UBS expects to be sued by US Justice Department over crisis-era mortgage securities

The U.S. Department of Justice did not immediately respond to a request for comment. UBS said it had been advised by the Justice Department that the law enforcement agency intends to file the civil complaint. It anticipates the Justice Department will seek unspecified monetary penalties regarding the mortgage securities, which date back to 2006 and 2007. The lawsuit would be among the last actions over misconduct in the sale and pooling of mortgage securities which helped to cause the financial


The U.S. Department of Justice did not immediately respond to a request for comment. UBS said it had been advised by the Justice Department that the law enforcement agency intends to file the civil complaint. It anticipates the Justice Department will seek unspecified monetary penalties regarding the mortgage securities, which date back to 2006 and 2007. The lawsuit would be among the last actions over misconduct in the sale and pooling of mortgage securities which helped to cause the financial
UBS expects to be sued by US Justice Department over crisis-era mortgage securities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, justice, sued, group, expects, sale, sought, bank, ubs, law, mortgage, department, crisisera, settled, securities


UBS expects to be sued by US Justice Department over crisis-era mortgage securities

UBS Group, Switzerland’s largest bank, said it expects to be sued by the U.S. Department of Justice as early as Thursday on civil charges related to the sale of mortgage-backed securities in the run-up to the 2008-2009 financial crisis, according to a company statement.

The bank said the claims were not supported by the facts or the law and it would contest any such complaint “vigorously.”

The U.S. Department of Justice did not immediately respond to a request for comment.

UBS said it had been advised by the Justice Department that the law enforcement agency intends to file the civil complaint.

It anticipates the Justice Department will seek unspecified monetary penalties regarding the mortgage securities, which date back to 2006 and 2007.

The lawsuit would be among the last actions over misconduct in the sale and pooling of mortgage securities which helped to cause the financial crisis.

The Department of Justice has settled similar claims with Citigroup, Deutsche Bank, JPMorgan Chase, Credit Suisse Group, Morgan Stanley, Goldman Sachs, Bank of America and Barclays.

Barclays settled for $2 billion in March after resisting a penalty the U.S. government sought near the end of the Obama administration in 2016. Justice had sought a much higher fine at the time and, when the two sides could not come to terms, the department filed a lawsuit.

More recently, HSBC Holdings agreed to pay $765 million last month to settle with the Justice Department over its sale of defective mortgage securities before the crisis, while major player Royal Bank of Scotland Group reached a $4.9 billion deal in May.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, justice, sued, group, expects, sale, sought, bank, ubs, law, mortgage, department, crisisera, settled, securities


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Trump administration has not settled on a plan for what to do if the migrant caravan arrives at the US border

Nielsen responded that Bolton, not a frequent attendant of the immigration meetings, was no expert on the topic, they said. Meanwhile, administration officials sounded off Tuesday on an increase in families coming across the border, mostly from Central America. Coupled with the caravan, Trump administration officials have said it’s a full-on crisis. Trump tweeted: “Sadly, it looks like Mexico’s Police and Military are unable to stop the Caravan heading to the Southern Border of the United States


Nielsen responded that Bolton, not a frequent attendant of the immigration meetings, was no expert on the topic, they said. Meanwhile, administration officials sounded off Tuesday on an increase in families coming across the border, mostly from Central America. Coupled with the caravan, Trump administration officials have said it’s a full-on crisis. Trump tweeted: “Sadly, it looks like Mexico’s Police and Military are unable to stop the Caravan heading to the Southern Border of the United States
Trump administration has not settled on a plan for what to do if the migrant caravan arrives at the US border Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-24  Authors: jorge cabrera
Keywords: news, cnbc, companies, department, migrant, arrives, administration, mexico, immigration, trump, border, nielsen, security, children, settled, united, caravan, plan


Trump administration has not settled on a plan for what to do if the migrant caravan arrives at the US border

But the president’s inner circle on immigration is grappling with the same problems that have plagued them for months, absent any law change by Congress.

Some in Trump’s administration, like Homeland Security Secretary Kirstjen Nielsen, advocate for a diplomatic approach using relationships with Honduras, Mexico, and El Salvador and the United Nations to stop the flow of migrants arriving to the U.S.

“We fully support the efforts of Guatemala, Honduras and Mexico as they seek to address this critical situation and ensure a safer and more secure region,” Nielsen said in statement earlier this week that noted her department was closely monitoring the possibility of gangs or other criminals that prey on those in “irregular migration.”

But others are agitating for more immediate options, including declaring a state of emergency, which would give the administration broader authority over how to manage people at the border; rescinding aid; or giving parents who arrive to the U.S. a choice between being detained months or years with their children while pursuing asylum, or releasing their children to a government shelter while a relative or guardian seeks custody.

