{"id":11563,"date":"2010-07-21T00:19:08","date_gmt":"2010-07-21T04:19:08","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=11563"},"modified":"2010-07-21T00:19:08","modified_gmt":"2010-07-21T04:19:08","slug":"july-20-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=11563","title":{"rendered":"July 20, 2010"},"content":{"rendered":"

Fabulous Fabio is fighting the SEC fraud charges<\/a>:<\/p>\n

Fabrice Tourre, the Goldman Sachs Group Inc. executive director sued by the Securities and Exchange Commission for fraud, disputed the claims and said he relied on his firm\u2019s legal and compliance department.
…<\/b>
The firm is cooperating in the SEC\u2019s investigation of Tourre, 31, who remains an employee. He is on leave, with legal expenses being paid by New York-based Goldman Sachs.<\/p>\n

\u201cThe purported claims against Mr. Tourre and the allegations upon which they are based are improperly vague, ambiguous and confusing, and omit critical facts,\u201d the filing said. \u201cMr. Tourre, a French citizen and engineer by training, reasonably relied on Goldman Sachs\u2019 institutional process to ensure adequate legal review and disclosure of material information, and cannot be held liable for any alleged failings of that process.\u201dIn the filing, Tourre said he was aware that Paulson \u201cwas considering taking some or all of the short side\u201d of the transaction. He added that the offering document for the CDO contained all relevant information for investors, including the complete portfolio of assets, the fact that no one was purchasing the equity portion of the deal and that a Goldman Sachs affiliate had a short interest and could transfer that interest.<\/p>\n

\u201cThe portion of the offering document prepared by ACA and for which ACA assumed sole responsibility states that ACA will \u2018select the Initial Reference Portfolio,\u2019\u201d the filing said.
…<\/b>
Senator Tom Coburn, a Republican from Oklahoma who serves on the Permanent Subcommittee on Investigations, repeatedly questioned Tourre and other Goldman Sachs executives on why the firm decided to release Tourre\u2019s e-mails, including some that seemed unrelated to the hearing.<\/p>\n

\u201cIf I worked for Goldman Sachs, I\u2019d be real worried that somebody has made a decision, \u2018he\u2019s going to be a whipping boy, he\u2019s the guy that\u2019s getting hung out to dry,\u2019\u201d Coburn told Blankfein during the hearing.<\/p><\/blockquote>\n

So there’s nothing too surprising in all this, other than the fact that a politician made an intelligent comment in the final paragraph.<\/p>\n

It is of interest that Goldman is continuing to pay Tourre’s legal expenses. It is quite common for regulators to claim that paying legal expenses for an employee constitutes lack of cooperation, therefore leaving the fall guy facing hundreds of government lawyers on the government payroll all by himself. Lucky for Tourre, that doesn’t yet appear to be the case in this instance.<\/p>\n

I am glad that somebody (namely, Tourre) has finally brought to light the startling news that Goldman has a legal and a compliance department who were involved in the issue. Am I the only other person in the entire world who has wondered why, if Goldman-the-firm did such a Very Bad Thing, that only one single employee has been charged? Am I the only other person in the entire world who has noticed the total lack of SEC interest in going after all the people who signed off on the deal?<\/p>\n

It’s a farce, a ridiculous farce, just another piece of regulatory extortion and political theatre. The fact that one guy who did a good job is at jeopardy of losing his reputation and entire career in the process doesn’t bother the apparatchiks at the SEC.<\/p>\n

A day of mixed results on good volume for the Canadian preferred share market, with PerpetualDiscounts gaining 15bp and FixedResets down 7bp.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n2.82 %<\/td>\n2.90 %<\/td>\n23,574<\/td>\n20.27<\/td>\n1<\/td>\n-0.2370 %<\/td>\n2,078.1<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1439 %<\/td>\n3,147.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.29 %<\/td>\n1.97 %<\/td>\n40,386<\/td>\n22.45<\/td>\n4<\/td>\n0.1439 %<\/td>\n2,243.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.87 %<\/td>\n-0.15 %<\/td>\n102,744<\/td>\n0.09<\/td>\n11<\/td>\n0.2442 %<\/td>\n2,345.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.28 %<\/td>\n6.17 %<\/td>\n77,870<\/td>\n3.42<\/td>\n2<\/td>\n0.2169 %<\/td>\n2,209.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2442 %<\/td>\n2,144.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.91 %<\/td>\n5.27 %<\/td>\n107,805<\/td>\n1.82<\/td>\n4<\/td>\n0.3648 %<\/td>\n1,940.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.84 %<\/td>\n5.90 %<\/td>\n189,056<\/td>\n14.03<\/td>\n73<\/td>\n0.1481 %<\/td>\n1,852.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.32 %<\/td>\n3.57 %<\/td>\n337,483<\/td>\n3.46<\/td>\n47<\/td>\n-0.0655 %<\/td>\n2,219.8<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-20
\nMaturity Price : 20.75
\nEvaluated at bid price : 20.75
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n
ENB.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-20
\nMaturity Price : 24.60
\nEvaluated at bid price : 24.85
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n
MFC.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.31 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-20
\nMaturity Price : 19.30
\nEvaluated at bid price : 19.30
\nBid-YTW : 5.91 %<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2010-08-19
\nMaturity Price : 25.50
\nEvaluated at bid price : 26.10
\nBid-YTW : -18.45 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-20
\nMaturity Price : 21.65
\nEvaluated at bid price : 21.65
\nBid-YTW : 5.84 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
IAG.PR.E<\/td>\nPerpetual-Discount<\/td>\n98,341<\/td>\nTD crossed 89,400 at 24.70.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-20
\nMaturity Price : 24.54
\nEvaluated at bid price : 24.75
\nBid-YTW : 6.12 %<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n65,768<\/td>\nNesbitt bought 10,000 from RBC at 27.10 and 20,000 from anonymous at the same price. RBC crossed 20,300 at 27.18.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.10
\nBid-YTW : 3.57 %<\/td>\n<\/tr>\n
TD.PR.A<\/td>\nFixedReset<\/td>\n65,125<\/td>\nRBC crossed blocks of 35,000 and 28,000, both at 26.20.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-03-02
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.14
\nBid-YTW : 3.57 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n64,750<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-20
\nMaturity Price : 23.27
\nEvaluated at bid price : 25.45
\nBid-YTW : 3.92 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n61,476<\/td>\nScotia crossed 53,500 at 26.10.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.15
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n
TD.PR.G<\/td>\nFixedReset<\/td>\n60,814<\/td>\nNesbitt bought 30,000 from anonymous at 27.87. National crossed 25,000 at 27.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.60
\nBid-YTW : 3.36 %<\/td>\n<\/tr>\n
There were 47 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Fabulous Fabio is fighting the SEC fraud charges: Fabrice Tourre, the Goldman Sachs Group Inc. executive director sued by the Securities and Exchange Commission for fraud, disputed the claims and said he relied on his …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-11563","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11563"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11563\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}