Navnoor Kang, a former New York state pension fund executive accused of taking bribes from Wall Street salespeople, pleaded guilty to two counts of fraud. Prosecutors agreed not to pursue criminal charges stemming from their allegations that he accepted bribes in exchange for steering trading business to certain brokers, and later sought to obstruct federal investigations. The Wall Street Journal has the story.
The Journal also reported that SEC Chair Jay Clayton warned that initial coin offerings look suspiciously like securities, raising fears that the agency will more closely scrutinize the capital raising method.
BlackRock CEO Larry Fink says regulations on both sides of the Atlantic will bring another $2tn to $5tn to passive investing, Bloomberg reported.
Money is flowing out of active equity funds despite the improving performance of traditional investment managers, with another $4.5bn seeping out of U.S. funds over the past week to take the cumulative outflows to more than $150bn this year, according to The Financial Times.