Specialist’s Rates A Little Too Special

A New York Stock Exchange investigation into stock loan misconduct has resulted in Van Der Moolen Specialists agreeing to pay a $3.5 million fine. The firm’s transgression? Certain employees allegedly borrowed securities at rates “significantly below” market and then loaned them at much higher rates. The firm also paid out $2.65 million in unjustified finder’s fees to 29 friends and family members. The admission of wrongdoing by VdM shouldn’t have much impact on the firm’s business--it closed the naughty unit last year anyway.
Van Der Moolen Settles Probe [Crain’s]

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