The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:SEC Questions Family Ties at Fido Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, December 13, 2004

SEC Questions Family Ties at Fido

by: Sean Hanna, Editor in Chief

SEC investigators leading the probe into Fidelity's trading desk are now questioning trades sent to the brothers of one Fido employee the Boston Globe reported Sunday. The paper based its article on attorneys and others involved in the case. If true, the report confirms the wisdom of the "camel's nose under the tent" saw cited by lawyers.

The paper reports the man who handles Fidelity trades at Banc of America Securities, Peter J. Donovan, is the brother of Fidelity trader David K. Donovan. At issue is whether David (the elder brother at 42) sent trades directly to Peter (37). If so, regulators are also wondering if Fidelity shareholders received the best pricing on those trades.

There is nothing improper with doing business with a relative as long as the fund shareholders still receive a fair deal.

The latest twist on the trading investigation came after the SEC subpoenaed Fidelity records as a part of a probe into whether an employee of Jefferies Company gave too valuable gifts to Fidelity traders.

A Fidelity spokesperson told the paper that Fidelity's trading costs are closely watched and are among the lowest in the business.

"If something came into play that would detract from the best execution," spokesperson Anne Crowley told the paper. She added that high-cost trading "would be identified very quickly. And if so, we would be very quick to find out why," and that a "good part" of compensation for traders is based on their efficiency.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use