The Good, The Bad, & The Ugly – Week of 11/26/12

The Good

  • The Chicago teachers’ pension fund is launching an investigation of the financial impact of the manipulation of LIBOR rates on the fund, and may be joined by other Chicago pension funds. Pensions & Investments, 11/29/12
  • The SEC is finally considering charges against hedge fund superstar Steve Cohen’s secretive SAC Capital, after a former trader was charged with helping the fund reap $276 million in gains from insider information. According to Dealbook, “Criminal prosecutors have already linked six former employees to insider trading while at SAC, securing three convictions.” Dealbook, 11/28/12

The Bad

  • Jacob Hensarling (R, TX) replaces Bachus as head of the House Financial Services Committee. Too early to tell what this means – it could very well drop into Ugly territory – but one industry watcher notes that Hensarling was among the Republicans who successfully attempted to undermine the CFTC on position limits. We’ll be watching closely. WS Journal, 11/28/12

The Ugly

  • Felix Salmon describes the well-oiled, well-funded and influential corporate lobbying organization, Fix the Debt. The headline should read, “Why we need Occupy Wall St”. Reuters, 11/28/12
  • Jesse Eisinger joins Simon Johnson in nominating the Office of Financial Research as the new problem child among regulators. ProPublica, 11/28/12
  • Yves Smith lays out the case against Robert Khuzami becoming the new SEC chair in painful detail. Naked Capitalism, 11/28/12
  • A twofer: Cate Long and Pam Martens agree that Sallie Krawcheck would be a terrible choice to head the SEC. Reuters, Wall St. On Parade, 11/29/12

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