Post by jannikki on Mar 4, 2007 11:31:23 GMT -4
U.S. Is Investigating Trades Made Just Before TXU Deal
By ERIC DASH
Published: March 3, 2007
Federal regulators froze more than $5.3 million that they suspect may be profits from insider trading of TXU stock options that occurred just days before a $45 billion buyout of the Texas energy company.
The Securities and Exchange Commission is trying to identify who made at least three large and unusually well-timed bets that TXU’s stock would rise.
The trading occurred from Feb. 21 to Feb. 23; two private equity firms, Kohlberg Kravis Roberts & Company and the Texas Pacific Group, announced the deal on Feb. 26.
Federal investigators hope to track down the traders by untangling a web of transactions that passed through offshore accounts of several large banks and brokerage firms.
In papers filed yesterday in Federal District Court in Chicago, the S.E.C. froze more than $5.3 million that may be held in the domestic accounts of UBS Securities, Credit Suisse and Fimat Banque Frankfurt. It hopes to recover any gains linked to insider trading. Without the identities of any suspects, the commission said that it would need help from its counterparts overseas.
Yesterday’s action comes as securities regulators have been signaling their intent to crack down on insider trading. On Thursday, the S.E.C. and the Justice Department accused more than a dozen people and hedge funds of making more than $15 million from an insider trading ring.
It is unclear whether the Justice Department is pursuing its own insider trading case related to TXU. A spokeswoman for the United States attorney’s office in Dallas, Kathy Colvin, declined to comment about whether it is investigating.
But federal securities regulators said they were trying to track down the traders who placed big bets be........(more)
www.nytimes.com/2007/03/03/business/03insider.html
By ERIC DASH
Published: March 3, 2007
Federal regulators froze more than $5.3 million that they suspect may be profits from insider trading of TXU stock options that occurred just days before a $45 billion buyout of the Texas energy company.
The Securities and Exchange Commission is trying to identify who made at least three large and unusually well-timed bets that TXU’s stock would rise.
The trading occurred from Feb. 21 to Feb. 23; two private equity firms, Kohlberg Kravis Roberts & Company and the Texas Pacific Group, announced the deal on Feb. 26.
Federal investigators hope to track down the traders by untangling a web of transactions that passed through offshore accounts of several large banks and brokerage firms.
In papers filed yesterday in Federal District Court in Chicago, the S.E.C. froze more than $5.3 million that may be held in the domestic accounts of UBS Securities, Credit Suisse and Fimat Banque Frankfurt. It hopes to recover any gains linked to insider trading. Without the identities of any suspects, the commission said that it would need help from its counterparts overseas.
Yesterday’s action comes as securities regulators have been signaling their intent to crack down on insider trading. On Thursday, the S.E.C. and the Justice Department accused more than a dozen people and hedge funds of making more than $15 million from an insider trading ring.
It is unclear whether the Justice Department is pursuing its own insider trading case related to TXU. A spokeswoman for the United States attorney’s office in Dallas, Kathy Colvin, declined to comment about whether it is investigating.
But federal securities regulators said they were trying to track down the traders who placed big bets be........(more)
www.nytimes.com/2007/03/03/business/03insider.html