Wall Street Reins In Hedge Funds’ Short Bets on Meme Stocks
Eliza Ronalds-Hannon and Jennifer Surane, 04 June 2021
Wall Street’s top brokers are quietly tightening their rules for who can bet against retail traders’ most-popular meme stocks.
Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc. and Jefferies Financial Group Inc. are among firms that have adjusted their risk controls at prime-brokerage operations, according to people familiar with the moves. The banks are trying to protect themselves against fallout from extreme surges and dips that have characterized trading in companies including AMC Entertainment Holdings Inc., MicroVision Inc. and GameStop Corp. Continue reading “Article: Wall Street Reins In Hedge Funds’ Short Bets on Meme Stocks”
Citi Must Face Former Trader’s Malicious-Prosecution Lawsuit
Bob Van Voris, Jenny Surane and Michael Leonard, Bloomberg News, 12 March 2021
(Bloomberg) — One of three British traders acquitted of using an online chatroom to fix prices in the foreign exchange market can go forward with a lawsuit claiming that Citigroup Inc. “fabricated” a baseless case against him, a judge ruled.
U.S. District Judge Victor Marrero on Thursday rejected the bank’s attempt to have the case dismissed. Former Citigroup trader Rohan Ramchandani sued in 2019 claiming damages of $112 million.
Read More: Citigroup Framed Me, Acquitted Forex Trader Claims in Suit
The ruling clears the way for Ramchandani, a former London-based trader, to move forward with the malicious-prosecution suit, which he brought in New York against a group of the bank’s affiliates after his acquittal.
“Mr. Ramchandani’s claims of malicious prosecution are without merit and we will contest them vigorously,” Danielle Romero-Apsilos, a spokeswoman for the bank, said in an emailed statement.
A Manhattan federal jury in October 2018 found Ramchandani and two other British traders working for other banks — a group dubbed “the Cartel” — not guilty of conspiring through online chatrooms to manipulate the $5.1-trillion-a-day foreign exchange market.
Citigroup, JPMorgan Chase & Co., Barclays Plc and Royal Bank of Scotland Group Plc pleaded guilty to currency manipulation in 2015 as part of a $5.8 billion settlement with the DOJ.
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