Wednesday, July 31, 2013

U.S. prosecutors charged six foreign nationals with hacking crimes

U.S. prosecutors charged six foreign nationals with hacking crimes, including credit and debit card thefts that authorities say cost U.S. and European companies more than $300 million in losses, and charged one of them with breaching Nasdaq computers.
Prosecutors said the indictments unsealed on Thursday for the payment card hacking were the biggest cyber fraud case filed in U.S. history.
The long list of victims include financial firms Citigroup Inc, Nasdaq OMX Group Inc, PNC Financial Services Group Inc and a Visa Inc licensee, Visa Jordan. Others include retailers Carrefour SA and J.C. Penney Co along with JetBlue Airways Corp, prosecutors said as they announced indictments.
Prosecutors said they conservatively estimate that a group of five men stole at least 160 million credit card numbers, resulting in losses in excess of $300 million.
Authorities in New Jersey charged that each of the defendants had specialized tasks: Russians Vladimir Drinkman, 32, and Alexandr Kalinin, 26, hacked into networks, while Roman Kotov, 32, mined them for data. They allegedly hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 26, of Ukraine.
Russian Dmitriy Smilianets, 29, is accused of selling the stolen data and distributing the profits. Prosecutors said he charged $10 for U.S. cards, $15 for ones from Canada and $50 for European cards, which are more expensive because they have computer chips that make them more secure.
The five concealed their efforts by disabling anti-virus software on victims computers and storing data on multiple hacking platforms, prosecutors said. They sold the payment card numbers to resellers, who then sold them on online forums or to "cashers" who encode the numbers onto blank plastic cards.

"This type of crime is the cutting edge," said U.S. Attorney Paul J. Fishman for the District of New Jersey. "Those who have the expertise and the inclination to break into our computer networks threaten our economic wellbeing, our privacy and our national security."
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Tuesday, July 30, 2013

Federal Reserve reviewing the trading by banks in the commodities market

The Federal Reserve is "reviewing" a landmark 2003 decision that first allowed regulated banks to trade in physical commodity markets, it said on Friday, a move that may send new shockwaves through Wall Street.
The one-sentence statement suggests the Fed is taking a much deeper, wide-ranging look at how banks operate in commodity markets than previously believed, amid intensifying scrutiny of everything from electricity trading to metals warehouses.

While the Fed has been debating for years whether to allow banks including Morgan Stanley (MS.N) and JPMorgan (JPM.N) to continue owning assets like oil storage tanks or power plants, Friday's surprise statement suggests it is also reconsidering whether all bank holding firms should be able to trade raw materials such as gasoline tankers and coffee beans.

By referencing its initial decision a decade ago permitting Citigroup's Phibro unit to trade oil cargoes - setting a precedent for a dozen more banks that followed suit - the Federal Reserve has put in question a key profit center for Wall Street's top players, which have already seen multibillion-dollar commodity revenues shrink in the face of new regulations.

On Tuesday, the Senate Banking Committee is holding its first hearing on the issue, asking whether so-called "Too Big to Fail" banks should be taking on additional risks like moving tankers of crude oil or operating power plants.

Amid growing frustration in Washington over regulators' failure to push through new rules five years after the financial crisis, the Fed's widening area of enquiry came as a shock.

"They must be feeling some pressure on this issue if they've felt compelled to issue a public statement," said Saule Omarova, associate professor of law at the University of North Carolina at Chapel Hill School of Law, who will appear at the hearing.

"Are they using this opportunity to in fact review the entire position of banks in physical commodity markets?"

The pressure may intensify as the U.S. power market regulator levies record fines over manipulating power markets. It levied a $453 million penalty against Barclays (BARC.L) this week and is in talks to settle charges against JPMorgan, which is alleged to have used power plants that it owned or operated to game markets.
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Monday, July 29, 2013

