RBC

RBC Accused By CFTC Of Largest Trading Scheme To Date

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Just earlier today, the Royal Bank of Canada (ticker RY) found out they have a serious situation on their hands involving some of their trading practices.  It appears the Commodity Futures Trading Commission (CFTC) is now claiming that RBC not only intentionally made a large number of fictitious trades to reap benefits from tax arbitrage, but they covered their tracks for the past five years.  According to the NYTimes: “In a civil lawsuit filed in federal court in Manhattan, the trading commission accused the bank of creating “fictitious trades” between various arms of the firm. The trades, involving hundreds of … Read more

Falcone’s Harbinger Capital Hedge Fund Down 47% In 2011

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2011 was a brutal year for hedge funds, averaging a miserable -4% return for investors.  Billionaire Phil Falcone was no exception as his huge bet on LightSquared dragged performance down to a whopping -47% on the year. Most of the decline in the Harbinger Capital Partners Offshore Fund I came from Falcone’s investment in LightSquared Inc., which plans to offer high-speed data service to as many as 260 million people. The Reston, Virginia-based company is awaiting final clearance from the Federal Communications Commission as regulators weigh test results that show the service’s signals disrupt global-positional system equipment used by cars, … Read more