SEC charges trader with market abuse
Paul Berliner settles with the SEC on charges of market manipulation
WASHINGTON, DC – Only weeks after rumours of market abuse surrounded the near collapse of Bear Stearns, US regulator the Securities and Exchange Commission (SEC) has charged a trader with spreading false rumours.
Paul Berliner, a trader for the Schottenfeld group, is charged with spreading false rumours on November 29, 2007. Instant messaging between his trader friends spread the rumour that Blackstone was considering lowering its price for its takeover of Alliance Data Systems (ADS). Blackstone had agreed to acquire ADS for $6.4 billion six months earlier. The false rumours said Blackstone’s initial offer of $81.75 per share would be reduced to $70 due to problems in ADS’ consumer banking division. The rumours reduced ADS’ stock by 17% noon that day.
Berliner has agreed to settle without admitting or denying the SEC allegations. He is required to pay a $130,000 fine and surrender $26,129 made in profits and interest. He is also barred by an SEC order from any association with a broker or dealer.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Market doesn’t share FSB concerns over basis trade
Industry warns tougher haircut regulation could restrict market capacity as debt issuance rises
FCMs warn of regulatory gaps in crypto clearing
CFTC request for comment uncovers concerns over customer protection and unchecked advertising
UK clearing houses face tougher capital regime than EU peers
Ice resists BoE plan to move second skin in the game higher up capital stack, but members approve
ECB seeks capital clarity on Spire repacks
Dealers split between counterparty credit risk and market risk frameworks for repack RWAs
FSB chief defends global non-bank regulation drive
Schindler slams ‘misconception’ that regulators intend to impose standardised bank-like rules
Fed fractures post-SVB consensus on emergency liquidity
New supervisory principles support FHLB funding over discount window preparedness
Why UPIs could spell goodbye for OTC-Isins
Critics warn UK will miss opportunity to simplify transaction reporting if it spurns UPI
EC’s closing auction plan faces cool reception from markets
Participants say proposal for multiple EU equity closing auctions would split price formation