Wall Street's billion dollar commodity trading

Image representing Goldman Sachs as depicted i...
Image via CrunchBase
Wall Street's multibillion-dollar commodity trading operations came under the political spotlight on Tuesday as a powerful Senate committee questioned whether commercial banks should control oil pipelines, power plants and metals warehouses.
The Senate Banking Committee hearing comes as Goldman Sachs, Morgan Stanley and JPMorgan Chase - which generated an estimated $4 billion in commodity revenues last year - face growing pressure from a number of investigations into their operations, and as the Federal Reserve reviews Wall Street's right to operate in raw material markets.
Big aluminum buyers like MillerCoors, the second largest brewer in the U.S., told the packed hearing that the banks' control of metal warehouses that are part of the London Metal Exchange network has driven up their costs by as much as $3 billion last year by distorting supplies.
"U.S. bank holding companies have effective control of the LME and they have created a bottleneck which limits the supply of aluminum," Tim Weiner, global risk manager for the brewer, the combined U.S. operations of Molson Coors and SABMiller, said in a prepared statement to the Senate banking committee.
The banks were not present at the hearing, but as it got underway Goldman Sachs issued its first public rebuttal of mounting criticism of its metals warehousing unit, denying that Metro International Trade Services has deliberately caused aluminum shortages and inflated prices.
The threat to Wall Street's physical commodity trading divisions has escalated abruptly across multiple fronts, putting an uncomfortable spotlight on a lucrative side of their business that has thus far fallen largely outside of regulators' sights.
Last Friday, the Fed raised the stakes dramatically, issuing a surprise statement to say it was reviewing a landmark 2003 ruling that first allowed commercial banks to trade physical commodities such as gasoline barges and coffee beans. Until then, the Fed had been thought to be only debating whether or not certain banks could own assets, not trade the raw materials.
"Since 2003, our government and central bank have allowed an unprecedented mixing of banking and commerce," Joshua Rosner, managing director of independent research firm Graham Fisher & Co, said in prepared remarks.

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Sunday, July 28, 2013

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Saturday, July 27, 2013

JPMorgan Chase & Co is exiting physical commodities trading

Commodities trading
Commodities trading (Photo credit: London Commodity Markets)
JPMorgan Chase & Co is exiting physical commodities trading, the bank said in a surprise statement on Friday, as Wall Street's role in the trading of raw materials comes under unprecedented political and regulatory pressure.
After spending billions of dollars and five years building the banking world's biggest commodity desk, JPMorgan said it would pursue "strategic alternatives" for its trading assets that stretch from Baltimore to Johor, and a global team dealing in everything from African crude oil to Chilean copper.
The firm will explore "a sale, spinoff or strategic partnership" of the physical business championed by commodities chief Blythe Masters, the architect of JPMorgan's expansion in the sector and one of the most famous women on Wall Street. The bank said it will continue to trade in financial commodities such as derivatives and precious metals.
Pressured by tougher regulation and rising capital levels, JPMorgan joins other banks such as Barclays PLC and Deutsche Bank in a retreat that marks the end of an era in which investment banks across the world rushed to tap into volatile markets during a decade-long price boom.
But JPMorgan is the first big player to exit physical commodities entirely and attention will now turn to Morgan Stanley and Goldman Sachs, which face similar pressures.
Friday's announcement follows a week of intense scrutiny of Wall Street's commodity operations, with U.S. lawmakers questioning whether banks should own warehouses and pipelines, and the U.S. Federal Reserve reviewing a landmark 2003 decision that allowed commercial banks to trade in physical markets.
JPMorgan's own review, which began in February, concluded that the profits from the business were too slight to be worth the risks and costs of dealing with regulators in multiple jurisdictions, according to one person familiar with the matter.
Although the commodity division's $2.4 billion in reported revenue last year surpassed those of long-time rivals Goldman Sachs Group Inc and Morgan Stanley combined, some have queried its profitability due to the costs of running a huge logistical operation. One analyst estimated that physical trade accounted for half or more of overall commodities revenue.

A sale could help JPMorgan Chief Executive Jamie Dimon make good on his promise to put the bank back on course after a series of costly and embarrassing trading moves and regulatory run-ins, including a potential $410 million settlement over alleged power market manipulation.
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Friday, July 26, 2013

