US SUPREME COURT WILL HEAR CASE ON INSIDER TRADING!!!!!

us-supreme-court

By: Economic & Finance Report

 The US Supreme Court in the first week of October, will be hearing an important case on insider trading. The case is important because it will limit prosecutors setting out on litigation against hedge fund managers and their hedge funds.

The case that the justices will hear is one of Bassam Salman, an Illinois investor who  accumulated $1.2 million dollars from inside trading, because his brother in law had insider trading information on Citigroup Inc clients.  Salmon’s brother worked for the Citigroup as well.

In over 20 years the Supreme Court has never once decided an insider trading case, most times cases were handled in lower courts and were defined by the SEC to pursue litigation. This case is one of its kind for the financial regulatory body.

It is noted that the outcome and decision of this particular case could have an enormous effect in the investment and trading community; and better be sure the financial watch dogs will be monitoring the outcome of this definitive case. -SB

PUERTO RICO BONDHOLDERS GET HUGE WIN IN COURT!!!!!!!

Puerto Rico Debt

By: Economic & Finance Report

Puerto Rico bondholders attained a huge legal win in Puerto Rico Supreme Court. The case  involved bondholders to follow an unconstitutional Puerto Rico restructuring law. The law would have required the bondholders  to accept restructuring law guidelines, as Puerto Rico figures ways to reduce their financial debt.

The bondholders in the case, Investment funds from OppenheimerFunds Inc, and Franklin Resources Inc, hold 1.5 billion dollars worth in Puerto Rico municipal bonds. A federal judge in San Juan, sided with the plaintiffs (bondholders) indicating that US Constitution and the federal bankruptcy law takes precedence over Puerto Rico’s restructuring law.

As of press time and of the current ruling of the case, the Puerto Rico government has stated that they were looking into the decision of the case and that they would be deciding what action to take on the ruling.

-SB