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The Fairfax Chronicles Part 1 - Exposing SAC's Alleged Market Manipulation And Insider Trading Schemes

Tyler Durden's picture




 

The story of Fairfax Financial vs almost every single US-based hedge fund is nothing new. The company has long been embroiled in litigation against a bevy of hedge funds, including SAC Capital, Exis Capital, Third Point, Kynikos, and Institutional Credit Partners, contending that ever since the start of 2002 it was the repeated target of bear raids, which involved not just a cabal of bearish hedge fund managers who would allegedly (although we now have evidence) spread rumors, innuendos, and outright lies about the company in the hope of bringing the price down (whether through naked shorts or otherwise is irrelevant), but also sellside research analysts, and of course media lackeys, willing to pander to the hedge fund "masters of the universe" in hopes of the occasional bone thrown their way. The reason Zero Hedge had largely ignored this story over the years is that its narrative truly reads like something out of a conspiracy theorist's wet dream: the allegations previously presented by the mainstream media implied such a level of collective deviousness and manipulation, that it would bring about the immediate ridicule of anyone who dared to bring them up in polite society. This is no longer case.

On Friday, Reuters' Matt Goldstein brought our attention to a just declassified document in the case (Superior Court of New Jersey, MRS-L-2032-08) from April 1, 2008 which until very recently existed in the void only under seal with confidentiality provisions due to some very unflattering exposures regarding the behavior and/or maturity level and language of key defendants (primarily Dan Loeb and Adam Sender). Goldstein's report on some of the florid language presented in the 800 page "Plaintiff's Memorandum in Opposition to Defendants' Motions for Partial Summary Judgment and to Determine Choice-of-Law" can be found here. Yet going through this filing, which incidentally reads like a Grade-A thriller, highlights much, much more than just some crude language. With extensive proof courtesy of e-mails, instant message transcripts and notes, we find that the "conspiracy" case brought by Fairfax (which incidentally) recently traded near decade highs. In fact, previous disclosures in the case already led to the ignoble termination of one sellsider involved: John Gwynn, who would fabricate reports based on hedge fund solicitation, advise hedge fund clients of report issuance dates, and send his non-public research days in advance to the defendants, in exchange for receiving trading commissions. And while reading bits and pieces of the filing is informative, it is not until one has read it in its entirety does one realize why hedge fund managers believe they are untouchable: after all the accusation presented herein, and validated through subpoenaed evidence, is nothing short of one of the biggest conspiracy theories ever presented to the public. Whether it is proven true remains to be seen: the case is still ongoing. In the meantime, we will provide our readers with as much of the plaintiff's case as possible. But before we get into the meat of the matter, today we wish to present the accusations levelled against one SAC Capital, in what is possibly the most controversial if, some would say, realistic description ever proffered to the public of this secretive hedge fund which controls up to 3% of the NYSE daily volume.

When one speaks of Stevie Cohen, it is usually with unbridled fawning, in hopes of extracting extrernalities, particularly by members of the media or blogosphere, with admiration, in hopes of getting a job there, particularly by employees of other hedge funds, biotech companies, investment bankers or the SEC (naturally), or, one just doesn't speak at all: after all, SAC, which no longer is as prominently in the public's eye as it was in the mid/late 2000 period, is well known as one of the most ruthless hedge funds - both internally and externally. After all who in their right mind would consider crossing a man who is known to (allegedly) sexually "assault" his male traders, offer on site psychological counselling, and who also just happens to be a billionaire thus having unlimited access to any resource... and recourse.

Not us.

We leave that to our far braver and wealthier peers at mainstream media organizations like Bloomberg, Reuters and the New York Times, but certainly not Barron's, TheStreet.com or NYPost, as they were all in on the scheme as will soon be revealed. 

Which is why we will let the lawsuit filed against SAC among others do the talking. Naturally, this is just one side of the story. Yet we are confident that readers will certainly enjoy that surprisingly coherent narrative which perhaps the SEC should consider reading. After all, it is hardly a secret that the person at the center of the recent "expert trading" network crack down is none other than the man who formerly had an ice rink in his own back yard.