Tensions boiled over last week, when Nielsen suggested going to the United Nations Committee on Human Rights in a meeting with White House chief of staff John Kelly. National security adviser John Bolton, a longtime critic of the U.N., exploded over the idea, the officials and people said. Nielsen responded that Bolton, not a frequent attendant of the immigration meetings, was no expert on the topic, they said.

White House spokeswoman Sarah Huckabee Sanders later said in a statement: “While we are passionate about solving the issue of illegal immigration, we are not angry at one another. However, we are furious at the failure of Congressional Democrats to help us address this growing crisis.”

Meanwhile, administration officials sounded off Tuesday on an increase in families coming across the border, mostly from Central America. Nearly a third of all people apprehended at the U.S.-Mexico border during the budget year 2018 were families and children — about 157,248 out of 395,579 total apprehensions.

Coupled with the caravan, Trump administration officials have said it’s a full-on crisis. They say loopholes in laws have allowed for a worsening border crisis where the vast majority of people coming illegally to the U.S. cannot be easily returned home.

But the administration’s efforts to enforce a hard-line stance on immigration through regulation changes and executive orders have been largely thwarted by the court system and, in the case of family separations earlier this year, stymied by a global outcry that prompted Trump to scrap separations through an executive order June 20.

While such caravans have occurred semiregularly over the years, this one has become a hot topic ahead of the Nov. 6 midterm elections. The march appeared to begin as a group of about 160 who decided to band together in Honduras for protection against the gangs who prey on migrants travelling alone and snowballed as the group moved north.

If they arrive, they are likely to face long lines at ports of entry. Family detention space is limited to about 3,300 beds nationally, and, under a court settlement, children can generally be held no more than 20 days, so many would likely be released.

In a letter to the Department of Homeland Security and the State Department on Tuesday, Senate Judiciary Chairman Chuck Grassley and Sen. Mike Lee suggested that the administration make a “third party” agreement with Mexico that would force any caravan members seeking asylum to do so in their country of arrival — Mexico. The Republican lawmakers said the process already works that way in Europe.

Trump tweeted: “Sadly, it looks like Mexico’s Police and Military are unable to stop the Caravan heading to the Southern Border of the United States.” He said he had alerted Border Patrol and the military and called for a change in laws, and said that people of Middle Eastern descent had joined the group.

He later acknowledged that his claim was only a hunch.

“They could very well be,” he said. “There’s no proof of anything. But there could very well be.”

Asked if he was implying there were terrorists in the caravan, Trump said, “There could very well be.”

Tyler Houlton, a spokesman for Homeland Security, later tweeted that the department could confirm that gang members or serious criminals are in the caravan, but he didn’t provide details.

It was the latest effort to thrust immigration politics into the national conversation in the closing weeks of the congressional elections. He and his senior aides have long believed the issue — which was a centerpiece of his winning presidential campaign — is key to motivating GOP voters to turn out.

“Blame the Democrats,” he wrote. “Remember the midterms.”


Company: cnbc, Activity: cnbc, Date: 2018-10-24  Authors: jorge cabrera
Keywords: news, cnbc, companies, department, migrant, arrives, administration, mexico, immigration, trump, border, nielsen, security, children, settled, united, caravan, plan


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Tesla shares surge 15 percent after SEC settlement

Tesla shares surged 15 percent in morning trading Monday, opening at $305.77, after CEO Elon Musk settled charges with the Securities and Exchange Commission. The SEC charged Musk with fraud Thursday alleging he issued “false and misleading” statements and failed to properly notify regulators of material company events. The SEC also imposed a fine of $20 million on Tesla. Over the weekend Musk sent an email to staff saying that Tesla was “very close’ to being profitable. Correction: The SEC char


Tesla shares surged 15 percent in morning trading Monday, opening at $305.77, after CEO Elon Musk settled charges with the Securities and Exchange Commission. The SEC charged Musk with fraud Thursday alleging he issued “false and misleading” statements and failed to properly notify regulators of material company events. The SEC also imposed a fine of $20 million on Tesla. Over the weekend Musk sent an email to staff saying that Tesla was “very close’ to being profitable. Correction: The SEC char
Tesla shares surge 15 percent after SEC settlement Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-01  Authors: arjun kharpal
Keywords: news, cnbc, companies, saying, shares, tesla, surge, charges, staff, 15, musk, million, sec, settlement, settled, charged, morning


Tesla shares surge 15 percent after SEC settlement

Tesla shares surged 15 percent in morning trading Monday, opening at $305.77, after CEO Elon Musk settled charges with the Securities and Exchange Commission.