New global rules to help clamp down on corporate tax evasion and avoidance

English: The logo of the Organisation for Econ...
English: The logo of the Organisation for Economic Co-operation and Development (OECD). (Photo credit: Wikipedia)
New global rules to help clamp down on corporate tax evasion and avoidance could be in place as early as next year, says the Organization for Economic Co-operation and Development.
The Paris-based organization handed the G20 finance ministers — including Canada's Jim Flaherty — a three-step game plan during their meetings Friday, which if implemented, will establish the infrastructure for global co-operation on the controversial issue.
The plan calls for a universal and automatic exchange of financial information, development of an operation platform for common reporting and due diligence of rules, and the creation of a multilateral platform to protect confidentiality.
Dennis Howlett, the executive director of Canadians for Tax Fairness, says he's encouraged by the progress and expects the G20 ministers to endorse the plan.
Howlett, however, also cautioned that the key to its success — or failure — will be how quickly and effectively nations implement the proposals.
Although Canada has said it backs efforts to end tax havens, it`s not clear if Ottawa supports all the proposals before the G20, particularly the rules governing "beneficial ownership" that would seek to establish the true ownership of an account or operation.
We will be pushing Canada to support these proposals," said Howlett. "Information exchange isn't going to work very well if you don't know in what country the ultimate ownership in a tax haven trust account or shell company resides."
Strong beneficial ownership rules could also be used to ferret out organized crime and terrorist groups, he said.
Howlett said some of the current Canadian practices are not up to the new, proposed standard, adding that corporate registration is at times under provincial and other times, federal jurisdiction, which adds another layer of complication.
The issue has received international attention recently after technology giants Google and Apple were accused of taking advantage of legal loopholes to avoid paying billions of dollars in taxes.
OECD official Pascal Saint-Amans says lax international rules that date back to the 1930s have led to a “golden era” in tax avoidance.
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Thursday, July 25, 2013

Indonesia's Palm Oil Industry Rife With Human-Rights Abuses

“What kind of oil should we buy?” Luo Xiaohua shouts to her cousin from the cooking oil aisle in Yonghui Supermarket in the heart of Chongqing, a rising Chinese megacity. Luo, 50, is the quintessential Chinese shopper. She earns $3,250 a year and has an elementary education. She’s fiercely opinionated about her purchases.
Luo stands before amber-hued bottles loaded with a commodity that fuels China’s and India’s growing consumer classes. “From what I understand, all of these brands contain palm oil,” she says. “But they just don’t say it on the label.” She says she’d prefer to use olive oil but can’t afford it. “Corporations have the power in this country, and consumers have to make decisions based on limited options.”
Palm oil and its derivatives are found in thousands of products worldwide, from doughnuts to soap, lipstick to biodiesel. Globally, palm oil consumption has quintupled since 1990. Demand in Asia, where palm oil is widely used in cooking oil and noodles, has driven the growth of a $44 billion industry. In February, exports from Indonesia, the world’s largest producer of palm oil, hit a five-year high.
Shoppers such as Luo are at the heart of that boom. China is the world’s largest consumer of vegetable oil, of which palm oil is the world’s most-produced variety. Since the late 1970s, as the Chinese shifted away from traditional staples such as rice and grains and toward a higher-fat diet, palm oil imports have grown 150-fold.
As it’s grown, the palm oil industry has drawn scrutiny from environmental activists in Europe and the U.S. They decry the destruction of rainforests in Indonesia and Malaysia to support oil palm expansion, which threatens the natural habitats of endangered species such as pygmy elephants and Sumatran tigers. The human costs of the palm oil boom, however, have been largely overlooked. A nine-month investigation of the industry, including interviews with workers at or near 12 plantations on Borneo and Sumatra—two islands that hold 96 percent of Indonesia’s palm oil operations—revealed widespread abuses of basic human rights. Among the estimated 3.7 million workers in the industry are thousands of child laborers and workers who face dangerous and abusive conditions. Debt bondage is common, and traffickers who prey on victims face few, if any, sanctions from business or government officials.
The U.S. government has highlighted the prevalence of human-rights abuses in the palm oil trade: A 2012 U.S. Department of Labor report found that among the industries most notorious for forced and child labor were apparel, seafood, gold, and palm oil. But because palm oil companies face little pressure from consumers to change, they continue to rely on largely unregulated contractors, who often use unscrupulous practices. The impact of any reform efforts will be limited unless the new consumer giants—China and India, which account for more than a third of global palm oil imports—are brought into the debate. “We have a Western-facing strategy on an Eastern-facing problem,” says Dave McLaughlin, who oversees agriculture issues for the World Wildlife Fund.
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Wednesday, July 24, 2013

