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).
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.