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The Morning Risk Report: Legg Mason to Pay SEC More Than $34 Million to Settle Libya Bribery
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Legg Mason’s headquarters in Baltimore PHOTO: BLOOMBERG NEWS
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Good Morning. Legg Mason Inc. will pay more than $34 million to the Securities and Exchange Commission to settle an investigation into the role one of its former subsidiaries played in bribing officials in Libya, the SEC said Monday.
Part of the penalty. The settlement comes after the Baltimore-based investment-management firm agreed to pay $64.2 million to settle a Justice Department investigation into the matter. Because of the settlement with the SEC, Legg Mason’s payments to regulators will total about $71 million.
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Mason looks ahead. Legg Mason said it was was pleased to conclude the matter with the SEC. When it settled with the Justice Department in June, the firm admitted its subsidiary’s role in the bribes, according to a department statement from the time.
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Transamerica’s Entities to Pay $97.6 Million to Misled Retail Investors |
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Transamerica Corp. has agreed to pay $97.6 million following a settlement with the SEC over charges that four of its entities misled retail investors.
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The SEC said Monday that Aegon USA Investment Management LLC, along with Transamerica Asset Management Inc.,Transamerica Financial Advisors Inc. and Transamerica Capital Inc., claimed that investment decisions would be based on Aegon’s quantitative models.
The models, however, were developed solely by an inexperienced junior analyst, contained numerous errors, and didn’t work as promised, the SEC said. When the entities found out about the errors, they stopped using the models without telling their investors, who had put billions of dollars into mutual funds and other strategies using the models.
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Iran Struggles to Rein In Illicit Trade in Dollars |
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The black market for U.S. dollars has got a major boost in Iran, as the regime in Tehran faces increasing pressure from tightening U.S. sanctions and a faltering domestic economy.
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A Casino supermarket in Paris. PHOTO: CHRISTIAN HARTMANN/REUTERS
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The Risk of Making a Simple Business Complex |
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French supermarket chain Groupe Casino got into trouble with investors three years ago over its tangled ownership of stores in emerging markets, among other problems. Now it is under scrutiny again for the same issue, this time in France.
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How a Banker’s Message to a Client Spelled Trouble for UBS |
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A UBS Group AG banker working on a large Hong Kong initial public offering last year disclosed the identity of an investor that sold shares shortly after the listing, a breach of client confidentiality, The Wall Street Journal reports.
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The incident triggered an internal investigation and the suspension of a senior employee, according to people familiar with the matter.
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Tesla’s Operational Challenges Back in Spotlight |
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Now that CEO Elon Musk has squashed efforts to take Tesla Inc. private, he must focus on meeting his goal to increase Model 3 output to 6,000 vehicles a week by late August.
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‘We must reflect the America of today,’ says James Brett, who took over as CEO of J.Crew last year. PHOTO: BRYAN ANSELM FOR THE WALL STREET JOURNAL
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New J.Crew CEO’s Strategy: Lower Prices, More Sizes |
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When James Brett took over as chief executive of J.Crew Group Inc., Facebook was littered with complaints from angry shoppers. He took that as a sign the struggling apparel brand still had a chance.
“If this many people care enough to say these things—even though they’re harsh, negative things—it’s still good for us,” he said. “We’re still in the game.”
Here's how the 49-year-old retail veteran plans to turn around the brand.
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Readers can subscribe to The Morning Risk Report here: http://on.wsj.com/MorningRiskReportSignup. Follow us on Twitter at @WSJRisk.
Follow the WSJ Risk & Compliance Team on Twitter: @WSJRisk, @srubenfeld and @LikelyMara.
Send comments to the Risk & Compliance editor, Jack Hagel, at jack.hagel@wsj.com.
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