JPMorgan Chase & Co (JPM.N), the largest U.S. bank, posted a 31 percent increase

JPMorgan Chase & Co (JPM.N), the largest U.S. bank, posted a 31 percent increase in second-quarter earnings on Friday after underwriting income jumped and bond trading revenue rose.
JPMorgan, the first of the major U.S. banks to report results for the quarter, managed to book more profit from trading corporate bonds even as debt prices broadly fell. The bank's comments made some investors hopeful that rivals with big trading arms will also post strong second-quarter results.
Shares of Goldman Sachs Group Inc (GS.N), Morgan Stanley (MS.N) and Bank of America Corp (BAC.N) were up more than 1 percent as of late Friday afternoon.
But JPMorgan also acknowledged that market conditions have grown difficult, and that it might need to accelerate cost-cutting. Since mid-May, U.S. bond markets have suffered their worst two-month selloff in a decade, as the Federal Reserve has said it is planning to taper its massive bond purchases, known as quantitative easing.
The bond market weakness puts Chief Executive Jamie Dimon in a tough spot. Mortgage rates are rising, which could slash mortgage lending volume by 30 to 40 percent, said Chief Financial Officer Marianne Lake on a call with investors. But U.S. economic growth is still subdued, meaning demand for most other loans is hardly surging.
"It's a difficult environment," said Gary Townsend, co-founder of hedge fund Hill-Townsend Capital, which invests in financial stocks. "The bank is not doing as well as it can in a better interest-rate environment."

The bank's results beat analysts' average forecast. Its shares were down 0.5 percent at $54.88 on Friday afternoon. The stock had jumped 25 percent this year as of Thursday's close, helped by growing confidence that the U.S. economy is on the road to recovery.
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Tuesday, July 23, 2013

Citigroup Inc posted a 42 percent jump in quarterly profit

Citigroup
Citigroup (Photo credit: Wikipedia)
Citigroup Inc posted a 42 percent jump in quarterly profit as bond trading revenue gained and stronger home prices helped the bad mortgages on its books, underscoring the bank's recovery since the financial crisis.
The third-largest U.S. bank is getting its house in order after years of management problems forced it to seek three U.S. bailouts in 2008 and 2009. Current Chief Executive Michael Corbat and predecessor Vikram Pandit cut risk-taking in its trading businesses, hired selectively in safer areas like investment banking, and scaled back in markets where the bank had few growth opportunities.

Citigroup is fixing itself amid a treacherous environment for global banks. Rising bond yields in the United States are expected to cut into debt underwriting volume and may cut into bond trading profit.

Citigroup, often seen as the most international of the major U.S. banks, faces additional pressure from slowing growth in emerging markets. About one-half of its profit in the first half came from emerging markets.

Even as Citigroup improves operations, it faces economic and market problems that could weigh on its recovery, said Stanley Crouch, chief investment officer of Aegis Capital Corp, whose clients own Citigroup shares.

"You get this riptide, and it may not be good," Crouch added.

In the second quarter, Citigroup's biggest profit boosts came from its securities and banking unit, where bond trading revenue rose 18 percent, while stock trading revenue soared 68 percent, and underwriting and advisory work was up 21 percent.

Overall second-quarter net income rose to $4.18 billion from $2.95 billion in the same quarter last year. Excluding gains from changes in the value of its debt, the company earned $3.89 billion, up 26 percent from the same quarter last year.


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Monday, July 22, 2013

Two former brokers charged in Libor interest rate rigging

Britain's fraud prosecutor on Monday charged two former brokers at interdealer broker RP Martin with conspiracy to defraud, stepping up its investigation into the rigging of Libor benchmark interest rates.
The Serious Fraud Office (SFO) said it had charged Terry Farr and James Gilmour, seven months after arresting them. They are the first brokers to be charged in the Libor scandal.

The two were arrested a fortnight before Christmas along with former UBS (UBSN.VX) and Citigroup (C.N) trader Tom Hayes, who was last month charged with eight counts of conspiracy to defraud as the SFO laid the groundwork for what could be the first Libor trial.

A central cog in the world financial system, the London interbank offered rate (Libor) is used as a reference for some $550 trillion in contracts ranging from complex derivatives to everyday credit card bills.

Trust in the benchmark was shaken by revelations last year that traders had routinely manipulated it, prompting a series of investigations by regulators and other authorities.

