Week in Review: A Crippling Blow Follows Outsize Profits

Week in Review: A Crippling Blow Follows Outsize Profits

Fund indicted; called magnet for cheating. | Wall Street’s exposure to hacking laid bare. | Trader and S.E.C. lawyer spar over e-mail. | A legal bane of Wall Street switches sides.

A look back on our reporting of the past week’s highs and lows in finance.

Activision to Buy Back $ 8.2 Billion in Shares | The world’s biggest video game publisher reached a deal to separate from Vivendi and become an independent company. DealBook »

Dell Founder Raises Takeover Bid, With Conditions | Michael S. Dell offered a small increase in price in exchange for a more certain shareholder vote. DealBook »

Deal Professor: Yahoo’s Share Buyback Is Legal, but Timing Is Suspect | Daniel Loeb’s exit from Yahoo raises the question of whether he was out to create true value or merely stir the pot. DealBook »

  • After Victories at Yahoo, Investor Will Leave Board | Yahoo has agreed to buy 40 million shares of its stock from Mr. Loeb’s firm. DealBook »

SAC Is Arraigned on a Raft of Criminal Charges | The hedge fund is the first large American company to face an indictment in more than a decade. DealBook »

  • Fund Indicted; Called Magnet for Cheating | Federal authorities, under fire for handling Wall Street with kid gloves, have delivered a crippling blow to one of its most successful firms, SAC Capital Advisors, whose outsize trading profits have drawn government scrutiny for more than a decade. DealBook »
  • SAC Case Threatens a Wall St. Cash Cow | Brokers said that SAC Capital was one of the largest commission generators for Wall Street. DealBook »
  • A Relentless Prosecutor’s Crowning Case | A victory in the case could propel Preet Bharara onto a bigger platform. DealBook »
  • In Case Against Hedge Fund, a Show of Force | When Steven A. Cohen’s lawyers arrived for a meeting this spring at the United States attorney’s offices, the room was packed with federal investigators — a signal that the government was no longer interested in just monetary settlements. DealBook »
  • News Analysis: For SAC, Indictment May Imperil Its Survival | The extent to which an indictment or a conviction can be damaging depends on details of the nature of the business and of a company’s customers. DealBook »
  • Criminal Indictment Is Expected for SAC | The Times reported on Tuesday that the government was expected to announce the indictment. DealBook »
  • DealBook Column: A Towering Fine for Naught, as the S.E.C. Tracks Cohen | Andrew Ross Sorkin asks: Why did Mr. Cohen pay more than half a billion dollars to settle the S.E.C. case? DealBook »
  • Case Reveals Cohen’s Links to Dubious Actions at SAC | The S.E.C. is using phone records and e-mails to depict SAC Capital’s chief as deeply engaged in his employees’ questionable behavior. DealBook »

Wall Street’s Exposure to Hacking Laid Bare | Recent indictments of hackers raise concerns that programmers are developing tools that could wreak havoc on the broader financial system. DealBook »

  • U.S. Says Ring Stole 160 Million Credit Card Numbers | The scheme ran from 2005 until last year and caused hundreds of millions of dollars in losses, prosecutors said. DealBook »

Defense Tries to Show Sympathetic Side of Ex-Trader | Fabrice Tourre’s legal team worked to rehabilitate his image. DealBook »

  • Trader and S.E.C. Lawyer Spar Over E-Mail | The government waited more than three years to have a chance to shred the credibility of the former Goldman Sachs trader in front of a jury. DealBook »
  • Witness in Tourre Case Describes Difficulty in Knowing Deal’s Friends From Foes | Laura Schwartz said she believed a hedge fund supported a transaction her firm invested in, but the fund actually bet against it. DealBook »
  • Tourre Lawyers Focus on Reliability of Federal Witness | Some of Gail Kreitman’s testimony seemed to directly contradict what the former Goldman employee said during earlier testimony. DealBook »

A Legal Bane of Wall St. Switches Sides | Robert S. Khuzami is following the quintessential Washington script: an influential government insider becoming a paid advocate for industries he once policed. DealBook »

New Powers Invoked to Curb a High-Speed Trading Feint | Three regulatory agencies set penalties on Panther Energy and its owner over a practice known as “spoofing” meant to manipulate markets. DealBook »

‘Criminal’ Fiona Apple’s 1997 hit about cheating is dedicated to all the traders and politicians who got caught this week. | YouTube »



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