Archive - May 20, 2013

• Obama's Counsel Was Told of IRS Audit Findings Weeks Ago (WSJ)
• North Korea fires sixth missile in three days (Reuters)
• Enron No Lesson to Traders as EU Probes Oil-Price Manipulation (BBG)
• Don't cry for me, Eurozone: Thinking the Unthinkable - Quitting a Currency (WSJ)
• H-1B Models Strut Into U.S. as Programmers Pray for Help (BBG)
• Gold Bear Bets Reach Record as Soros Cuts Holdings (BBG)
• Yahoo has agreed to pay $1.1 billion for Tumblr (WSJ)
• JPMorgan Holders Led by Chairmen-CEOs to Vote on Dimon (BBG)
• Apple faces grilling over US tax rate (FT)
• Nissan to Sell First Joint Minicar to Expand in Japan Market (BBG)
• Fierce battle for corporate loans sparks US bank risk concerns (FT)
• Microsoft Updates Xbox as Apple to Facebook Gain in Games (BBG)

The longest ongoing government "sting" operation against a hedge fund, possibly in all of history, that which absolutely everyone has known about for years now i.e., against Steve Cohen's SAC and its Bernie Madoff-esque series of profitable years (at least until recently that is, when "expert networks" no longer accept any calls originating out of Connecticut or New York), may be coming to an end, following what the WSJ reports may be an imminent filing of criminal charges against the hedge fund. "U.S. prosecutors are considering possible criminal charges against SAC Capital Advisors LP as a result of the government's insider-trading investigation of the hedge-fund firm, according to people familiar with the matter.  It isn't clear what led prosecutors to warn the Stamford, Conn., hedge-fund operator that it could be charged criminally. But the move is the strongest sign yet that prosecutors and the Federal Bureau of Investigation are trying to ratchet up the pressure as a five-year deadline looms to file the most serious charges related to trading that allegedly involved Mr. Cohen."

A quiet day unfolding with just Chicago Fed permadove on the wires today at 1pm, following some early pre-Japan market fireworks in the USDJPY and the silver complex, where a cascade of USDJPY margin calls, sent silver to its lowest in years as someone got carted out feet first following a forced liquidation. This however did not stop the Friday ramp higher in the USDJPY from sending the Nikkei225, in a delayed response, to a level surpassing the Dow Jones Industrial Average for the first time in years. Quiet, however, may be just how the traders at 72 Cummings Point Road like it just in case they can hear the paddy wagons approach, following news that things between the government and SAC Capital are turning from bad to worse and that Stevie Cohen, responsible for up to 10-15% of daily NYSE volume, may be testifying before a grand jury soon. The news itself sent S&P futures briefly lower when it hit last night, showing just how influential the CT hedge fund is for overall market liquidity in a world in which the bulk of market "volume" is algos collecting liquidity rebates and churning liquid stocks back and forth to one another.