Stopping what it called a “massive ongoing fraud,” the Securities and Exchange Commission on Tuesday accused Robert Allen Stanford, the chief of the Stanford Financial Group, of fraud in the sale of about $8 billion of high-yielding certificates of deposit held in the firm’s bank in Antigua. Also named in the suit were two other executives and some affiliates of the financial group.
In the complaint, filed in Federal District Court in Dallas, the S.E.C. accused Mr. Stanford and two associates — James M. Davis, a director and chief financial officer of Stanford Group and the Antigua-based bank affiliate, and Laura Pendergest-Holt, the chief investment officer of both organizations — with misrepresenting the safety and liquidity of the uninsured CDs.
Also, last night, someone forwarded me a link a breathless piece about “FX dislocation” or something of the other that sounded very ominous and foreboding, and I honestly had no idea what to make of it, so I won’t even bother linking it now because I think it is irresponsible to fearmonger in these uncertain times, but there sure seems to be a lot going on out there right now.
Also, the DOW is down a couple hundred today, and I have no idea what is driving that, although if I had to guess it would be the auto industry stuff.