This is the first post in a series exposing the true inner working of the hedge fund world. This following exposition on SAC Capital is merely the appetizer.

From Docket No. MRS-L-2032-06, Fairfax Financial Holdings Limited v S.A.C. Capital Management LLC et al (pp 192-197)

The S.A.C. Defendants

The S.A.C. hedge funds derive their names from the initials of their founder and leader Steven A. Cohen. Cohen is known in the industry as the "most powerful trader on Wall Street you've never heard of" because of the "highly secretive and stupendously successful S.A.C. funds he controls." Defendant Cohen began his hedge fund through major ill-gotten gains from a substantial trade that he executed based on material inside information about a merger transaction and about which he asserted the Fifth Amendment when he was questioned by regulators.

Since that time, however, Cohen has grown his funds so that today Cohen controls no less than $12 billion and regularly accounts for 3% of the NYSE daily volume and 1% of the NASDAQ daily volume. These investment dollars are channeled through several different companies or feeder funds -- including a core fund, a global diversified fund, a health-care fund, and Defendant Sigma fund (comprised of Cohen's personal monies), all of which Cohen manages in a highly integrated and hands-on fashion without regard to appropriate formalities and for the purpose of disguising his participation in fraudulent and other illegal trading activities.

Cohen's market influence extends much further than the S.A.C. funds he directly controls. In addition to the billions he controls directly through those funds, he has also invested billions more in non-S.A.C. funds, including funds formed by former S.A.C. managers who are required to agree as a condition of S.A.C. employment to permit Cohen to hold up to a 50% interest in any hedge funds they form after leaving S A.C. Through such S.A.C. satellite" or related fund investments, Cohen is better able to mask his trading and investment strategies and the frequent market manipulation employed in executing those strategies. Cohen likewise is very closely involved in the management and decisions at these satellite funds, and communicates constantly with the managers there to ascertain market intelligence and coordinate his investment strategy. In addition, S.A.C. regularly communicates with other market participants, including putative competitors, at specially scheduled "idea meetings" for the purpose of collaborating with and among such putative competitors. Consequently, Cohen personally has one of the most, if not the most, powerful market-Moving capabilities on Wall Street.

In the first 12 years since he formed S.A.C. Capital Advisors, Cohen had regularly generated incredible returns in the range of 40% per annum. Reflecting this extraordinary performance, investors pay him a 50% success fee, far above the 20% industry standard. As a result, Cohen's annual S.A.C. management fee regularly has exceeded $400 million, which is in addition to profit he earns on his own monies invested in Sigma and other S.A.C. and non-S.A.C. funds. Cohen himself reportedly earned $550 million in 2005, and $1 billion in 2006.

Unlike most hedge funds, S.A.C. seeks no volume discount on its enormous trading costs and commissions, and consequently pays over $150 million in annual commissions -- making it one of Wall Street's top ten trading customers. In addition, S.A.C. frequently purchases secondary offerings that include substantial built-in brokerage commissions for banks, and thereby further increases S.A.C.'s already substantial financial leverage and influence. Cohen uses this enormous financial leverage to support S.A.C.'s trading strategies by demanding access to material non-public information from financial institutions with whom S.A.C. does business, including non-public inside information concerning public companies and other clients to whom those institutions owe fiduciary and other duties of non-disclosure, and the substance and timing of reports and recommendations being issued by analysts for those institutions. Financial institutions and their employees understand -- because S.A.C. has told them and made it clear in practice -- that by providing S.A.C. with privileged access to material non-public information, they will be rewarded with business from S.A.C. and its related funds and the failure to do so would result in the inability to secure such lucrative business.

S.A.C. uses its enormous financial leverage not only to extract and trade on material non-public information but also to actually dictate the substance and timing of certain material information being disseminated to the market. For example, S.A.C. regularly uses its substantial financial leverage to direct and influence the analysis and recommendations of purportedly independent stock analysts and the time such analysis and recommendations are issued to the market, without any disclosure of the material conflict of interest reflected by its leverage and influence. Like S.A.C.'s demand for material non-public information, it is now simply understood in the industry that failing to provide S.A.C. with influence and control over the substance and timing of analyst reports will result in the loss of S.A.C.'s substantial business.

