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2003 Mutual Fund Scandal
The mutual fund scandal of 2003 was the result of the discovery of illegal late trading and market timing practices on the part of certain hedge fund and mutual fund companies. Spitzer investigation On September 3, 2003, New York Attorney General Eliot Spitzer announced the issuance of a complaint against New Jersey hedge fund company Canary Capital Partners LLC, charging that they had engaged in "late trading" in collusion with Bank of America's Nations Funds. Bank of America is charged with permitting Canary to purchase mutual fund shares, after the markets had closed, at the closing price for that day. Spitzer's investigation was initiated after his office received a ten-minute June 2003 phone call from a Wall Street worker alerting them to an instance of the ''late trading'' problem. Canary Capital settled the complaint for US$40 million, while neither admitting nor denying guilt in the matter. Bank of America stated that it would compensate its mutual fund shareholders fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Late Trading
Late trading is trading that executes after the market closes, while charging the share price of when the market was still open. This form of trading may be illegal, and is distinct from official after-hours trading. Mutual funds In the mutual fund context, ''late trading'' involves placing orders for mutual fund shares after the close of the stock market, 4:00 p.m for the New York Stock Exchange, but still getting that day's closing price, rather than the next day's opening price. The price of mutual funds is usually set only once per day, so intraday prices are not applicable. Controversy In the United States this practice is illegal under SEC rules but many mutual fund managers appear to have allowed exceptions for certain hedge funds and other favored investors who were able to obtain that day's price, notwithstanding that their orders were received after-hours. See also *2003 mutual fund scandal The mutual fund scandal of 2003 was the result of the discovery of illegal l ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Front Running
Front running, also known as tailgating, is the prohibited practice of entering into an equity (stock) trade, option, futures contract, derivative, or security-based swap to capitalize on advance, nonpublic knowledge of a large ("block") pending transaction that will influence the price of the underlying security. In essence, it means the practice of engaging in a Personal Securities Transaction in advance of a transaction in the same security for a client's account. Front running is considered a form of market manipulation in many markets. Cases typically involve individual brokers or brokerage firms trading stock in and out of undisclosed, unmonitored accounts of relatives or confederates. Institutional and individual investors may also commit a front running violation when they are privy to inside information. A front running firm either buys for its own account before filling customer buy orders that drive up the price, or sells for its own account before filling customer s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Franklin Templeton
Franklin Resources, Inc. is an American multinational holding company that, together with its subsidiaries, is referred to as Franklin Templeton; it is a global investment firm founded in New York City in 1947 as Franklin Distributors, Inc. It is listed on the New York Stock Exchange under the ticker symbol BEN, in honor of Benjamin Franklin, for whom the company is named, and who was admired by founder Rupert Johnson Sr. In 1973, the company's headquarters moved from New York to San Mateo, California. As of October 12, 2020, Franklin Templeton held US$1.4 trillion in assets under management (AUM) on behalf of private, professional and institutional investors. History The company was founded in 1947 in New York by Rupert Johnson Jr., Rupert H. Johnson Sr., who ran a successful retail brokerage firm from an office on Wall Street. He named the company for American polymath Benjamin Franklin because Franklin espoused frugality and prudence when it came to saving and investing. The c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Federated Investors
Federated Hermes is an investment manager headquartered in Pittsburgh, Pennsylvania, United States. Founded in 1955 and incorporated on October 18, 1957, the company manages $624 billion of customer assets, as of Sept. 30, 2022. The company offers investments spanning equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies, including mutual funds, exchange-traded funds (ETFs), separate accounts, closed-end funds and collective investment funds. Clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. History Federated Investors was founded in 1955 by high school classmates John F. Donahue, Richard B. Fisher, and Thomas J. Donnelly. Aetna acquired a majority ownership stake in Federated Investors in 1982; at the time Federated had nearly $30 billion in assets under management. In 1989, Federated management purchased Aetna's stake for $345 million, reestablishing major ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Edward Jones Investments
Edward D. Jones & Co., L.P., (since 1995, d.b.a. Edward Jones Investments), simplified as Edward Jones, is a financial services firm headquartered in St. Louis, Missouri, United States. It serves investment clients in the U.S. and Canada, through its branch network of more than 15,000 locations and 19,000 financial advisors. The company currently has relationships with nearly 8 million clients and $1.7 trillion in assets, under management worldwide. The firm focuses solely on individual investors and small-business owners. Edward Jones is a subsidiary of The Jones Financial Companies, L.L.L.P., a limited liability limited partnership owned only by its employees and retired employees and is not publicly traded. Edward Jones appointed Penny Pennington as managing partner, effective January 2019, making her the firm's sixth managing partner and the only woman to lead a major U.S. brokerage firm. History Edward Jones was founded by Edward D. Jones in St. Louis, Missouri in 1922. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Deutsche Bank
Deutsche Bank AG (), sometimes referred to simply as Deutsche, is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. It was founded in 1870 and grew through multiple acquisitions, including Disconto-Gesellschaft in 1929 (as a consequence of which it was known from 1929 to 1937 as Deutsche Bank und Disconto-Gesellschaft or "DeDi-Bank"), Bankers Trust in 1998, and Deutsche Postbank in 2010. As of 2018, the bank's network spanned 58 countries with a large presence in Europe, the Americas, and Asia. As of 2021, Deutsche Bank was the 21st largest bank in the world by total assets and 93rd in the world by market capitalization. It is a component of the DAX stock market index, and often referred to as the largest German banking institution even though the Sparkassen-Finanzgruppe comes well ahead in terms of combined assets. Deutsche Bank has bee ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Columbia Management Advisors
