Billionaire Carl Icahn is in trouble with U.S. regulators

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Carl Icahn is in trouble with the SEC.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:05The trading day begins with the S&P 500 and the Nasdaq looking for their next move following

00:10eight days of gains.

00:12Stocks are not the only thing on the up and up.

00:14Gold prices are at a record high, trading above $2,500 an ounce.

00:18And for the first time in history, a gold bar, which typically weighs about 400 ounces,

00:24is worth $1 million.

00:28And speaking of millions, veteran Wall Street tycoon Carl Icahn has agreed to pay $1.5

00:33million to settle charges that he used his company's stock as collateral for billions

00:39of dollars in personal loans without telling investors.

00:43He and his company, Icahn Enterprises, also agreed to pay half a million dollars in civil

00:48penalties.

00:49According to the Securities and Exchange Commission, the misdeeds, which go all the way back to

00:542005, are tied to the fact that he did not reveal what he was doing to all his shareholders.

01:02The federal securities laws imposed independent disclosure obligations on both Icahn and IEP.

01:09These disclosures would have revealed that Icahn pledged over half of IEP's outstanding

01:15shares at any given time.

01:17Due to both disclosure failures, existing and prospective investors were deprived of

01:22required information.

01:24If those billions of dollars in personal loans would have gone bad, then lenders would

01:28have confiscated Icahn Enterprises' shares, which would have forced a sale that would

01:33have hurt all company shareholders, all without shareholder knowledge.

01:37Icahn is a Wall Street legend and is said to have partially inspired the Gordon Gekko

01:43villain made famous in the 1987 hit movie, Wall Street.

01:48That'll do it for your daily briefing from the New York Stock Exchange.

01:51I'm Conway Gittens with the Street.

01:54Thanks for watching.

01:55See you next time.

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