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Receiving Wide Coverage ...SAC Sacked: Federal prosecutors are expected to announce criminal charges this week against hedge-fund giant SAC Capital Advisors for alleged insider trading, the papers are reporting through anonymous sources. The Times says such a charge would likely be a "death blow" to the firm already saddled with government investigations, potentially causing trading partners like Goldman Sachs and Morgan Stanley to pull out. The papers also focused on the firm's founder, Steven A. Cohen, who is not expected to be charged by prosecutors in the multiyear probe. But fear not. Cohen is scheduled to face off with the Securities and Exchange Commission in August for not properly overseeing two traders charged with insider trading. Perhaps he would have known had he read his email.
July 24 -
Assistant Attorney General Mythili Raman acknowledges "complexities" in investigating bigger banks but tells a House panel that they "do not equal immunity" from criminal action.
May 22 -
A former leader of a Mormon congregation in Connecticut has pleaded guilty to charges he laundered hundreds of thousands of dollars through a bank that received funds from the Troubled Asset Relief Program.
February 21
The former chairman and chief executive of Summit Bank in Burlington, Wash., on Wednesday pleaded guilty to hiding millions of dollars in losses from past-due loans.
James Bishop admitted in federal court in Seattle to conspiring with his son James Bishop II, who was then bank president, to conceal Summit's mounting losses from reports to the Federal Insurance Deposit Corp. between 2009 and 2011. The former CEO could spend between a year and 41 months in prison under the terms of the plea agreement, according to an
Bishop will also pay $300,000 to the FDIC and agree to a lifetime ban from banking. His son has been charged in the case and is scheduled for a plea hearing on Sept. 5.
Summit was ultimately closed by state regulators and sold
"Our economy depends on every bank following the rules. Banking rules protect individual depositors as well as our financial system," U.S. Attorney Jenny Durkan said in a press release. "These defendants both experienced bankers took a myriad of steps to hide the true financial condition of Summit Bank from federal and state regulators."
