The Federal Reserve can avoid unprecedented losses by never selling mortgage-backed securities from its record $3.84 trillion balance sheet, according to updated estimates by Fed economists in Washington.
The U.S. Supreme Court debated the reach of the federal securities laws, questioning whether investors can sue law firms and outside companies for their alleged roles in R. Allen Stanford’s $7 billion Ponzi scheme.
A wrap-up of regulatory and enforcement actions taken around the trading world, including the SEC obtaining a $13.9 million penalty against Rajat Gupta.
Rajat Gupta, the former Goldman Sachs Group Inc. director who was found guilty of passing confidential tips to jailed billionaire hedge-fund manager Raj Rajaratnam, was ordered to pay $13.9 million in a related U.S. regulatory lawsuit.
