Financial Firm Fined for Misleading Investors on Magnetar Bets

by Cora Currier
ProPublica, Feb. 28, 2012, 5:57 p.m

State investigators in Massachusetts slapped the investment c

ompany State Street Global Advisors yesterday with a $5 million fine for failing to tell

investors about the role of the hedge fund Magnetar in a risky collateralized debt obligation that collapsed in the housing market crisis.

In 2006, State Street and Deutsche Bank put together a $1.56 billion CDO deal, called Carina CDO Ltd. As we reported with This American Life and NPR, Magnetar was involved in the creation of at least $40 billion of CDOs, including Carina, while simultaneously taking positions that would allow it to profit if the CDOs failed. [Continue reading…]

Cholesterol-lowering drugs — statins — may increase risk of diabetes and cognitive problems, says FDA

Some cholesterol-lowering drugs, or statins, received updated labels today from the U.S. Food and Drug Administration.

According to an FDA press release,

important safety changes to the labeling for some widely used cholesterol-lowering drugs known as statins are being announced today.

These products, when used with diet and exercise, help to lower a person’s “bad” cholesterol (low-density lipoprotein cholesterol). The products include: Lipitor (atorvastatin), Lescol (fluvastatin), Mevacor (lovastatin), Altoprev (lovastatin extended-release), Livalo (pitavastatin), Pravachol (pravastatin), Crestor (rosuvastatin), and Zocor (simvastatin). Combination products include: Advicor (lovastatin/niacin extended-release), Simcor (simvastatin/niacin extended-release), and Vytorin (simvastatin/ezetimibe). [Continue reading…]