LOS ANGELES (LALATE) – Sandeep Goyal, Spyridon Adondakis, and Jesse Tortora have been arrested for alleged insider trading. Sandeep Goyal (formerly with Dell Computers), Spyridon Adondakis (formerly of Level Global), and Jesse Tortora (f0rmerly of Diamondback Capital Management) were confirmed arrested in a news briefing to press moments ago.

Initial news reports anticipated four arrests would be announced today by prosecutors. But at a news conference midday today January 18, 2012, prosecutors indicated that seven persons have been arrested this week. Confirming a previous report on LALATE, prosecutors indicated to news the arrests also of Anthony Chiasson (Level Global Investors), Todd Newman (Diamondback Capital Management), and Jon Horvath (Sigma Capital Management).

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ST LOUIS (LALATE) – Anthony Chiasson, Todd Newman, and Jon Horvath have been arrested for alleged insider trading, claims a new report. Anthony Chiasson (Level Global Investors), Todd Newman (Diamondback Capital Management), and Jon Horvath (Sigma Capital Management) are allegedly among the growing number of defendants added to the trading probe by officials. When sought for comment, attorneys for the three individuals would not respond to requests by local news.

Two years ago, federal investigators raided four hedge firms. Those raids reportedly widened the initial investigation. Level Global, Diamondback, Loch Capital Management and Barai Capital Management were raided by the FBI in winter 2010. At the time, Rajat Gupta, formerly of McKinsey, Goldman Sachs, and Procter & Gamble was charged. He eventually was convicted last May of fraud and conspiracy charges. Gupta is now serving an 11 year prison term.

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LOS ANGELES (LALATE) – The Filene’s Basement 2011 bankruptcy announced today follows more store closures. Today Filene’s Basement filed for its third bankrupt this decade. The Chapter 11 action was filed by Syms Corp, owner of the company the last two years; Syms is already under fire for its handling of Filene’s since 2009.

Just last month, Filene’s Basement announced multiple store closures. Filene’s Basement told news in October that fifteen percent of its store closures would be effectuated by New Years. Among the stores closing are four Massachusetts locations.

In advance of its 2009 bankruptcy, Filene’s Basement closed eleven stores. A reported twenty-two total stores will remain operating by 2012, claimed news last month.

Esopus Creek Value Series Fund filed a shareholders lawsuit this year claiming that Syms is “failing to make progress integrating Filene’s Basement effectively, and continues to hemorrhage cash, yet recently signed several additional store leases, including the most expensive lease in the company’s history.’’

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LOS ANGELES (LALATE) – Friendly’s will be closing sixty-three stores today, locations confirmed to news as underperforming. The Friendly’s news announcement follows confirmation that the burger chain has filed for chapter 11 bankruptcy protection. But the good news for employees is  that the remaining four hundred twenty-four stores will remain open, and operating, through the bankruptcy case.

The Friendly’s restaurants slated for closures were not detailed in today’s court document. “The strategic decision to pursue a financial restructuring will allow us to proactively and quickly improve our financial position and ensure we have the resources to build a better and stronger Friendly’s,” Chief Executive Harsha Agadi said in a news statement Wednesday.

The chain has recently spent efforts on expanding the Friendly’s Express self-serve stores. It remains unclear if those stores are among the locations slated for closures.

In court documents today, the chain reveals that Friendly’s Restaurants Franchise LLC accounts for assets and liabilities between $10-$50 million and Friendly Ice Cream Corp accounts for assets and liabilities between $100-$500 million.

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LOS ANGELES (LALATE) – The Federal Reserve’s choice of “Operation Twist” to ease portfolio yields is being criticized as just a flashdance for the U.S. markets that doesn’t cure long term economic problems. Just as Alex Owens chose a short term job as a welder to get into ballet school in the 1983 film Flashdance, Operation Twist is being criticized as an inadequate short term plan to remedy the biggest problem with the nation’s economy: unemployment.

In Flashdance, Jennifer Beals’ character had a dream of turning her life around. To do it, she took an unlikely short-term twist in her life, becoming a dancer at night. Today, the Federal Reserve announced news that it would sell $400 billion of the Fed’s shorter-term securities. With that money, it would buy long term holding, in essence rebalancing the yields of its $2.87 trillion portfolio.

The purpose is to leave short-term rates unchanged and lower long-term bonds. The Fed believes that idea will fix the problems with the U.S. economy. Critics believe it will at best be a short-term fix, and at worse may actually hurt the economy.

“This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative,” the Fed said in a news statement today. The purpose is to help mortgage holders, stimulate refinancing and hence increase economic development.

But will it work? Many analysts think it will fail. The disapproval of the plan is widespread. Three regional bank presidents, Richard Fisher of Dallas, Narayana Kocherlakota of Minneapolis and Charles Plosser of Philadelphia, all confirmed to news their disapproval of Operation Twist.

Most critics say the problem with the nation is jobs, not mortgage rates. “This is not a situation where people are saying, ‘gee, I really want to buy that house but interest rates are too high’,” said Frank Sorrentino, CEO of North Jersey Community Bank in a statement to news. “Rates are already at historic lows and over the last six to nine months, we have not seen loan demand go up.”

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