Those who fail to produce at S.A.C. or its related funds are quickly terminated or lose their S.A.C. investment funds: "At S.A.C., you either perform or you're dead," according to one public report by an insider. Such policies ensure that those who remain at S.A.C. are willing and capable of doing whatever it takes to secure the extraordinary performance Steven Cohen demands. The enormous pressure to perform at S.A.C. was particularly acute in 2003 after Cohen had experienced what insiders called "quite a disappointing year" of 14% returns and $100 million in management fees in 2002.

In addition to trading on material non-public information, the S.A.C. Defendants and their related funds orchestrate short-selling "bear attacks" on publicly traded companies where they need a "catalyst" to move the stock price in line with their investment needs. They prosecuted these attacks on Fairfax and other targeted companies by, among other things, paying, pressuring, and otherwise influencing purportedly independent analysts and others working with S.A.C, including over the years Defendants [John Gwynn, a then sellside analyst at Morgan Keegan] and [Spyro] Contogouris, to disseminate materially false and misleading information about the business, accounting, and corporate governance of those targeted for Bear Raids and securing material non-public information.
 
Indeed, as set forth in detail below, Gwynn issued his initial report on Fairfax at a time when S.A.C. had a substantial short position in Fairfax, was actively searching for a catalyst to move the stock price down, and was communicating regularly with other short-sellers such as defendants Chanos, Kynikos, and Lone Pine, and others, including those with contacts to Gwynn, such as Lone Pine. As part of this effort to find a catalyst, in late 2002, S.A.C. lobbied research and ratings analysts to issue negative reports or downgrades on Fairfax and discussed the same with other short sellers, including defendant Lone Pine. As part of that effort, S.A.C. communicated with CIBC research analyst Quentin Broad in or about November 2002 about initiating coverage on Fairfax and understood from those conversations that Broad would initiate such coverage on Fairfax by the end of 2002. However, in December 2002, S.A.C. learned from Broad that he would not be able to initiate coverage by year end or by any definite time in 2003, and S.A.C. used this material non-public information to adjust its investment decisions

And as set forth in detail below, Morgan Keegan and Gwynn then agreed to initiate negative coverage on Fairfax in and around late November/early December 2005 after consultation between and among Defendants and Enterprise Members, including Lone Pine, which was also communicating with S.A.C. about their respective substantial short positions in Fairfax and the need for a catalyst.  S.A.C. was then tipped off by Chanos of Defendant Kynikos that Gwynn would be issuing a negative report on Fairfax. Gwynn provided S.A.C. with the actual research that would be published by Gwynn and informed them when it would be published, S.A.C. used that material non-public information in its investment decisions, and S.A.C. thereafter sent business to Morgan Keegan as a quid pro quo for Gwynn's assistance.

In addition, as also set forth in detail below, Contogouris got his "start" in the securities industry by working with Mr. Cohen, his general counsel Peter Nussbaum, and S.A.C. manager Jeff Perry. Initially, Contogouris was an insider at Hanover Compressor and provided material non-public information about that company to Cohen, who then took a short position in advance of Contogouris instigating an SEC investigation out of the SEC Forth Worth, Texas office and a class action lawsuit. Based on Contogouris' actions, Cohen profited and he paid Contogouris for his services. Contogouris then continued to work as one of many "outside consultants" working with Perry and others at S.A.C.

Contogouris was thereafter considered for employment at S.A.C., but after S.A.C. reviewed a background check on Contogouris, it determined that formal employment was not appropriate.  Instead, Contogouris began working for various S.A.C.-spin-offs or affiliates, including Exis and certain of its subsidiaries, as well as with Perry, and kept in regular communication with Cohen up until the filing of the complaint in this action. One of those funds was S.A.C. spin-off Exis, in which S.A.C. was a central investor and with which Cohen maintained frequent contact with Sender concerning Exis' investment of S.A.C.'s money. As a result of these communications, Cohen was aware of Exis' strategy and methods for investing his money and its use of Contogouris to generate a profit on these positions.

