SEC

CNN iReport's Citizen Journalist Under Investigation by SEC

Does CNN have the right model for user generated news with iReport? CNN believes so but some people who took a loss on their shares in Apple on October 3 might disagree. According to Bloomberg news:

An 18-year-old posted the fake Internet report that Apple Inc. Chief Executive Officer Steve Jobs had suffered a heart attack, and investigators haven't found evidence the teenager tried to profit from driving down the stock, two people with knowledge of the matter said.

So the iReporter didn't profit but what about others?

The bogus report cut Apple's market value by at least $4.8 billion in the first hour of Nasdaq Stock Market trading before a spokesman for the Cupertino, California-based maker of iPods and Macintosh computers said the report wasn't true. The shares recovered a bit, closing down 3 percent.

CNN's response? 

Paulson heads bailout: What is wrong with this financial picture?

[Update: with minor edits towards clarity - luaptifer]

This is incredible.

The Day the S.E.C. Changed the Game steps backward to the date, April 28, 2004, on which SEC gave the OK for the five banks that have precipitated the current spiral of the global financial crisis to begin their own financial risk monitoring programs rather than continuing to use the objective models then restraining all other banks from 'overdoing it'.

The Filthy Rich: UBS AG and Lichtenstein LGT Group Help U.S. Clients Hide Money

From Bloomberg:

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UBS, LGT Helped Hide Assets, Evade Taxes, Senate Says (Update1)
By David Voreacos and Carlyn Kolker

July 17 (Bloomberg) -- UBS AG and Liechtenstein bank LGT Group aided rich U.S. clients who wanted to disguise ownership of accounts and evade taxes on hidden assets, a Senate subcommittee said.

UBS, the world's largest wealth manager, hid as much as $17.9 billion for 19,000 Americans who didn't declare assets to the Internal Revenue Service, the Senate Permanent Subcommittee on Investigations said in a report released in Washington late yesterday. LGT, owned by Liechtenstein's ruling family, fostered a ``culture of secrecy and deception'' while assigning code names to U.S. clients, the panel said.

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Isn't it nice that banks will bend over backwards for the money of rich Americans?

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Senate investigators got help from former UBS banker Bradley Birkenfeld, 43, who pleaded guilty June 19 to helping California billionaire Igor Olenicoff evade taxes. Birkenfeld said he conspired with Liechtenstein banker Mario Staggl, 43, who was indicted with him on April 10.

Staggl is a fugitive.

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Anyone with information about the whereabouts of Mr. Staggl should contact the Justice Department, post-haste -- it appears that they are actually taking this case seriously, as opposed to domestic ones that are looking into multiple instances of malfeasance and criminal conduct by the Bush Administration, and therefore might actually use the information wisely.

Check out the complete article on Bloomberg (linked at the top of the story). It's an eye-opener.