Supreme Court: Janus Not Liable for Securities Fraud
The Supreme Court ruled June 13 that Janus Capital Group could not be sued for securities fraud over misstatements in its mutual funds’ prospectuses.
Regulation
Column: Pension Quandary in Valuing Liabilities
From aiCIO Magazine's Summer Issue: Legislation has been proposed in Congress that would force states to publish their liabilities using corporate rates. This all leads to the question: What really is the right rate?
Cuomo Proposes Plan to Slash N.Y. Public Pensions, Labor Furious
Governor Andrew Cuomo has proposed a plan to reform the New York public pension system that has public employees unions clamoring.
PBGC Joins Suit Against Morgan Stanley Over Risky Investments That Hurt Pension
The Pension Benefit Guaranty Corporation has joined a lawsuit against Morgan Stanley, seeking $25 million in damages over risky pension investments the bank made for New York's Saint Vincent Catholic Medical Centres' pension plan and its participants.
News of the Absurd?: $326 Bill Turns Into $160,000 in Legal Fees for Florida Pension
A lawsuit over a few hundred dollars has ballooned into legal costs of more than 490x the original suit for Jacksonville's Police and Fire Pension Fund.
California Pension Sues Wilshire Associates
The $2.7 billion Kern County Employees' Retirement Association (KCERA) of California has filed a lawsuit against Wilshire Associates for loss of about $4 million.
DiNapoli Aims to Turn Placement Agent Ban Into Law
New York State Comptroller Thomas P. DiNapoli has proposed legislation to codify his ban on the involvement of placement agents, paid intermediaries and registered lobbyists in investments with the Common Retirement Fund (CRF).
Aon Hewitt Says Changes to UK Accounting Standards Could Massively Increase Shortfalls
Consultancy Aon Hewitt cautions that while the pensions deficit for the UK’s largest companies remained stable in May, major changes to accounting standards could increase shortfalls by £10 billion.
After String of Lawsuits, Mass. Pension Joins FX Trading Probe
The chief investment officer of the Massachusetts Pension Reserves Investment Management (MassPRIM) board says it has hired foreign-exchange transaction cost consultant FX Transparency to analyze the state system’s currency trades for 2009 and 2010.
Citi Urges Dismissal of $1.3 Billion Lehman Suit
Citigroup is aiming to dismiss efforts by Lehman Brothers to recover $1 billion in collateral that the investment bank was forced to post when it was approaching bankruptcy in 2008, Bloomberg is reporting.
Houston Pension Sues Highland, JP Morgan
A Houston pension plan has sued Highland Capital Management, the debt manager with about $22 billion in assets under management, and JPMorgan Chase & Co. over claims that willful looting led to the shutdown of the Highland Crusader Fund.
New SEC Rules Offer Incentives to Whistleblowers
The US Securities and Exchange Commission has adopted new rules to expand its authority to reward whistleblowers with the use of financial incentives.
SEC Joins Other Entities in Investigating FX Trading
The Securities and Exchange Commission (SEC) is looking into whether both State Street and BNY Mellon misrepresented how they intended to conduct foreign exchange trades.
SDCERA Whistleblower: Outside Consultant Breached Risk Limits
Jeffrey Baker, an SDCERA official, is alleging as part of a complaint that his job is being eliminated because he raised concerns over outside consultant Lee Partridge's risk limits, yet Partridge denies the assertions.
California Court Reinstates Pension Suit Against Countrywide
An appeals court has overturned the dismissal of a class-action lawsuit brought by investors against Countrywide Financial Corp. over risky mortgage-backed securities bought between 2005 and 2007.