The SEC charged Musk with fraud Thursday alleging he issued “false and misleading” statements and failed to properly notify regulators of material company events. The charges were in relation to a tweet that Musk posted in August saying he was considering taking the electric carmaker public at $420 a share.

On Saturday, Musk settled the charges with the SEC, agreeing to pay a civil penalty of $20 million and give up his role as chairman of the board for at least three years. The SEC also imposed a fine of $20 million on Tesla. The carmaker must also appoint two independent directors to the board.

Under the deal’s terms, Musk and Tesla neither admit or deny wrongdoing alleged by regulators.

Tesla’s gains Monday morning erase the stock’s 14 percent plunge on Friday.

Investors will now be focusing on Tesla’s next earnings report. Over the weekend Musk sent an email to staff saying that Tesla was “very close’ to being profitable. In two emails obtained by CNBC, Musk told staff to “ignore the distractions” and that the company was close to “proving naysayers wrong.”

Correction: The SEC charged Elon Musk with fraud. An earlier version of this story incorrectly said Tesla had been charged.


Company: cnbc, Activity: cnbc, Date: 2018-10-01  Authors: arjun kharpal
Keywords: news, cnbc, companies, saying, shares, tesla, surge, charges, staff, 15, musk, million, sec, settlement, settled, charged, morning


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Ireland says Trump canceled visit, but the White House says it’s not settled yet

President Donald Trump has canceled a planned trip to Ireland in November, a spokeswoman for the Irish Prime Minister confirmed Tuesday to CNBC. White House Press Secretary Sarah Sanders, however, refused to confirm that the Irish leg of the planned trip was off. The White House announced in late August that Trump would visit Ireland “to renew the deep and historic ties between our two nations.” Almost immediately after Trump’s visit was announced, the prospect of the controversial U.S. presiden


President Donald Trump has canceled a planned trip to Ireland in November, a spokeswoman for the Irish Prime Minister confirmed Tuesday to CNBC. White House Press Secretary Sarah Sanders, however, refused to confirm that the Irish leg of the planned trip was off. The White House announced in late August that Trump would visit Ireland “to renew the deep and historic ties between our two nations.” Almost immediately after Trump’s visit was announced, the prospect of the controversial U.S. presiden
Ireland says Trump canceled visit, but the White House says it’s not settled yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-11  Authors: christina wilkie, kevin breuninger, mandel ngan, afp, getty images, source, chris hondros, john gress, cameron costa
Keywords: news, cnbc, companies, trip, visit, ireland, president, trumps, confirmed, white, house, trump, canceled, irish, told, planned, settled


Ireland says Trump canceled visit, but the White House says it's not settled yet

President Donald Trump has canceled a planned trip to Ireland in November, a spokeswoman for the Irish Prime Minister confirmed Tuesday to CNBC.

“The proposed visit of the US President is postponed,” Information Services officer Laura Durkan told CNBC, adding “The US side has cited scheduling reasons.”

White House Press Secretary Sarah Sanders, however, refused to confirm that the Irish leg of the planned trip was off.

“We are still finalizing whether Ireland will be a stop on that trip. As details are confirmed we will let you know,” she told pool reporters on Tuesday, after the Irish government had confirmed that Trump’s trip was postponed.

The White House announced in late August that Trump would visit Ireland “to renew the deep and historic ties between our two nations.”

The stopover in Ireland would have been part of a trip that also includes a visit to Paris, where Trump plans to commemorate the 100th anniversary of Armistice Day on November 11. Sanders said Trump “will travel to Paris in November as previously announced,”

The president owns a golf course in Ireland, the Trump Doonbeg in County Clare. He had reportedly planned to visit his club during the trip, as well.

Almost immediately after Trump’s visit was announced, the prospect of the controversial U.S. president in Ireland sparked calls for protests.

Eamon Ryan, the leader of Ireland’s Green Party called on the Irish people to “show their disgust and rejection of the Trump administration’s policies by turning out, as we did during the Iraq War in 2003, in large-scale mass protest around the country.”

Earlier this year, Trump’s visit to England was marred by images of tens of thousands of protesters in the streets of London, carrying signs that said “Dump Trump” and accusing the president of racism. There was also an enormous balloon flown over Parliament Square during Trump’s visit that depicted the president as an angry baby wearing only a diaper.

