CalPERS suing NYSE, specialists

[salin]

CalPERS suing NYSE, specialists

Pension fund alleges improper stock trades
By David Weidner, CBS.MarketWatch.com
Last Update: 3:44 PM ET Dec. 16, 2003

NEW YORK (CBS.MW) -- The California Public Employees Retirement System said Tuesday it would sue the New York Stock Exchange and its seven specialist firms, alleging improper trading.

In a 48-page suit expected to be filed in the U.S. District Court for the Southern District of New York, CalPERS said specialists at the exchange stepped in between traders and used price information to, among other things, "front-run" or trade ahead of investors.

The suit is not the first civil action against specialists for improper trading, but it is the first naming the NYSE for failing to police those trades.

"The NYSE looked the other way sometimes," CalPERS board member Sean Harrigan said. The lawsuit seeks unspecified damages, but Harrigan said the fund was seeking to recoup "millions."

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"Every dollar that was stolen from CalSTERS (the state teachers' pension fund) and CalPERS is a dollar that California has to make up," Angelides said. "This is a direct threat to pensions in the state and all over the country."

more: http://cbs.marketwatch.com/news/story.asp?guid=%7B982FFD36%2D77C7%2D43BC%2DAD69%2D713F4CE21096%7D&siteid=mktw

[denverbill]

1. What? Self-policing doesn't work?!?! Say it ain't so!!

If everything was just totally deregulated, life would be perfect, wouldn't it? Prices would miraculously go down, quality would improve, competition would be assured.

The NYSE can police itself. Large auditing firms can police themselves. Utilities can police themselves.

Let's all join hands and sing kumbaya!

[Just Me]

2. This makes me feel warm and fuzzy all over,...

,...if the Justice Department won't aggressively prosecute corporate corruption,...at least there are those willing to go the civil route. I hope they get the punishment that does most hurt them,...that pocket!!!

[Moderator]

3. Kick!

:dem:

[LeftCoast]

4. More frivolous lawsuits? /sarcasm

Nice to hear some good news! Go CALPERS! :)