Indeed, in 2005, when Contogouris began his work on Fairfax in earnest, he was working for three S.A.C.-related funds -- Exis, Bridger, and Prentice Capital -- each of which had major investment relationships with S.A.C. and at least two of which had major short positions in Fairfax. In this regard, Cohen not only maintained regular communications with these funds but also with Contogouris, whose employment he approved of, despite the fact that he was aware that Contogouris was not a real research analyst but an operative used to manufacture "catalysts" to move stock prices, and was also aware of Contogouris' fraudulent background. Nevertheless, Cohen at no time objected to or insisted any of the funds in which he was invested, and which were shorting Fairfax, stop utilizing Contogouris because Cohen understood and approved of Contogouris' role just as he had when he worked for Cohen directly in 2001 and 2002.

Throughout the period in question, and in particular while he was engaged in the conduct related to Fairfax that is the subject of the TAC, Contogouris continued to communicate on a regular basis with Cohen and kept him regularly informed about all material market information he possessed as did Sender and Contogouris' boss at Bridger, Roberto Mignone. And through these communications and those with Sender and Mignone, Cohen was aware of and approved of the their efforts to secure substantial profitable returns from massive short positions these S.A.C.-related funds had assumed in Fairfax and for which they were using Contogouris. And based on this information, various accounts at S.A.C. engaged in shorting and short-related trading parallel to that of Exis and others working on the Fairfax short during the time alleged in the TAC.

In order to ensure there are no records of his and his funds activities, Cohen insists that all electronic and other communications be destroyed and not stored.

Much more to come

 

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Sat, 03/12/2011 - 16:24 | 1044934 The Axe
The Axe's picture

Nothing new here....At one time in my life, young and trying to create a list of stocks in which to make a market in(slim pickings) at my first job on Wall Street I happen in to a bunch of stocks in which I was the only Christian, firms like Nash Weiss, Herzog, Carr, Sherwood, and Troster Singer controlled the brokers, had pawns at the company, and God forbide  you made a profitable trade against them, they would not only DK you, but call the boss of the trading desk and complain. No trades were executed without full compliance of the complex.

Sat, 03/12/2011 - 18:21 | 1045101 Michael
Michael's picture

Zero Hedge is like the 9/11 Truth of financial fraud investigations. The way the Internet blog research community crowd sources the bits and pieces of the puzzle makes federal investigators look like 6th grade school girls.

Sat, 03/12/2011 - 21:14 | 1045336 Robot Traders Mom
Robot Traders Mom's picture

@Axe-don't come on here and start saying stupid shit like "nothing new here" like you read the court docket years ago and you were the original Stevie Cohen. Cleaning the johns at the local merrill lynch office doesn't count as a 'wall street job.'

@Tyler-good fucking journalism. That is why zerohedge is the most important website in the world

Sat, 03/12/2011 - 22:57 | 1045578 chopper read
chopper read's picture

agreed.

Sat, 03/12/2011 - 22:16 | 1045428 JR
JR's picture

Thanks, TA. You underscore the major point of the article.

And that major point, IMO, is that if there are rules and laws and protections in America’s financial system and markets, they are not being enforced. The time spent in courts, the hearings, the charges, the trillions and trillions of words, over and over and over - and nobody pays. Nobody gets pinched, as the British say.  Or if they do, it’ll be someone from lower level management – or a scapegoat the boys want removed. 

Markets are voluntary.  If someone has his thumb on the scale, as Stevie Cohen has, eventually few people will voluntarily participate in that market.  And if it happens to be the only stock exchange in town, then the market ends.  It’s over.

The crimes on Wall and Liberty streets are legion, they are monstrous – they are multi-billion dollar crimes.  These people are carrying away chunks of the Capitol!   And it isn’t as if we don’t’ know them – we have their pictures, their names… their top level connections.

That’s their side.

