The capacity for price manipulation or price inflation presents a major challenge for the market to overcome, especially in the illiquid markets where live trading data are seldom made available to the general public. Like "ratings shopping," investors may be incentivized towards seeking the highest price, or most accomodating price provider, for their securities.
We will continue to maintain this growing database of situations in which parties disagree as to the prices used, or pricing practices employed.
- Dec. 2012: Deutsche hid up to $12bn losses, say staff
- Nov. 2012: KCAP fund, execs settle charges of overstating assets.
- May 2012: FINRA Fines Citigroup Global Markets $3.5 Million for Providing Inaccurate Performance Data Related to Subprime Securitizations: "Citigroup failed to supervise mortgage-backed securities pricing because it lacked procedures to verify the pricing of these securities and did not sufficiently document the steps taken to assess the reasonableness of traders' prices."
- May 2012: JPMorgan CIO Swaps Pricing Said To Differ From Bank
- May 2012: Ex-UBS Trader Sues After Firing for Mispricing Securities
- Feb. 2012: SEC Looking Into PE Firms’ Valuation of Assets
- Feb. 2012: Massachusetts Subpoenas Bank of America Over CLOs: examining whether Bank of America knowingly overvalued the assets in the portfolios in order to get the loans off its books
- Feb. 2012: Ex-Credit Suisse traders face US charges: Case relates to alleged CDO mispricing
- Jan. 2012: SEC Charges UBS Global Asset Management for Pricing Violations in Mutual Fund Portfolios)
- Nov. 2011: PwC and KPMG criticised over audits (of their clients' valuations of mortgage-related securities)
- Oct. 2011: Oversight board faults Deloitte audits
- July 2011: Polygon Faces Accusations It Used Tetragon For Cash
- April 2011: Report says Goldman duped clients on CDO prices
- April 2011: Wachovia cheated investors by inflating markups, SEC says
- March 2011: Buffett’s Berkshire Questioned on Accounting
- Feb. 2011: What Vikram Pandit Knew, and When He Knew It
- Feb. 2011: Mutual Funds' Muni-Debt Prices Are Questioned
- Oct. 2010: SEC Continues Crackdown on Overvaluations of Hedge Fund Assets
- Aug. 2010: Merrill's Risk Disclosure Dodges Are Unearthed
- May 2010: HK watchdog slaps fine on Merrill units
- April 2010: Legal Woes for Regions Financial
- Nov. 2009: Ambac Misstates Financials to Meet Minimums
- July 2009: Under Fire, NIR Group Switches Valuation Firms
- June 2009: Evergreen Pays Over $40 Million to Settle SEC Charges that it Overvalued Mortgage-Backed Investments
- April 2009: FHLB Executive Who Left Cites Securities Valuations
- Aug. 2008: "Large Number" of Banks Miss-Marked Assets, U.K. Regulator Says
- Aug. 2008: Financial Services Authority’s "Dear CEO: Valuation and Product Control" Letter
- July 2008: The Subprime Cleanup Intensifies: Did UBS Improperly Book Mortgage Prices? Several Probes Expand
- Feb. 2008: IN RE REGIONS MORGAN KEEGAN SECURITIES, DERIVATIVE and ERISA LITIGATION:"(g) The Fund's Board of Directors was not discharging its legal responsibilities with respect to “fair valuation” of the Fund's assets and had abdicated these responsibilities to the Fund's investment advisor, which had an inherent and undisclosed conflict of interest because its compensation was based on the amount at which which the Fund's assets were valued"
- Feb. 2008: AIG's bad accounting day
- Feb. 2008: OCC Supervisory Letter to Citi (identifies as one of two key concerns "CDO Valuation and Risk Management in the Capital Markets & Banking Group")
- Oct. 2007: Ex-RBC trader says colleagues mismarked bonds
- Oct. 2007: Pricing Tactics Of Hedge Funds Under Spotlight
- Aug. 2007: BNP Paribas halted withdrawals from three investment funds because it couldn't "fairly" value their holdings
- Aug. 2007: Goldman Disputes AIG Valuations and Office of Thrift Supervision Instructs AIG to Revisit Modeling Assumptions
- Jan. 2006: Deutsche suspends trader over £30 million 'cover-up’
- June 2002: An Analysis of Allied Capital:Questions of Valuation Technique
- Aug. 1994: Behind the Kidder Scandal: How Profit Was Created on Paper
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