Newspaper wrap-up: HSBC rejects activist investor's demands

MAJOR PAPERS:

The SEC is said to be preparing civil charges against past and present employees at a number of brokerage firms, including Morgan Stanley (NYSE: MS), regarding abusive stock lending, reported the Wall Street Journal (subscription required).
Ron Gettelfinger, the UAW president, has put aside talks with General Motors Corporation (NYSE: GM) about a trust fund to oversee retiree health care, to instead focus on a new four-year contract that doesn't include the fund, according to the Wall Street Journal.
The Financial Times (subscription required)) reported that Absolute Capital Management froze withdrawals from eight of its hedge funds yesterday, after it discovered up to $530M of previously undisclosed investments in illiquid shares of tiny U.S. companies.
The Financial Times reported that British bank HSBC Holdings (NYSE: HBC) has rejected activist investor Eric Knight's demands for large-scale changes in the bank's corporate governance.

OTHER PAPERS:

The consortium that had agreed to buy Sallie Mae (NYSE: SLM) for $25B is going to reopen negotiations and try to obtain a lower price, reported the New York Times, citing sources.

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