BrokerDealer Goldman Sachs ($GS) Accused of Underwriting Boy’s Club Culture; Suit Stipulates Strip Club Mentality

Posted on July 2, 2014 by admin

Goldman Sachs Group Inc. (GS) , the global investment bank/broker-dealer was accused of widespread gender discrimination and promoting a “boy’s club” atmosphere that included bouts of binge drinking and trips to strip clubs, as two former female employees seek to expand their lawsuit against the firm with new evidence.

Photographer: Richard Perry/The New York Times via Redux. H. Cristina Chen-Oster, right, and Shana Orlich in New York City in this Sept. 15, 2010 file photo.

As reported by Bloomberg LP, “The women asked a federal judge in Manhattan today to let them sue on behalf of current and former female associates and vice presidents. Support for their claims includes statements of former Goldman Sachs employees, expert statistical analyses and evidence on earnings and promotions from the firm’s own records, they said in a court filing.”

In the suit, initially filed in 2010, the plaintiffs stipulate that female vice presidents of one of the world’s biggest banks earned 21 percent less than men and female associates made 8 percent less. About 23 percent fewer female vice presidents were promoted to managing director of the New York-based bank relative to their male counterparts, they said.

Goldman Sachs has denied the women’s claims and is fighting the case.

BrokerDealer.com: JPMorgan’s Jamie Dimon Diagnosed With Cancer

Posted on July 2, 2014July 2, 2014 by admin

BrokerDealer.com blog update: JP Morgan CEO Jamie Dimon, indisputably one of the global banking industry’s most recognized leaders announced via internal memo to the investment bank/broker-dealer’s employees that he was recently diagnosed with throat cancer and is scheduled to undergo treatment beginning immediately.

JP Morgan CEO Jamie Dimon

According to Dimon’s e-mail, the cancer is curable and “the prognosis from doctors is excellent” after multiple tests confirmed the cancer is confined in the lymph nodes on the right side of his neck. The memo said Dimon will undergo eight weeks of chemotherapy and radiation at Memorial Sloan Kettering Hospital and curtail his travel, but he does not plan to take time off from his day-to-day leadership of the firm.

Dimon’s announcement came on the very day he celebrates his 10th anniversary at the helm of the bank, which makes him the longest-tenured CEO among the major U.S. banks. That tenure, which began when JPMorgan acquired Dimon-led Bank One a decade ago, has had plenty of highs and lows.

Single Winner of All Bitcoins in U.S. Auction

Posted on July 2, 2014 by admin

BrokerDealer.com/blog update courtesy of extracts from today’s NYT DealBook

The United States Marshals Service announced on Tuesday that one bidder had won all of the nearly 30,000 Bitcoins auctioned on Friday.

“The U.S. Marshals Bitcoin auction resulted in one winning bidder,” Lynzey Donahue, a spokeswoman for the Marshals Service, said in a statement. “The transfer of the Bitcoins to the winner was completed today,”

But the Marshals Service did not identify the winner or disclose the winning bid.

In instructions on its website and to bidders, the Marshals Service had said it would alert both winners and losers of the auction on Monday by 5 p.m. Eastern time. The deadline for winning bidders to transfer funds to the agency, according to the website, was 5 p.m. on Tuesday.

At least a handful of bidders were sent emails on Monday notifying them that they had not won the auction. So far, many prominent bidders have said they were outbid, including a syndicate run by SecondMarket, Pantera Bitcoin, the Bitcoin Shop and Coinbase. Rangeley Capital and Alex Waters at CoinApex also said they did not win any Bitcoins.

“While we are disappointed that our syndicate did not emerge as a winner in the auction, we are pleased to see such strong interest from other bidders,” Barry Silbert, chief of SecondMarket, said in a statement on Monday. “The auction was a clear success and the result quite positive for Bitcoin.” Mr. Silbert said his syndicate had received 186 bids from 42 bidders.