Columbia Management Group was an investment advisor and sponsor of mutual funds. In 2009, it was acquired by Ameriprise Financial and, in 2015, it was merged into Threadneedle to form Columbia Threadneedle Investments, the asset management subsidiary of Ameriprise. History In 1962, Jim Rippey and John "Jerry" Inskeep founded Columbia Management Company in Portland, Oregon. In 1967, they opened the Columbia Growth Fund, the first mutual fund based in Oregon. In 1997, FleetBoston Financial acquired the company for $460 million. In 2001, Columbia acquired mutual funds from Liberty Financial, which were rebranded as Columbia in 2003. In September 2003, the company acquired Crabbe Huson Group. In February 2004, several executives were fired after a trading scandal in which certain customers were given preferential treatment. In 2004, FleetBoston Financial was acquired by Bank of America. In 2007, Bank of America sold Marsico Capital Management back to Tom Marsico. In November 20 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Canary Capital Partners
Canary originally referred to the island of Gran Canaria on the west coast of Africa, and the group of surrounding islands (the Canary Islands). It may also refer to: Animals Birds * Canaries, birds in the genera ''Serinus'' and ''Crithagra'' including, among others: ** Atlantic canary (''Serinus canaria''), a small wild bird *** Domestic canary, ''Serinus canaria domestica'', a small pet or aviary bird, also responsible for the "canary yellow" color term ** Yellow canary (''Serinus flaviventris''), a small bird Fish * Canary damsel (''Similiparma lurida''), fish of the family Pomacentridae, found in the eastern Atlantic Ocean * Canary moray (''Gymnothorax bacalladoi''), an eel of the family Muraenidae * Canary rockfish (''Sebastes pinniger''), of the family Sebastidae, found in the northeast Pacific Ocean People * Canary Burton (born 1942), American keyboardist, composer and writer * Canary Conn (born 1949), American entertainer and author * Bill Canary (fl. 1994), Republican ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bear Stearns
The Bear Stearns Companies, Inc. was a New York-based global investment bank, securities trading and brokerage firm that failed in 2008 as part of the global financial crisis and recession, and was subsequently sold to JPMorgan Chase. The company's main business areas before its failure were capital markets, investment banking, wealth management, and global clearing services, and it was heavily involved in the subprime mortgage crisis. In the years leading up to the failure, Bear Stearns was heavily involved in securitization and issued large amounts of asset-backed securities which were, in the case of mortgages, pioneered by Lewis Ranieri, "the father of mortgage securities". As investor losses mounted in those markets in 2006 and 2007, the company actually increased its exposure, especially to the mortgage-backed assets that were central to the subprime mortgage crisis. In March 2008, the Federal Reserve Bank of New York provided an emergency loan to try to avert a sudden co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alliance Capital Management Holdings LP
AllianceBernstein Holding L.P. (AB) is a global asset management firm providing investment management and research services worldwide to institutional, high-net-worth and retail investors. AllianceBernstein's headquarters are located in Nashville, Tennessee; the firm also has locations throughout the world. It has approximately in assets under management . History Origins AllianceBernstein traces its origins back to the founding of Sanford C. Bernstein in 1967 as an investment-management firm for private clients. Sanford C. Bernstein & Company was originally co-founded by Zalman Bernstein, Paul P. Bernstein, Shepard D. Osherow, Roger Hertog and Lewis A. Sanders. Alliance Capital was founded in 1971 when the investment-management department of Donaldson, Lufkin & Jenrette, Inc. merged with the investment-advisory business of Moody's Investor Services, Inc. 2000–2015 In October 2000, Alliance Capital acquired Sanford C. Bernstein. Alliance Capital's growth equity and c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prudential Securities
Prudential Securities, also formerly known as Prudential Securities Incorporated (PSI), was the financial services arm of the insurer, Prudential Financial. In 2003, Prudential Securities was merged into Wachovia Securities, a division of Wachovia Bank. History Prudential Securities traces its origins to the founding of the Leopold Cahn & Co. brokerage and investment bank in 1879. In 1891, the firm was reorganized as J.S. Bache & Co. after Jules Bache was brought into the partnership. In 1974, Bache merged with Halsey, Stuart & Co., a Chicago-based investment bank founded in 1911. In 1952, Halsey, Stuart made headlines when its managing partner, Harold L. Stuart, testified before the U.S. Supreme Court for the government's antitrust case against Morgan Stanley and 16 other major investment banks. The fact that Halsey, Stuart was a significant investment banking firm, at the top of the IPO league tables in 1951 led some observers to suspect that they had provoked the governme ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Invesco
Invesco Ltd. is an American independent investment management company that is headquartered in Atlanta, Georgia, with additional branch offices in 20 countries. Its common stock is a constituent of the S&P 500 and trades on the New York stock exchange. Invesco operates under the Invesco, Trimark, Invesco Perpetual, WL Ross & Co and Powershares brand names. History Invesco (then officially spelled with all-capital letters: INVESCO) was created in Atlanta in 1978 when Citizens & Southern National Bank divested its money management operations. In 1988, the company was purchased by the British firm Britannia Arrow, based in London, which later took the INVESCO name. In 1997 INVESCO PLC merged with AIM Investments. Upon completion of the merger the company adopted the name Amvescap. In 2007 the company reverted to the Invesco name. Since 2000 Invesco has grown through acquisitions such as the ETF firm PowerShares Capital Management and the restructuring of WL Ross & Co. In 2004, th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