This is a developing story, please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2018-09-11  Authors: christina wilkie, kevin breuninger, mandel ngan, afp, getty images, source, chris hondros, john gress, cameron costa
Keywords: news, cnbc, companies, trip, visit, ireland, president, trumps, confirmed, white, house, trump, canceled, irish, told, planned, settled


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Brett Kavanaugh told Sen. Susan Collins Roe v. Wade is settled law

Supreme Court nominee Brett Kavanaugh thinks the landmark Roe v. Wade ruling on abortion rights is settled law. That’s according to Sen. Susan Collins, a Republican senator from Maine who met for two hours with the judge on Tuesday. Collins, who supports abortion rights, says she talked “at great length” with Kavanaugh about the application of established precedent to abortion cases. She says she will not make a decision on how to vote until after the Senate Judiciary Committee holds confirmatio


Supreme Court nominee Brett Kavanaugh thinks the landmark Roe v. Wade ruling on abortion rights is settled law. That’s according to Sen. Susan Collins, a Republican senator from Maine who met for two hours with the judge on Tuesday. Collins, who supports abortion rights, says she talked “at great length” with Kavanaugh about the application of established precedent to abortion cases. She says she will not make a decision on how to vote until after the Senate Judiciary Committee holds confirmatio
Brett Kavanaugh told Sen. Susan Collins Roe v. Wade is settled law Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-21  Authors: andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, wade, susan, told, thinks, vote, talked, sen, roe, rights, settled, abortion, tuesdaycollins, thats, kavanaugh, law, collins


Brett Kavanaugh told Sen. Susan Collins Roe v. Wade is settled law

Supreme Court nominee Brett Kavanaugh thinks the landmark Roe v. Wade ruling on abortion rights is settled law. That’s according to Sen. Susan Collins, a Republican senator from Maine who met for two hours with the judge on Tuesday.

Collins, who supports abortion rights, says she talked “at great length” with Kavanaugh about the application of established precedent to abortion cases. She says they also discussed executive power and his judicial philosophy, among other subjects.

Collins is considered a potential swing vote on Kavanaugh’s nomination. She says she will not make a decision on how to vote until after the Senate Judiciary Committee holds confirmation hearings in early September.

Republicans hope to have Kavanaugh confirmed by the start of the court’s next session, which starts Oct. 1.


Company: cnbc, Activity: cnbc, Date: 2018-08-21  Authors: andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, wade, susan, told, thinks, vote, talked, sen, roe, rights, settled, abortion, tuesdaycollins, thats, kavanaugh, law, collins


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Sonos pops 15% then fluctuates to more modest gains a day after its market debut

Smart speaker maker Sonos popped as much as 15 percent, then settled to modest gains Friday, a day after its stock market debut. The stock got off to a slow start Thursday, opening just 7 percent higher than its lower-than-expected initial price. But shares gained more than 30 percent by the end of trading day and rose as high as $23.60 in the first half hour of trading Friday. By late morning, it was up 5.7 percent.


Smart speaker maker Sonos popped as much as 15 percent, then settled to modest gains Friday, a day after its stock market debut. The stock got off to a slow start Thursday, opening just 7 percent higher than its lower-than-expected initial price. But shares gained more than 30 percent by the end of trading day and rose as high as $23.60 in the first half hour of trading Friday. By late morning, it was up 5.7 percent.
Sonos pops 15% then fluctuates to more modest gains a day after its market debut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-03  Authors: sara salinas, devin burris
Keywords: news, cnbc, companies, start, settled, speaker, stock, modest, smart, slow, market, debut, day, trading, shares, pops, gains, fluctuates, sonos, 15


Sonos pops 15% then fluctuates to more modest gains a day after its market debut

Smart speaker maker Sonos popped as much as 15 percent, then settled to modest gains Friday, a day after its stock market debut.

The stock got off to a slow start Thursday, opening just 7 percent higher than its lower-than-expected initial price. But shares gained more than 30 percent by the end of trading day and rose as high as $23.60 in the first half hour of trading Friday.

By late morning, it was up 5.7 percent.


Company: cnbc, Activity: cnbc, Date: 2018-08-03  Authors: sara salinas, devin burris
Keywords: news, cnbc, companies, start, settled, speaker, stock, modest, smart, slow, market, debut, day, trading, shares, pops, gains, fluctuates, sonos, 15


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SEC settles lawsuit against for-profit college executives

The U.S. Securities and Exchange Commission on Friday said it settled a lawsuit against two former ITT Educational Services executives accused of hiding the defunct for-profit college operator’s actual financial condition from investors. Modany and Fitzpatrick settled the lawsuit without admitting or denying the SEC’s claims that they acted as so-called “control persons” for ITT’s securities violations. The SEC settled its case against ITT in July 2017, after reaching agreements-in-principle two