Britain's Barclays (BARC.L) and Royal Bank of Scotland (RBS.L) and Switzerland's UBS have been fined by U.S. and UK authorities for manipulating Libor, and more banks and individuals are under investigation.
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Ruling could OK user fee for premium credit cards

Ruling could OK user fee for premium credit cards

Sunday, July 21, 2013

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Saturday, July 20, 2013

Accountants Deloitte will next week return before a tribunal

Deloitte
Deloitte (Photo credit: mada299)
Accountants Deloitte will next week return before a tribunal which is assessing whether it failed to manage conflicts of interest in its advice to MG Rover Group and the "Phoenix Four" directors who bought the UK carmaker before it collapsed.
MG Rover was put into administration in 2005 with debts of 1.4 billion pounds ($2.1 billion) and the loss of 6,000 jobs. Four of its directors had set up Phoenix to buy the loss-making carmaker for a token 10 pounds five years earlier.
There was public anger when it emerged the four had paid themselves 40 million pounds in salaries and pensions before MG Rover collapsed. The four faced no criminal charges but were disqualified from being directors of any company for up to six years.
The Financial Reporting Council, which regulates accountants, said last year that Deloitte and an employee, Maghsoud Einollahi, had failed to properly manage conflicts of interest.
Deloitte and Einollahi had acted as corporate finance advisors to companies involved with MG Rover and the Phoenix Four while Deloitte was also auditing MG Rover.
Deloitte disagreed with the finding and a hearing of the complaint began at an independent tribunal in March. The FRC said on Monday the hearing will resume on July 29. If upheld, Deloitte and Einollahi could face unlimited fines.

Deloitte could not comment immediately.
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Friday, July 19, 2013

UPS and FedEx might be worried about international shipments to slowing economies

Image representing UPS  as depicted in CrunchBase
Image via CrunchBase
UPS and FedEx might be worried about international shipments to slowing economies like China, but perhaps they should be more concerned about what's going on in their own back yards.
Major U.S. retailers are experimenting with new e-commerce strategies that could dent demand for package delivery services, particularly demand for shipments over long distances, according to analysts and industry executives.
Amazon.com Inc is building its distribution warehouses closer to customers to save millions of dollars in shipping costs. The world's largest online retailer is also increasingly using its own delivery trucks, cutting UPS and FedEx out of some parts of its fulfillment network.
Meanwhile, major brick-and-mortar retailers such as Wal-Mart Stores Inc, Best Buy Co Inc and Gap Inc are shipping more online orders from stores close to shoppers, rather than from warehouses hundreds of miles away.
"UPS and FedEx are not only watching this, they are likely concerned about it," said Lou Tapper, an executive at third-party logistics company Longistics, who worked at FedEx for 18 years. "Big companies like Amazon and Wal-Mart will dictate which direction this goes. Those are the companies that FedEx and UPS need to fill their planes and trucks."
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Thursday, July 18, 2013

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Wednesday, July 17, 2013

Canada has lagged the United States in using its rail system to haul crude oil

CN 8880 rolls past Wood Street Crossing in Harvey
CN 8880 rolls past Wood Street Crossing in Harvey (Photo credit: Wikipedia)
For the last three years, Canada has lagged the United States in using its rail system to haul crude oil, hindered by a lack of loading terminals and a shortage of specially built rail cars that reheat viscous oil sands crude.
Now it's on the brink of catching up. Over the next 12 months, producers like Cenovus Energy Inc (CVE.TO) and logistics firms like Gibson Energy Inc (GEI.TO) will load up mile-long dedicated trains with ultra-heavy bitumen oil and move them thousands of miles in heated and coiled rail cars that eliminate the need to dilute the crude for pipeline shipments.
Yet they are opening up a new phase in the oil-by-rail boom at a moment of deepening uncertainty. An oil-train derailment that killed 50 people in Quebec has cast a shadow over the controversial practice and could raise new hurdles.
For the moment, the handful of new projects to potentially quadruple the amount of oil sands crude shipped by rail are moving ahead. Exports could soon rival U.S. shale oil rail shipments, currently three times greater than Canada's.
James Cairns, vice president of petroleum and chemicals at Canadian National Railway Co (CNR.TO), said in Calgary this week that companies were moving at "breakneck speed" to overcome nationwide shortages of both infrastructure and rolling stock.
"In my 26 years in the rail business I have never seen this much massive investment in CN lines by our customers to get their products onto our railways," Cairns said. CN, the nation's largest carrier, expects to more than double last year's 30,000 carloads of raw bitumen and crude this year.
It is still too early to say how the derailment in the small town of Lac-Megantic will affect the oil-by-rail trend. The runaway 72-car oil train derailed and exploded in the center of the town in the worst North American rail disaster in two decades. The company that operated the train said the sole engineer on duty failed to adequately secure it.
Environmentalists and local groups have already expressed deep concerns about oil trains crisscrossing the continent, mirroring the vigorous campaigns against new pipelines.
Early this year, China-owned oil sands producer Nexen faced objections to a proposed project to move crude by rail to the Port of Prince Rupert on the West Coast.
Mike Hudema, climate and energy campaigner at Greenpeace, says many groups have expressed concerns, "especially in the wake of Lac-Megantic." The main worry is an older model tank car that regulators say is flawed. Cars ordered after October 2011, which include most heated cars, are better protected from accidents. Nexen says the project has not advanced for months.
Still, oil executives say the Quebec disaster should not slow progress.

