Politicians on Capitol Hill yesterday questioned whether America's main financial regulator has any future as the Securities and Exchange Commission (SEC) came under renewed attack for missing what is believed to be the world's biggest fraud, reports The Times.
The threat to the survival of the SEC came as it emerged that Bernard Madoff has violated the terms of his bail conditions by posting jewellery worth $1 million (£680,000) to family members and friends while under 24-hour house arrest.
The measure constitutes a breach because it is perceived as a possible attempt to hide his remaining assets from liquidators.
THE INVESTOR WHO HELPED John Paulson to make $15 billion from predicting the US sub-prime mortgage crisis has left Paulson & Co, the hedge fund manager, to set up his own fund, reports The Times.
Paolo Pellegrini was the right-hand man to Mr Paulson when the founder of Paulson & Co, then a little-known fund manager, defied the rest of Wall Street and called the collapse of the US housing market in 2006.
As the co-manager of Paulson & Co's two Credit Opportunities funds, Mr Pellegrini is credited with engineering complex trades in credit default swaps to take advantage of his boss's hunch that investors had overvalued mortgage-backed securities.
Their gamble netted the funds $15 billion in 2007 when the US housing market began to collapse, giving Mr Paulson a $3 billion to $4 billion personal payday.
UK COMPANIES FACE A 45PC DROP in earnings as the credit crisis chokes the economy this year, according to Citigroup. But most of the damage is already reflected in today's battered share prices, reports The Telegraph.
The US bank said Britain would the pay the price for letting consumer debt reach the highest levels of the G8 bloc while also running a large fiscal deficit at the top of the cycle. "This is not a good place to start," said the bank's equity team.
House prices are likely to fall a further 15pc, with a high risk of an "overshoot" with traumatic effects on consumer psychology.
Contact: Scott Sinclair, News Editor, 020 7484 9791 - [email protected]IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till