The U.S. Securities and Exchange Commission on Friday said it settled a lawsuit against two former ITT Educational Services executives accused of hiding the defunct for-profit college operator’s actual financial condition from investors. Modany and Fitzpatrick settled the lawsuit without admitting or denying the SEC’s claims that they acted as so-called “control persons” for ITT’s securities violations. The SEC settled its case against ITT in July 2017, after reaching agreements-in-principle two
SEC settles lawsuit against for-profit college executives Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-07-06  Authors: adam jeffery
Keywords: news, cnbc, companies, lawsuit, court, executives, settles, forprofit, settled, fitzpatrick, settlements, programs, college, officer, itt, sec, modany


SEC settles lawsuit against for-profit college executives

The U.S. Securities and Exchange Commission on Friday said it settled a lawsuit against two former ITT Educational Services executives accused of hiding the defunct for-profit college operator’s actual financial condition from investors.

The settlements with former Chief Executive Officer Kevin Modany and former Chief Financial Officer Daniel Fitzpatrick came ahead of a trial scheduled for Monday in federal court in Indianapolis, Indiana.

The deal came after the SEC’s commissioners took the rare step last year of rejecting an earlier proposed settlement negotiated between the defendants and the agency’s staff.

Under Friday’s settlements, both men agreed to be barred from serving as officers and directors of publicly-traded companies for five years. Modany and Fitzpatrick will also pay penalties of $200,000 and $100,000, respectively.

Modany and Fitzpatrick settled the lawsuit without admitting or denying the SEC’s claims that they acted as so-called “control persons” for ITT’s securities violations.

David Miller, Modany’s lawyer, and Fredric Firestone, Fitzpatrick’s lawyer, said both men were pleased to put the case behind them.

In 2015, the SEC sued Carmel, Indiana-based ITT, Modany and Fitzpatrick and accused them of fraudulently concealing from its investors potentially huge losses in two student loan programs that the for-profit college operator had guaranteed.

The SEC said that by 2012, the loans made through those programs were performing abysmally, with high default rates.

But instead of disclosing that it expected to owe hundreds of millions of dollars because its guarantee obligations had been triggered, ITT and its management took steps to make its exposure to the programs appear limited, the SEC said.

In 2016, the U.S. Department of Education banned ITT from enrolling new students who receive federal aid.

ITT subsequently announced it would shut its 137 technical college campuses in 39 states, which affected about 35,000 students. It filed for bankruptcy in September 2016.

The SEC settled its case against ITT in July 2017, after reaching agreements-in-principle two months earlier to resolve the charges against Modany and Fitzpatrick.

But in August 2017, SEC attorneys informed the court that the agency’s commissioners had rejected the proposed settlements with Modany and Fitzpatrick.

Democratic Senators Dick Durbin of Illinois and Sherrod Brown of Ohio wrote to SEC Chairman Jay Clayton in June 2017 urging the SEC to permanently bar Modany from acting as an officer of a publicly traded company and to seek tough penalties against him and Fitzpatrick.

The case is SEC v. ITT Educational Services Inc et al, U.S. District Court, Southern District of Indiana, No. 15-00758.


Company: cnbc, Activity: cnbc, Date: 2018-07-06  Authors: adam jeffery
Keywords: news, cnbc, companies, lawsuit, court, executives, settles, forprofit, settled, fitzpatrick, settlements, programs, college, officer, itt, sec, modany


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Trump privately indicated that he has settled on a Supreme Court nominee

President Donald Trump privately indicated to a small group this week that he has settled on a nominee to succeed Justice Anthony Kennedy on the Supreme Court, according to a person with direct knowledge of the matter. That source, along with another person familiar with the negotiations, said the president gave strong indications that he prefers D.C. Still, the sources insisted that Trump could change his mind. Kavanaugh, Kethledge and Barrett met with Trump on July 2 at the White House. A Whit


President Donald Trump privately indicated to a small group this week that he has settled on a nominee to succeed Justice Anthony Kennedy on the Supreme Court, according to a person with direct knowledge of the matter. That source, along with another person familiar with the negotiations, said the president gave strong indications that he prefers D.C. Still, the sources insisted that Trump could change his mind. Kavanaugh, Kethledge and Barrett met with Trump on July 2 at the White House. A Whit
Trump privately indicated that he has settled on a Supreme Court nominee Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-07-05  Authors: brian schwartz, brendan smialowski, afp, getty images
Keywords: news, cnbc, companies, nominee, supreme, trump, court, president, kavanaugh, white, succeed, privately, person, house, sources, settled, indicated


Trump privately indicated that he has settled on a Supreme Court nominee

President Donald Trump privately indicated to a small group this week that he has settled on a nominee to succeed Justice Anthony Kennedy on the Supreme Court, according to a person with direct knowledge of the matter.