"This won't have an impact," said Lyle Stevens, senior vice president of North American exploitation at Canadian Natural Resources Ltd (CNQ.TO), which intends to continue shipping an estimated 15,000 bpd of Canadian crude by rail.
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Tuesday, July 16, 2013

Economy stuck

Every calendar quarter, the Bureau of Economic Analysis (BEA) makes three estimates of U.S. Gross Domestic Product (GDP) for the prior quarter: an advance estimate, a second estimate and a third estimate.
The advance estimate of real GDP for the first quarter was 2.5 percent. That's not a robust rate of growth, but as an improvement over the 0.4 percent rate for the last quarter of 2012, it was a strong move in the right direction.
The second estimate contained only a slight revision, down to 2.4 percent. However, when the third estimate came out last month, real GDP growth for the first quarter was revised all the way down to 1.8 percent. This is still an improvement over the prior quarter, but indicates progress at a much more sluggish rate. Especially given the start-and-stop nature of the recovery since the Great Recession, this tepid growth rate suggests the economy may be stuck in the same rut.
The threat of inflation
Inflation has been nicely under control in recent months. As of the end of May, the Consumer Price Index (CPI) had risen only 1.4 percent for the prior 12 months, and had registered just two monthly increases in the past seven months.
A key to this has been stable energy prices. Time and time again, oil in particular has proven to be a catalyst for broader inflationary trends. As of the end of May, a barrel of oil was selling for $91.97, and hadn't been above $100 in over a year. That has now changed. Oil began rising in June, and then climbed more steeply in early July to cross the $100 mark by the second day of the month.
This trend in oil prices may be too recent to have much of an impact on the CPI numbers for June that will be released in mid-July. But watch for inflation to perk up in the next couple months if oil prices don't start to subside.

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Monday, July 15, 2013

12-year prison sentence for insider trading upheld

A record 12-year prison sentence for insider trading given to a former lawyer in connection with a tipping scheme that stretched over 17 years was upheld on Tuesday by a federal appeals court.
Matthew Kluger, 52, had been sentenced in June 2012 for passing tips about corporate mergers that he learned about while working at four major U.S. law firms from 1994 to 2011, starting when he was a student at New York University's law school.
Prosecutors said the scheme generated more than $37 million of illegal profit, most of which went to Garrett Bauer, a New York trader. Bauer was sentenced to 9 years in prison, while a middleman, Kenneth Robinson, got 2-1/4 years in prison.
Kluger pleaded guilty in December 2011 to securities fraud, conspiracy and obstruction charges, but he said his sentence was too long, in part because his profit was only about $500,000.
The 3rd U.S. Circuit Court of Appeals in Philadelphia nonetheless found "good reason" for Kluger's sentence, even though it was "fairly severe" relative to Bauer's, and said the scheme could not have functioned without his tips.
"Kluger was an attorney who took an oath to uphold the law," Circuit Judge Morton Greenberg wrote for a three-judge panel.
"It is really quite remarkable that Kluger could not even wait to graduate from law school before using his employment at a law firm to initiate his illegal activities," he continued. "It is equally remarkable that during most of his legal career he was involved in criminal activity, so that in an actual though perhaps not in a legal technical sense ... he truly was a career criminal."
The four law firms were Cravath, Swaine & Moore; Skadden, Arps, Slate, Meagher & Flom; Fried, Frank, Shriver, Harris & Jacobson; and Wilson Sonsini Goodrich & Rosati. None was implicated in wrongdoing.
Kluger's sentence for insider trading exceeds the 11-year term given to Galleon Group hedge fund founder Raj Rajaratnam, and the 10-year sentence for former Galleon trader Zvi Goffer.
The 2nd U.S. Circuit Court of Appeals in New York upheld Rajaratnam's conviction on June 24, and Goffer's conviction and sentence on July 1.
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