The Marshals Service said on Monday that 45 registered bidders had participated in the event and that the agency had received 63 bids over the course of the auction.

Since the Marshals Service first announced the auction in early June, there have been a number of missteps. A list of potential bidders was accidentally released on June 18 in an email from the agency. And apparent typographical errors in the initial instructions posted on the Marshals Service’s website made it unclear when the registration deadlines were.

Some bidders also said other aspects of the process had been vague. Mr. Waters, for example, said on Monday that he had bid on one block of 3,000 Bitcoins at $403 each, far below the market price of Bitcoin, because he thought syndicates would not be permitted by the Marshals Service.

The full article can be found at NYT DealBook.

Rottapharm, an Italian Drug Maker, Sets Price Range for IPO

Posted on July 2, 2014 by admin

BrokerDealer.com/blog update courtesy of extracts from today’s NYT DealBook

LONDON — The Italian drug maker Rottapharm said on Tuesday that it expected an initial public offering (IPO) of its shares later this month to value the company at up to 1.8 million euros, or about $2.46 billion.

Rottapharm, which operates under the name Rottapharm|Madaus, said that it expected to price its offering of 50 million shares at €7.25 to €9 a share. The bottom end of the price range would value the company at about €1.45 billion.

The offering represents about 25 percent of Rottapharm’s share capital, and it expects to list on the Mercato Telematico Azionario of the Borsa Italiana exchange in Milan. The company said on Tuesday that Italian securities regulators had signed off on its listing.

“Through the IPO, we will have the opportunity to present to the financial community the innovative and distinctive values of our business model,” Luca Rovati, Rottapharm’s chairman and chief executive, said in a statement. “Our entry into the capital markets is consistent with our growth strategy through new acquisitions, the launch of new products and expansion into new markets.”

About 5 percent of the offering, or about 2.5 million shares, will be sold to retail investors in Italy. The rest will be sold to institutional investors. The offer can be increased by up to another 10 million shares, depending on demand.

The shares are being sold by an investment vehicle controlled by the Rovati family, Rottapharm’s owners. The family will remain the drug maker’s largest shareholder after the offering.

The offer period is expected to end on July 10.

Founded in 1961, Rottapharm is the maker of Dona, which is used to manage pain associated with osteoarthritis; Legalon, a treatment for liver disorders; and Reparil, an anti-inflammatory and pain reducer. The company employs more than 2,000 employees in 85 countries worldwide.

The full article can be found at NYT DealBook.

Finra Boots Out Broker-Dealer, Bars CEO for Ponzi Scheme Targeting Pro Athletes

Posted on July 1, 2014 by admin

BrokerDealer.com blog update courtesy of InvestmentNews.com (subscription required, free registration)

Firm, chief executive ordered to pay $13.7 million in restitution to 59 investors

Finra has barred a broker-dealer and its founder for allegedly defrauding a number of current and former NFL and NBA players out of nearly $14 million as part of a Ponzi scheme.

The Financial Industry Regulatory Authority Inc. expelled Success Trade Securities, an online brokerage, and its founder, Fuad Ahmed, for raising money for the company parent company, Success Trade Inc., through purportedly fake promissory notes.

The notes typically had a 12.5% interest rate and had a term of 36 months, according to Finra. Because of the financial condition of the parent company, there was little chance they would be paid back, Finra said. Instead, the funds went to pay Mr. Ahmed’s personal expenses, including the lease on a Range Rover and balances on personal credit cards and clothes, Finra alleged.

A report from Yahoo Sports last year noted that clients who bought Success Trades’ notes included Detroit Pistons guard Brandon Knight, Cleveland Browns cornerback Joe Haden, San Francisco 49ers tight end Vernon Davis, former Washington Redskins running back Clinton Portis and Chicago Bears defensive end Adewale Ogunleye.

When the notes became due, Mr. Ahmed attempted to persuade the investors to extend the terms, in some cases promising that the company would be listing on a European stock exchange soon. Continue reading →