Compliancex

Loser Citi Lawsuit Sends SEC Back to Drawing Board [Reuters] A loser lawsuit against a Citigroup (C.N) banker should send the U.S. Securities and Exchange Commission back to the drawing board. A federal jury cleared Brian Stoker of misleading CDO investors, while also urging the watchdog to bring more financial fraud charges. But quantity isn’t the issue. The SEC has filed over 100 crisis-related suits. What’s too often lacking, as with the Citi example, is a solid case.

AIG Pushing Plan for Independence [WSJ] American International Group Inc. is looking to buy back a large amount of its shares from the government, according to people familiar with the company’s thinking, in a push that could make the U.S. a minority shareholder by the fall and enable the insurer to fully repay its bailout sooner than expected.

New York Property Tax Changes Recommended By Grand Jury [Bloomberg] New York City’s property-tax system needs to be changed to prevent false document filings, a state grand jury found. The grand jury’s report, announced today by Manhattan District Attorney Cyrus R. Vance Jr., examined the filing of false documents and information about properties including rentals, condominiums, cooperatives, hotels and parking garages. Authorities don’t have enough power to deter false filings and face a high cost to investigate them, the grand jury said.

Some PayPal Users Criticize Antifraud Measures [TheNewYorkTimes] Jorge Espinoza, the founder of PreRace, a Web site where bicyclists and runners can register for races, was on a roll in March. In three days his site took in over $1 million in registrations for a major bike race, much more than usual.

As Banking Titans Reflect on Their Errors, Few Pay Any Price [DealBook] Like a defecting Syrian colonel or converted climate-change denier, Sanford I. Weill has been heartily welcomed among those on the right side of history. The sheer inappropriateness of the vessel, the breathtaking audacity of the messenger, can oddly confer authority on an idea. If even the creator of Citigroup now believes that the giant banks should be broken up, who could not believe it?

Flood of Errant Trades Is a Black Eye for Wall Street [TheNewYorkTimes] An automated stock trading program suddenly flooded the market with millions of trades Wednesday morning, spreading turmoil across Wall Street and drawing renewed attention to the fragility and instability of the nation’s stock markets.

Under Pressure, Biggest Banks Rely on 3 Myths [TheNewYorkTimes] Jamie Dimon, the chief executive of JPMorgan Chase and a vociferous opponent of restrictions on reckless risk-taking by big banks, presided over large losses because of exactly such behavior in the company’s London office.

Regulators looking into Knight Capital’s trading error: CBOE [Reuters] U.S. regulators are looking into Knight Capital Group Inc’s trading error Wednesday that caused a rush of orders for dozens of stocks on the New York Stock Exchange, the chief of the biggest U.S. options market said.

Ponzi schemer faces new woes [SunSentinel] Convicted Ponzi schemer Joseph D. Ransberger has been accused in a new plot, this time to allegedly defraud insurance premium finance companies to help pay for a lavish lifestyle.