Remember the movie the Keystone Cops? That’s our side:  Congress and our attorney generals either have been bought off like Frank and Dodd and MIller or they are fools. 

The American people are losing faith in their government; life in American is starting to depend on who you are and how you’re connected.  If you aren’t connected, they’re after you all the time – threatening with pay-more letters or we shut off the power, knocking on your door, stopping you on the street, stealing  your pension and your nest eggs, raising your taxes, bubble busting your house, forcing your college kid to take out a usurious loan, offshoring your job, robbing your 401(k) on Wall while you're at work on Main...

In short, if this corruption isn’t solved, it’s nothing short of the end of the country.  The organized crime on Wall Street is racheting up, the crimes are getting bigger, the people in charge posturing as TBTF.   There will be revolution against this, peacefully now, or later with bloodshed.  People can’t take this.  This country is too big, there’s too much involved, for a criminal oligarchy government to be able to sock in a police state and make the American people adhere to it.

 

Sun, 03/13/2011 - 09:26 | 1046316 Zero Govt
Zero Govt's picture

JR  -  nice post. Absoutely zero chance the system will have an outbreak of integrity. The corrupt ARE the system of Government. Nobody needs a conspiracy theory, the fact is hiding in plain sight with all politicians needing $millions from vested interests (big banks, biz and Unions) to fund their election campaigns. The Govt corruption is not only patent during elections but swimming in pork swill between them too

Sat, 03/12/2011 - 19:38 | 1045221 whacked
whacked's picture

+1

Sun, 03/13/2011 - 01:17 | 1045958 Cistercian
Cistercian's picture

 Deep capture is great...and where I first heard about cohen.And the assclown cramer.

 

Sun, 03/13/2011 - 09:35 | 1046331 Zero Govt
Zero Govt's picture

Zero Power  -  thanks for the link, i almost pissed myself! CNBC's Jim Cramer head of the shit stirring campaign via his 'TheStreet' media tool... his constant support of the Big Boys and his constant white noise on CNBC now makes perfect 'extra' sense ...Cramer the crone on the make, an even bigger 'tool' than i thought previous

Sat, 03/12/2011 - 16:39 | 1044959 Misean
Misean's picture

I'm shocked! It's run just like the syndicate. Capo Cohen. Hope he ends up like Myers Lansky.

Sat, 03/12/2011 - 19:02 | 1045155 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

WAR NEEDS TO BREAK OUT BETWEEN IRAN AND SAUDI ARABIA.

Otherwise Ladies and gentlemen, before they put the noose around Bernanke's neck, he will sing like a bird.

...Think Big Bank CEOs, think Steve Cohen and other hedge fund CEO's, and finally think Congress Leaders.

...Federal Reserve should be closed down.

Sat, 03/12/2011 - 21:04 | 1045327 Air_BernanQE
Air_BernanQE's picture

 

S.A.C is one of the hedgies behind Solar stock shorting. A retail investor can never win against him.

 

Sun, 03/13/2011 - 00:46 | 1045887 Yen Cross
Yen Cross's picture

I like your posts misean. Keep striking lightening!

Sat, 03/12/2011 - 16:46 | 1044971 6 String
6 String's picture

None of this will matter. Some wrist slaps, some drinks, some laughs...and it's back on.

Sat, 03/12/2011 - 17:20 | 1045014 Nacho.Libre
Nacho.Libre's picture

Of course this matters!  Between this and the release of the Bank of America stuff, Monday should be good for a 3% ralley in the market!  Nothing like some earthquakes, tsunamis, reactor blow ups, market manipulation, bear raids, banker fraud, etc. to push that day green!  Let's go all in! 

[/sarcasm]

Sat, 03/12/2011 - 18:03 | 1045071 6 String
6 String's picture

Good point. But I disagree. All this stellar news is good for at least a 5% pop tomorrow on the Dow, and at least a 12% pop for the Russell 2000.

Now, if we were Japan--now you're talking, a 3% pop we'd be good for on an minute event like that.

