SEC Further Delays Ruling on Title II of JOBS Act
The SEC Chairman Mary Schapiro has informed members of Congress that the SEC will delay implementing rules that would give effect to Title II of the JOBS Act, which will remove the general solicitiation ban of securities offered under Rule 506. The Wall Street Journal is reporting that the coming changes to Rule 506, which were thought to be taking effect as early as August 22nd, will not take effect until this fall at the earliest. Rather than implementing interim rules, the SEC will submit proposed rules and solicit comments on the proposed rules. Representative Patrick McHenry wrote a letter to Chairman Schapiro relating his frustration that implementation of the rules is being delayed.
Hedge Fund Manager Found Guilty of Insider Trading
Doug Whitman, founder of Whitman capital, faces a possible maximum sentence of 50 years in prison after being convicted of insider trading. Mr. Whitman took the stand in his own defense, stating that he did not think his sources had any secret information, and that instead his trading was based on legitimate stock research. The SEC’s complaint alleged that Mr. Whitman gained $980,000 in “ill-gotten profits” as a result of the insider trading of stocks including Google and Polycom, Inc.
Mergers and Acquisitions
Carlyle Group Continues Spree of Acquisitions
Carlyle Group LP purchased Getty Images for $3.3 billion from Hellman & Friedman LLC, in a move to “take Getty images to the next stage of product innovation and global growth,” according to Carlyle Managing Director Eliot Merrill. The Carlyle Group will acquire an interest in Getty Images just over 50%. The acquisition of Getty Images follows closely on the heels of acquisitions of TCW, an investment advisory group, an interest in the Philadelphia refinery Sunoco, and an interest in Genesee & Wyoming, a regional freight railway company.
Apple’s Phones Outsell All Microsoft Products Combined
Apple’s iPhone sales were $22.7 billion last quarter; Microsoft’s total revenues for the quarter were $17.4 billion. And these sales figures were for a quarter in which Apple’s phone sales were projected to be down, as many consumers are believed to be waiting to purchase the iPhone 5, which is expected to be Apple’s best selling phone by a considerable margin.