Week in Review: Failed Trades in London Add to Inquiry in New York

BY ERIC OWLES

Criminal cases against two former JPMorgan Chase traders who worked in an office building near the Thames River spotlighted federal authorities’ inquiry of bank executives on Park Avenue.

And the Justice Department filed a lawsuit to block the creation of the world’s largest airline.

A look back on our reporting of the past week’s highs and lows in finance.

FRIDAY, AUG. 16

Judge Denies Icahn’s Effort to Move Dell Meeting | The ruling means that Michael S. Dell’s takeover bid will proceed to a shareholder vote as scheduled for Sept. 12. DealBook »

THURSDAY, AUG. 15

With New Bill, India Seeks to Overhaul a Corporate World Rife With Fraud | It will replace 57-year-old corporate legislation that critics say had failed to keep up with changes in business practices. DealBook »

WEDNESDAY, AUG. 14

United States Attorney Preet Bharara, right, announcing the charges against two former JPMorgan Chase traders on Wednesday.
Michael Appleton for The New York TimesUnited States Attorney Preet Bharara, right, announcing the charges against two former JPMorgan Chase traders on Wednesday.

Charges Against 2 Traders Fault JPMorgan for Lack of Oversight | The future of the investigation hinges on whether Javier Martin-Artajo and Julien Grout decide to cooperate. DealBook »

News Analysis: Unreliable Guesswork in Valuing Murky Trades | A cadre of JPMorgan employees embarked on a foolhardy quest to trade their way out of trouble. DealBook »

Steinway's showroom on West 57th Street. Paulson & Company, a hedge fund, agreed to buy Steinway for $512 million.
Fred R. Conrad/The New York TimesSteinway’s showroom on West 57th Street. Paulson & Company, a hedge fund, agreed to buy Steinway for $512 million.

To His Collection of Steinways, Hedge Fund Titan Adds Their Maker |John A. Paulson said that the calculation was rather simple — he loves the pianos.DealBook »

Once a Symbol of Brazil’s Might, Billionaire Sells Controlling Stake in a Company | Eike Batista has seen his own net worth, once about $30 billion, tumble to well under $1 billion. DealBook »

América Móvil’s $9.5 Billion Offer for KPN Under Scrutiny | Carlos Slim Helú’s European expansion plans may be running into trouble from a a Dutch foundation with the power to block his bid for the Dutch cellphone operator.DealBook »

TUESDAY, AUG. 13

The Justice Department opposes the merger of American Airlines with US Airways, fearing higher fees for fliers with diminished competition.   
Larry Downing/ReutersThe Justice Department opposes the merger of American Airlines with US Airways, fearing higher fees for fliers with diminished competition.

U.S., Filing Suit, Moves to Block Airline Merger | The move surprised airline industry officials, but it underscored a newly aggressive approach by the Justice Department’s antitrust division. DealBook »

William A. Ackman resigned this week from the board of J. C. Penney after an unsuccessful turnaround attempt.
Pawel Dwulit/The Canadian Press, via Associated PressWilliam A. Ackman resigned this week from the board of J. C. Penney after an unsuccessful turnaround attempt.

The Loudest Voice Fails | William A. Ackman’s embarrassing retreat from J. C. Penney’s board may highlight not only the flaws of the hedge fund titan’s approach and his force of personality but also the limits of what shareholder activists can achieve. DealBook »

Questions Arise About Herbalife Product Safety | Herbalife is at the heart of a Wall Street brawl. Now the company’s handling of a product safety issue in 2011 is drawing scrutiny. DealBook »

U.S. Faces Obstacle in Bid to Arrest 2 in Big Trading Loss at JPMorgan | One of the employees remains on vacation while the other has returned to his native France, complicating plans to extradite them. DealBook »

New York and U.S. Open Investigations Into Bitcoin | Lawmakers are worried that upstart virtual currencies can be used to evade taxes, defraud investors and assist trade in illegal products like drugs and pornography.DealBook »

Deal Professor: Thriving Financial Product, Despite a Record of Failure| Silver Eagle’s I.P.O. is the largest in the past seven years for a SPAC, but Steven M. Davidoff says the outcome is not so clear for its investors. DealBook »

MONDAY, AUG. 12

James Best Jr./The New York Times

Blackberry Sends a Message | The abrupt decline of BlackBerry illustrates how consumers and investors demand almost instant change these days, especially from tech companies. And the window for redemption for a tech company that misses a step can be tiny indeed. DealBook »

SAC Closes a Trade Unit as It Starts to Retrench| Some SAC employees are already covertly conducting job interviews in hotel rooms and private homes to avoid being spotted on rivals’ trading floors.DealBook »

Wendy Fillmore says that the market value of her Las Vegas home is about half the combined value of her two mortgages.
Isaac Brekken for The New York Times
Wendy Fillmore says that the market value of her Las Vegas home is about half the combined value of her two mortgages.

In One Bundle of Mortgages, the Subprime Crisis Reverberates | AGoldman Sachs bond with a complex name — GSAMP Trust 2007 NC1 — has wide-ranging impact, on the bankers who sold the deal, the struggling homeowners, and taxpayers who helped pick up the bill. DealBook »

DealBook Column: Wall St. Debates Who Should Pay Legal Bills | “In this era, positions on Wall Street are fraught with all sorts of perils,” a partner at Marino, Tortorella & Boyle tells Andrew Ross Sorkin. DealBook »

Suit Accuses Online Lender of Violating New York Rate Caps | Western Sky Financial offers short-term loans at interest rates of more than 300 percent. Its affiliates claim connections to American Indian tribes tribes — ties that the lenders have argued immunize them from federal and state laws. DealBook »

SUNDAY, AUG. 11

In April 2002, Attorney General Eliot Spitzer of New York discussed court-ordered changes at Merrill Lynch next to a display of analyst comments.
Kathy Willens/Associated PressIn April 2002, Attorney General Eliot Spitzer of New York discussed court-ordered changes at Merrill Lynch next to a display of analyst comments.

With I.P.O.’s on the Rise, Analysts Get New Scrutiny | Companies routinely interview analysts when selecting bankers to underwrite their I.P.O.’s. During these meetings, the analysts say, they increasingly feel pressure to say the right things. DealBook »

JPMorgan Chase's New York headquarters. Trading at its London offices is still facing scrutiny.
Lucas Jackson/ReutersJPMorgan Chase’s New York headquarters. Trading at its London offices is still facing scrutiny.

Prosecutors and F.B.I. Examine JPMorgan | The investigation could yield a fine and a reprimand of the bank. The action would come in addition to civil charges from the Securities and Exchange CommissionDealBook »

WEEK IN VERSE

‘Learn to Fly’ | In a merger that was unopposed by the Justice Department, the Foo Fighters and Tenacious D parodied the movie “Airplane!” YouTube »

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