Compliancex

At Peregrine Financial, Signs of Trouble Seemingly Missed for Years [DealBook] It was a triumphant moment in 2009 when a delegation of Iowa lawmakers visited here to tour the gleaming, new headquarters of the Peregrine Financial Group. “This is impressive,” Charles E. Grassley, the Republican senator from Iowa, said, admiring the futures trading firm’s state-of-the-art facility. “This is a company that’s on the top of things.”

Ex-Bankers Are Charged With Fraud [WSJ] Four former top executives of a failed Virginia bank were charged with fraud, a rare federal criminal case against bank chiefs arising from the recent financial crisis. The U.S. attorney for Virginia’s eastern district alleged in an indictment that those executives and a few favored borrowers orchestrated and masked fraudulent loans, in some cases to purchase properties owned by bank insiders.

Hong Kong Billionaires Charged With Bribery [TNYT] In one of the biggest corruption scandals in Hong Kong in decades, two billionaire businessmen, a former high-ranking civil servant and two other men were charged Friday with bribery-related offenses, a development that could affect Hong Kong’s reputation as one of the least corrupt economies in the world.

In China, Little Urge to Audit the Auditors [TNYT] Optimism appears to be rising that the Securities and Exchange Commission can reach some sort of accommodation with Chinese authorities to get help in investigating a wave of frauds at Chinese-based companies. The deceits have humiliated auditors and money managers who trusted or vouched for the companies, while enriching short-sellers who spotted the frauds early.

Finra Conflicted On Facebook Mess [FierceFinanceIT] The Facebook fiasco continues to reverberate on Wall Street, as some market makers wonder if they will get a raw deal from a decision by the Nasdaq to have Finra review contested Facebook trades.

BDs Beware: Social Media Privacy Laws May Conflict With FINRA Rules [AdvisorOne] Broker-dealers take heed: state and federal social media privacy legislation limiting employers’ access to employees’—and prospective employees’—social media accounts could conflict with the social media rules issued by the Financial Industry Regulatory Authority (FINRA).

Exclusive: Barclays’ Diamond Turns to Top Lawyer For Libor Scandal [Reuters] Barclays’ embattled former chief executive Bob Diamond is being represented by top white-collar defense lawyer Andrew Levander in a widening scandal over the manipulation of benchmark interest rates, Levander’s law firm confirmed on Thursday. More than a dozen current and former employees of several large banks under investigation have hired defense lawyers over the past year, but Levander’s role is one of the most high-profile.

Peregrine Financial Trustee Seeks Approval on liquidation Plan [Reuters] The trustee of Peregrine Financial Group Inc, the regulated unit of the collapsed Iowa-based brokerage PFGBest, has sought bankruptcy court permission to operate the business with the aim of liquidating its assets, according to a court filing. Trustee Ira Bodenstein has also asked the court’s permission to retain 57 employees to assist him in the liquidation process.

Mizuho Financial Likely to Face Civil Charges In CDO Case: WSJ [Chicagotribune] Japan’s Mizuho Financial Group Inc is likely to face civil charges over the sale of a $1.6 billion mortgage bond deal five years ago, which led to losses for investors, the Wall Street Journal said, citing people close to the investigation.