Friday, June 12, 2009

Just How Many Regulations Is Goldman Exempt?

Yet another indication that regulations that pertain to you and me, don't necessarily pertain to some others.

In the prospectus filed on May 19, 2009 for Regions Financial Corporation which solicited an offer to exchange 6.625% TRUPS into 138 million shares of common, dealer managers were everyone's favorite TARP recipients Goldman Sachs and JP Morgan.

Presumably, the language on the front cover should be valid at least until the expiration of the exchange offer which is June 17, 2009. The key section is the following:
None of us, the trustee, the Dealer Managers, the Exchange Agent, the Information Agent (each as defined herein) nor any other person makes any recommendation as to whether you should tender your shares of Trust Preferred Securities. You must make your own decision after reading this document and the documents incorporated by reference herein and consulting with your advisors.
So, maybe Goldman Sachs can clarify just which exemption it was using yesterday to issue an Upgrade of Regions Financial to a Buy, when the company should be in an implicit quiet period pending the duration of the exchange offer. Not surprisingly the stock screamed 12% higher yesterday on over 9% of the float turning over. While clarifying, can Goldman also please vouch that it's prop desk had no exposure to RF stock. Because if it did, that would really take the Larry Summers prize for stock manipulation moment of the year.

Is the SEC reading?

hat tip Troy Sphere: Related Content
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