During the July 4 picnic at the White House, Trump suggested to friends and some external advisors that he had already made up his mind about whom he will pick to join the high court, the person said on the condition of anonymity due to the sensitive nature of the ongoing deliberations.

That source, along with another person familiar with the negotiations, said the president gave strong indications that he prefers D.C. Circuit Court of Appeals Judge Brett Kavanaugh. Vice President Mike Pence, meanwhile, would throw his backing behind whoever the president nominates, a source said.

Trump and Pence believe Kavanaugh is considered the safest choice to reel in undecided senators, given his mixed opinions on a wide range of issues, including President Barack Obama’s Affordable Care Act and Roe v. Wade, the sources said.

Still, the sources insisted that Trump could change his mind. While Kavanaugh is the favorite, the other leading contenders are federal judges Raymond Kethledge of the Sixth Circuit Court of Appeals and Judge Amy Coney Barrett of the Seventh Circuit.

Kavanaugh, Kethledge and Barrett met with Trump on July 2 at the White House. Trump plans to announce his choice the night of Monday, July 9.

A White House official told CNBC that the president has yet to lay out his Supreme Court decision to his team and would not confirm or deny which candidate is favored to succeed Kennedy.

A spokeswoman for Pence’s office declined to comment.


Company: cnbc, Activity: cnbc, Date: 2018-07-05  Authors: brian schwartz, brendan smialowski, afp, getty images
Keywords: news, cnbc, companies, nominee, supreme, trump, court, president, kavanaugh, white, succeed, privately, person, house, sources, settled, indicated


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Leon Cooperman: Two changes that could help fix what is wrong with our regulatory process

As you may know, last spring, Omega and I settled a case brought by the SEC against us in September 2016, alleging various violations of federal securities laws. But I am free to express my views on how the agency handled this matter without violating those prohibitions. Without the vigorous discharge of that oversight function, public faith in those markets would suffer and they could not operate smoothly. We commenced voluminous document production in response to the subpoenas, running up mill


As you may know, last spring, Omega and I settled a case brought by the SEC against us in September 2016, alleging various violations of federal securities laws. But I am free to express my views on how the agency handled this matter without violating those prohibitions. Without the vigorous discharge of that oversight function, public faith in those markets would suffer and they could not operate smoothly. We commenced voluminous document production in response to the subpoenas, running up mill
Leon Cooperman: Two changes that could help fix what is wrong with our regulatory process Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-05-22  Authors: leon cooperman, omega advisors chairman, adam jeffery
Keywords: news, cnbc, companies, fix, matter, cooperman, regulatory, securities, subpoenas, help, changes, omega, leon, wrong, legal, business, settlement, settled, case, process


Leon Cooperman: Two changes that could help fix what is wrong with our regulatory process

First and foremost, I am neither soliciting, nor deserve, anyone’s pity. I have lived and prospered from the American Dream. A first-generation American, I was raised in a South Bronx walk-up by my Polish immigrant parents, attended New York City public schools through college, and graduated from Columbia Business School in 1967 with a negative net worth and a young child at home.

I rose through the ranks at Goldman, Sachs & Co., which I left in late 1991 to launch Omega Advisors, Inc., the hedge fund firm where I, together with 32 colleagues, still work. Fortunate beyond my wildest expectations, I am a signatory to the Buffett/Gates Giving Pledge, and I expect to donate not half, but substantially all, of my financial wealth to charity upon my death. One of my guiding principles has long been that (as generally attributed to Andrew Carnegie) a man who dies rich, dies disgraced, and I have tried to arrange my affairs so that this can never be said of me.

As you may know, last spring, Omega and I settled a case brought by the SEC against us in September 2016, alleging various violations of federal securities laws. We settled because doing so saved us what were projected to be enormous legal costs, and a substantial diversion of time and attention over possibly years more of legal wrangling, had we gone to trial. I am still conflicted over that decision, but it is water under the bridge.

I am writing this to express my indignation at the egregious manner in which the agency conducted its investigation of my firm and me. As part of our settlement, we entered into “no admit, no deny” consents that prohibit us from publicly contesting the basis of the SEC’s case or the legitimacy of those allegations, and from commenting on the specific facts of the case or on the merits of our defenses. The outcome (more below) will have to speak for itself. But I am free to express my views on how the agency handled this matter without violating those prohibitions.