Sat, 03/12/2011 - 18:03 | 1045076 6 String
6 String's picture

Oh, and I know I said tommorow. Our market magicians can surely make it happen, even on a fucking Sunday.

Sat, 03/12/2011 - 18:21 | 1045105 Brokenarrow
Brokenarrow's picture

Yeah...here's my prayer to God:"let a seiemic fracture occur ten mi offshore of NYC"

Let me see them do a POMO and juke the ES futures from ten feet under water.

"Am I serious?," You ask. Yes. I am.

Fuck Wall and everyone living down there:) Yes. You heard me right.

Sat, 03/12/2011 - 17:00 | 1044976 Muir
Muir's picture

Ddddaaammmmnnn!

 

(read the whole thing)

 

But wait a minute.

Does anybody remember any of this on The new market wizards?

I seem to have forgotten that part.

 

__

 

For you guys that know about this, is this what Wyckoff meant by "smart money?"

 

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Sat, 03/12/2011 - 16:48 | 1044978 falak pema
falak pema's picture

Due diligence is like saying your prayers if you're religious, it's like doing pumps or doing one hour's jogging, if you're a fitness addict. It's a routine about a personal mind set. It's the signature tune of a life effort to stay yourself, find yourself. Its your own personal nest.... If you are in business it's the same thing. Only people don't see it that way. Then, it becomes 'they' and 'us', like in a rat race. We lose focus. We are no longer ourselves. We change the rules of fitness, of mind set : we become like them. We sing "do it to them before they do it to you"...It's the road to unfitness. But we kid ourselves  it's just business. Being top of the heap. Now its the mantra of the global age...we can see the disease...but we don't see the way out from it.

Sat, 03/12/2011 - 18:27 | 1045115 Misean
Misean's picture

Horseshit. These guys are plain and simple goombas (is there a yiddish word for goomba? Oye...). Crook's, theives, thugs, con artists, racketeers.

These guys didn't start off on some noble mission and get side tracked. Pure and simple grifters.

Sat, 03/12/2011 - 19:16 | 1045177 Lord Koos
Lord Koos's picture

I believe the word you're looking for is "gonif"....

Sun, 03/13/2011 - 16:13 | 1047055 MsCreant
MsCreant's picture

Shylock.

Sun, 03/13/2011 - 06:04 | 1046174 falak pema
falak pema's picture

I'm talking about the system not just these guys. Big difference. The system encourages lice to proliferate. 'Cos greed and sham is OK, if you can get away. Tricky Dicky said it before  the Watergate. Reagan made it the sacred mantra through deregulation for the "happy few" that prevails nowadays.

Sun, 03/13/2011 - 13:32 | 1046741 laughing_swordfish
laughing_swordfish's picture

Yiddish for "Crook, Thief,Thug, Con Artist, Racketeer" - " Gonif "

Plural: " Gonifim "

Sat, 03/12/2011 - 16:47 | 1044979 TradingJoe
TradingJoe's picture

As my grandpa used to say, many rich have even more corpses in their basements!!!

No wonder they are filth, criminal enterprises are all filth! Was smart enough to understand how "the market(s) work" when I started out in 1983!

When it's too good to be true....well you know the rest! Am mostly done by now, just literally playing a little (with options only) for old times sake and to "secure some extra gas money":))! Mostly helping few loyal clients and friends.

Otherwise I stay all in Physical PMs and cash! The most, UN surprising to me is the fact that no one eve goes to jail, see Frank Quattrone's "thing"! Madoff was a more then welcome scapegoat and the little guys of course, compliance arbitrage, settlements etc. what a joke, you steal, embezzel a few hundred grant and you're a crook, you steal a billion and you are the trader of the century! LMAO!

Sat, 03/12/2011 - 19:37 | 1045218 Bananamerican
Bananamerican's picture

"No wonder they are filth, criminal enterprises are all filth!"

yea, but they represent "State sanctioned filth"...this is the transcendent criminality of our greatest social "strivers"...

we've seen no prosecutions because the "prisoners" have already been incarcerated.....about 330 million or so

Sat, 03/12/2011 - 16:50 | 1044980 Atomizer
Atomizer's picture

Tyler, the empire needs money to continue operations. This old story provides a well needed income allowance to pad 'business as usual' continuation. We now can imagine how Bernie Madoff felt during his last moments running a Tier 2 government funded ponzi scam.

