Sunday, March 18, 2012

The FSA said Andrew Osborne disclosed inside information about the punch Taverns cash of 375 million pounds required to cover the fund manager David Einhorn of Greenlight Capital

A former Merrill Lynch broker has been fined £ 350,000 by the Financial Services Authority to engage in "market abuse" in the face of a fundraiser for Punch Taverns.

Andrew Osborne, who was CEO of brokerage firm Merrill Lynch International and described by the FSA as "guardian of trust inside information" means information disclosed ahead of the Call 375 million pounds in cash by a group of bars in June 2009.

The fine against Osborne was EUR 7.2 million in hedge funds, David Einhorn, whose famous short sales helped down Lehman Brothers, and signature. Einhorn Greenlight Capital, the hedge fund said that the FSA had been informed by the fundraising before Osborne released.

Osborne described the fine "disproportionate". He said the decision of the FSA was not a "fair result" and that the regulator has acknowledged that its actions were not deliberate.

The FSA said that Osborne knew June 9 that Greenlight had refused formally "the wall of the Cross" - a term that describes the process of enabling people to receive private information in a formal setting, who then do not trade. However, he referred to fund raising in a telephone conversation with management and the strike Einhorn.

a transcript of the call by the FSA, said the time Einhorn told the size of the fundraising. At the time of the fundraiser has been the target of around £ 350m, almost the same value as the company was then worth £ 400m.

Einhorn said, "Wow, wow that would be terribly terrible from my point of view.". Moments later, the executive director of joke excuses. "Dave - Dave - David, but we are sorry "


"By disclosing inside information, Osborne has conducted serious violations of the market. Their actions undermined order and market integrity and the maximum penalty reflects the seriousness of the violation. There should be no doubt about the commitment FSA to crack, which authorized persons do not fulfill their responsibilities. "

The FSA accepts Osborne shares were not deliberate, but concluded that "there was a serious case of market abuse that undermines market integrity and confidence market damaged. "
Osborne, who has not taken the matter to a court that actually allows an appeal against the FSA said the fine was too high. "Although I have decided not to proceed against the FSA to draw a line under this long, arduous and time, do not think the decision of the FSA is a just result." He argued that nothing had happened inside information.

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