Just to be clear, I acknowledge the vital role that the SEC plays in policing the public securities markets in the United States and ensuring their integrity. Without the vigorous discharge of that oversight function, public faith in those markets would suffer and they could not operate smoothly. My issue is not with the principle but with its application.

When the agency issued broad subpoenas to Omega and me in March 2015, I promptly offered, through our lawyers, that if the subpoenas were withdrawn, I would meet voluntarily with the Commission staff and attempt to address all their questions about the trading and filings at issue. The subpoenas could always be reinstated if I could not satisfy them that nothing illicit was going on. In that context, I would have voluntarily tolled all relevant statutes of limitations so that the government’s claims regarding Atlas Pipeline Partners (APL, the company at the heart of the case they later filed), in particular, would not run in the interim. They refused my offer.

We commenced voluminous document production in response to the subpoenas, running up millions of dollars in legal and data-warehousing costs. That rolling production was substantially completed by the end of 2015, and the Wells notice followed in mid-March of the following year.

In September 2016, the SEC’s director of enforcement advised our counsel that the agency would not agree to settle without, among other things, an industry bar. He must have realized that this would have been tantamount to an admission of wrongdoing, effectively ending my otherwise spotless, 50-year career on Wall Street in disgrace. That was a non-starter for me, and I rejected their offer.

The Commission promptly filed suit, alleging, most notably, that we had traded in the securities of APL on the basis of material, non-public information, and less sensationally, that we had failed to make timely filings of certain securities holdings (but notably, not in APL). When we informed our investors, capital outflows (which ultimately aggregated to billions of dollars in assets under management) accelerated.

Even after announcing in May 2017 the settlement terms to which both sides finally agreed – which included no industry (or officer-and-director) suspension or bar, no admission of wrongdoing, a financial payment that was roughly half the original ask, an obey-the-law injunction, and various compliance enhancements – we continued to bleed assets, due, in large part, to the pall cast on us by the government’s unproven allegations. It seems that such damage, once inflicted, cannot be undone.

Adding salt to the wound, while “no admit, no deny” materially circumscribes what I can say about the case and its disposition, it apparently doesn’t tie the SEC’s hands to quite the same degree. In a statement released to the press shortly after our settlement, the agency’s acting director of enforcement characterized the financial payment to which Omega and I had agreed as having been levied for our “misconduct”, gratuitously omitting the word “alleged” even though, since the case was settled, the complaint’s allegations never had to be, and were never, proven in court. I guess that all-important distinction didn’t mesh well with the agency’s narrative.

At various points along the course of this saga, our lawyers informed the agency’s staff of the harm that these allegations were inflicting – on my business and on the professional prospects and earning opportunities of scores of honest, innocent, hardworking Omega employees – and of the protracted investigation’s potential implications for Omega’s continued viability as a going concern. Their entreaties fell on deaf ears.

Had the staff offered back in September 2016 to settle on the terms we ultimately agreed upon, I would have accepted, if only to preserve what then remained of my business and avoid the distraction and outsized expense of long-drawn-out litigation, but that deal was not then on the table. Instead, after the needless expenditure by both sides of financial and human resources of substantial magnitude, my business is a fraction the size and profitability it was, and the government got what it could have had, for the asking, eight or nine months earlier. Is this any way to manage the affairs of an ostensibly preeminent U.S. regulatory agency?

It seems logically manifest to me that something transpired between September 2016 and March 2017 that led to the Commission’s dramatically downwardly-revised settlement offer. Despite numerous attempts to ferret it out, I have been unsuccessful in getting a response, either from the current chairman or from his predecessor who oversaw my case (and who told me, when I saw her at a conference after she left office, that even innocent people often find settling with the government preferable to hazarding the system). As an American taxpayer, I believe that I deserve an answer to my question. And as an analytical person, it is hard for me to reconcile the significant, blood-sport destruction of my business that this matter has occasioned without understanding the dynamics behind the resolution from the Commission’s perspective.

But equally to the point, now that it’s all over, where do I go for redress? My colleagues and I are left to pick up the pieces, but as we do, the words of Raymond Donovan, Ronald Reagan’s former Labor Secretary and the first sitting cabinet officer to be indicted resonate with me. Although his was a state criminal matter and mine a federal civil one, the sentiment he expressed rings just as true here. When he and his co-defendants were acquitted at trial of all charges, he said: “It’s a cruel thing they did to me. The question is, should this indictment have ever been brought? What office do I go to, to get my reputation back? Who will reimburse my company for the economic jail it has been in for two-and-a-half years?”

Different office of a different government, but his questions are just as relevant today as they were 30 years ago. Powerless to force an answer to my question, it appears that I’m expected, like so many before me, to just suck it up and move on. Chalk up one more to regulatory unaccountability. I wish I were wired that way.

