New York state Attorney General Eliot Spitzer's office has dropped a case involving criminal charges which alleged that former CIBC executive Paul Flynn was involved in mutual fund trading abuses. The move comes hot on the heels of Spitzer's decision not to re-try ex-Bank of America man Ted Sihpol on similar charges. Some now doubt whether the US fund management industry should have been so quick to shell out $3.1bn to settle Spitzer's claims about market abuse. The firms who paid up might have been better off taking their chances in court.
Deutsche Bank has off-loaded 25 million shares in DaimlerChrysler, a holding it has held for decades, and booked a $355m pre-tax profit to boot. The German bank has liquidated around $16bn in assets over the last 3 years, and is freeing up capital for the benefit of its fast-growing investment banking business. Deutsche still retains a 4.4% stake in DaimlerChrysler.
Interdealer broker Icap posted fiscal first half profits Tuesday, up 18% to £98.2m. Revenues from electronic broking rose 24%, with operating profit from this business up 65% to £15.5m. Profits from voice broking activities were up 12% to £71.6m.
According to a recent filing, almost 15% of market data and clearing revenues over at commodities trading exchange Nymex was in some way related to Refco. Clearly this may have an impact on future profitability. In the meantime, profits for the 9 months to end of September rose 67% to $253m. So it can't be all bad.
Finally, The National Association of Securities Dealers (NASD) has fined State Street Global Markets $1.4m, for failing to report billions of dollars of bond trades. The unit of State Street Corp. failed to report 89% of bond trades it processed between July 2003 and December 2004 through NASD's trade-reporting system. 79% of the unit's self-cleared municipal-bond transactions to the Municipal Securities Rulemaking Board also went unreported during the same period.