price
using "wash and matched trading". The two allegedly used $1.6 million
for a promotional
campaign featuring a 16-page mailer mailed out to 1.2
million U.S. residents. The Cravens then dumped over $4 million of the
stock on investors via overseas
trading accounts.
