Segantii Capital Management Insider Trading Trial Begins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy BAC?
Source: Newsfilter
- Trial Commencement: Segantii Capital Management, along with founder Simon Sadler and former trader Daniel La Rocca, pleaded not guilty at the start of their insider trading trial in Hong Kong, marking a significant moment for one of Asia's largest hedge funds and potentially impacting the region's crackdown on insider trading.
- Charges Overview: Prosecutors allege that the defendants sold 190 million shares of Esprit Holdings ahead of a planned block trade in June 2017 after receiving insider information, with a maximum prison sentence of seven years looming if convicted, highlighting the severe legal repercussions of insider trading.
- Market Impact: The case has resulted in the shutdown of Segantii's $5 billion fund, reflecting a zero-tolerance stance towards insider trading in the market, which may compel other hedge funds to enhance their compliance measures and operational strategies.
- Witness Testimony: Former Bank of America banker Tony Psarianos is scheduled to testify on May 11 and 12, providing crucial evidence regarding the leak of trading information, which could significantly increase legal pressure on the defendants and influence the trial's outcome.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 53.120
Low
55.00
Averages
61.64
High
71.00
Current: 53.120
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tepid Bank Stock Response: Following the Fed's decision, shares of JPMorgan Chase and Bank of America saw slight increases but subsequently dropped, with both down 3% to 4% by May 5, reflecting market concerns over economic outlook.
- Loan Activity and Rates: While higher rates typically benefit banks by allowing them to charge more for loans, they may also suppress loan activity; however, both JPMorgan Chase and Bank of America reported strong loan activity in Q1, achieving higher net interest income despite lower rates compared to last year.
- Active M&A Environment: The first quarter experienced a surge in mergers and acquisitions due to lower interest rates, and while the Fed's decision to maintain rates is unlikely to hinder this activity, both JPMorgan Chase and Bank of America, as top investment banks, benefited from this trend.
See More
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- New Fan Experience: The collaboration will also support the 'My First Game' experience, ensuring that more families have the opportunity to attend matches at Providence Park for the first time, enhancing fan engagement and sense of belonging while providing the club with opportunities to attract new audiences.
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