Given the vast resources of the federal government and the prospect of potentially ruinous legal costs and collateral damage that confront any defendant, it is little wonder that so many opt to throw in the towel and settle, rather than risk the vagaries and expense of extended litigation. In the end, the regulators, taxpayer-funded and shielded for the most part by sovereign immunity, not meaningfully accountable to anyone but themselves, pay no price for overreaching – a classic case of moral hazard. On the civil side, at least, that is a deplorable situation that cries out for remediation.

My suggestions: first, that when the government sues an individual or firm and loses in court or before a regulatory tribunal, the government reimburse its target’s legal expenses to the extent not covered by insurance (just as we, as taxpayers, already foot the government’s bills); and second, that in cases like mine, once the dust has settled and the jockeying for position has ended, the government show its hand privately to its target and demonstrate why it thought it had a case to begin with.

These two changes – the first a matter of cost-shifting, the second a matter of the salutary benefits of sunshine – might not solve all that is wrong with our regulatory process, but they would be a good start.


Company: cnbc, Activity: cnbc, Date: 2018-05-22  Authors: leon cooperman, omega advisors chairman, adam jeffery
Keywords: news, cnbc, companies, fix, matter, cooperman, regulatory, securities, subpoenas, help, changes, omega, leon, wrong, legal, business, settlement, settled, case, process


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North Korea says it won’t hold talks with the ‘incompetent’ South unless differences are settled

North Korea’s chief negotiator called the South Korean government “ignorant and incompetent” on Thursday, denounced U.S.-South Korean air combat drills and threatened to halt all talks with the South unless its demands are met. “Unless the serious situation which led to the suspension of the north-south high-level talks is settled, it will never be easy to sit face to face again with the present regime of south Korea,” the statement said. KCNA, in its English-language service, deliberately uses


North Korea’s chief negotiator called the South Korean government “ignorant and incompetent” on Thursday, denounced U.S.-South Korean air combat drills and threatened to halt all talks with the South unless its demands are met. “Unless the serious situation which led to the suspension of the north-south high-level talks is settled, it will never be easy to sit face to face again with the present regime of south Korea,” the statement said. KCNA, in its English-language service, deliberately uses
North Korea says it won’t hold talks with the ‘incompetent’ South unless differences are settled Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-05-17
Keywords: news, cnbc, companies, hold, korea, statement, talks, differences, incompetent, korean, united, present, south, thae, summit, settled, north, unless, wont


North Korea says it won't hold talks with the 'incompetent' South unless differences are settled

North Korea’s chief negotiator called the South Korean government “ignorant and incompetent” on Thursday, denounced U.S.-South Korean air combat drills and threatened to halt all talks with the South unless its demands are met.

The comments by Ri Son Gwon, chairman of North Korea’s Committee for the Peaceful Reunification of the country, were the latest in a string of inflammatory statements marking a drastic change in tone after months of easing tension with plans for denuclearization and a summit scheduled with the United States.

Ri criticized the South for participating in the drills, as well as for allowing “human scum” to speak at its National Assembly, the North’s KCNA news agency said in a statement.

“Unless the serious situation which led to the suspension of the north-south high-level talks is settled, it will never be easy to sit face to face again with the present regime of south Korea,” the statement said.

It did not elaborate.

KCNA, in its English-language service, deliberately uses lower-case “north” and “south” to show that it only recognizes one undivided Korea.

North Korea on Wednesday said it might not attend the June 12 summit between leader Kim Jong Un and U.S. President Donald Trump in Singapore if the United States continued to demand it unilaterally abandon its nuclear arsenal, which it has developed in defiance of U.N. Security Council resolutions to counter perceived U.S. hostility.

A South Korean presidential Blue House official said the South intends to more actively perform “the role of a mediator” between the United States and North Korea, but that goal has been cast into doubt by Ri’s comments.

“On this opportunity, the present south Korean authorities have been clearly proven to be an ignorant and incompetent group devoid of the elementary sense of the present situation,” Ri’s statement said.

The statement did not identify the “human scum” by name, but Thae Yong Ho, a former North Korean diplomat to Britain who defected to the South in 2016, held a press conference on Monday at the South Korean National Assembly for his publication of his memoir.

In his memoir, “Password from the Third Floor,” Thae describes North Korean leader Kim as “impatient, impulsive, and violent.”


Company: cnbc, Activity: cnbc, Date: 2018-05-17
Keywords: news, cnbc, companies, hold, korea, statement, talks, differences, incompetent, korean, united, present, south, thae, summit, settled, north, unless, wont


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