The SEC voted to allow five major investment banks (Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, and Bear Stearns) to use alternative net capital rules, effectively eliminating previous debt-to-net capital ratio limits. This voluntary program allowed banks to use their own internal …
Securities and Exchange CommissionChristopher CoxWilliam DonaldsonGoldman SachsMorgan Stanley+3 moreregulatory-capturefinancial-crisissecleveragewall-street+1 more
The SEC establishes the Consolidated Supervised Entities (CSE) program under Chair William Donaldson, eliminating the 12-to-1 leverage limit that had constrained broker-dealers and investment banks since 1975. The program allows firms with over $15 billion in assets—Bear Stearns, Lehman Brothers, …
SECWilliam DonaldsonBear StearnsLehman BrothersMerrill Lynch+3 moresec-deregulationinvestment-bank-leveragecse-programsystemic-riskself-regulation+1 more
Jeffrey Epstein abruptly leaves Bear Stearns amid an SEC investigation into insider trading related to the Edgar Bronfman/Seagram deal. This marks the beginning of Epstein’s transition from legitimate finance to his mysterious career as an unregistered investment advisor with undisclosed …
Jeffrey EpsteinBear StearnsSEC (Securities and Exchange Commission)Edgar BronfmanSeagram Companyepstein-intelligencefinancial-misconductsec-investigationbear-stearnsinsider-trading+1 more