Sat, 03/12/2011 - 17:06 | 1044998 Thomas
Thomas's picture

Now I need a shower.

Sat, 03/12/2011 - 17:11 | 1045001 JR
JR's picture

Defendant Cohen began his hedge fund through major ill-gotten gains from a substantial trade that he executed based on material inside information about a merger transaction and about which he asserted the Fifth Amendment when he was questioned by regulators. – Tyler Durden

What does it mean to be connected?

Who – in America - remains except the Internet Tylers to set up a political barrier to world financial conquest by an international underworld financed by America’s captured monetary system?  The NYFed Goldmans and the JPMorgan Rothschild-Rockefellers and the SAC Capitals are using ill-gotten gains, Fed fiat and America’s wealth to acquire the world’s wealth, particularly through M&A. Their goal is a classless social order without frontiers, without protection from manipulative exploitation. 

This is no longer a political issue:  it is an issue of crimes against society.

Unfortunately, dealing with this massive problem is greatly hampered by the lockdown on financial communication within this country - specifically the taboos covering any kind of discussion of the Jewish role in America’s finance.  The key part of the subject is not who the Jews are; it is who the financial rulers of this country are.  We’re talking about America’s financial system!

The charts presented in “When Things Fall Apart” by Charles Hugh Smith this weekend pinpoint the 1980’s onward as a pivotal turn in upward gain flow to the capital/global corporations. The book, “The Politics of Anti-Semitism” edited by Alexander Cockburn and Jeffrey St. Clair and published by Counterpunch in 2003 gives similar weight to the 80s:

 “Since the 1960s, Jews have come to wield considerable influence in American economic, cultural, intellectual and political life.  Jews played a central role in American finance during the 1980s, and they were among the chief beneficiaries of that decade’s corporate mergers and reorganizations.  Today, though barely 2% of the nation’s population is Jewish, close to half the billionaires are Jews.  The chief executive officers of the three major television networks and the four largest film studios are Jews, as are the owners of the nation’s largest newspaper chain and the most influential single newspaper, the New York Times.

“That was written in 1993.  Today, ten years later, ardently pro-Israel American Jews are in positions of unprecedented influence and have assumed or been given decision making positions over virtually every segment of our culture and body politic. This is no secret conspiracy…”  -- Jeffrey Blankfort, The Politics of Anti-Semitism (2003), p. 102

And the beat goes on…

JPMorgan No. 1 Investment Bank Driven by Emerging Market Deals 03.06.11 | Bloomberg

Investment bankers, whose institutions have already been bailed out to the tune of $817 billion across the globe, now have something else to thank taxpayers for: deals…

The government-backed deals helped to push fee revenue up last year by 5.8 percent across the industry to $49.1 billion…as total deal volume stayed constant at about $7 trillion… The volume of announced mergers and acquisitions rose 27 percent, to $2.2 trillion, while fees rose 23 percent to $17.9 billion… More Mergers Coming…

http://www.bloomberg.com/news/2011-03-07/jpmorgan-tops-investment-bank-fees-spurred-by-deals-from-beijing-to-brazil.html

Goldman Heads M&A Rankings Spurred by Commodities Demand in BRIC Economies 03.06.11 | Bloomberg

Goldman Sachs retained its No. 1 ranking for the seventh straight year, showing that Western banks with global reach dominate the new merger landscape. Big Western banks led the way even in takeovers of companies based in emerging Asian markets. Goldman Sachs and Morgan Stanley, both based in New York, and Zurich-based Credit Suisse Group AG (CSGN) all logged more deals than local competitors…  With the International Monetary Fund forecasting robust growth in the BRICs in 2011, bankers say acquisitions will increase…  

http://www.bloomberg.com/news/2011-03-07/goldman-heads-m-a-rankings-spurred-by-commodities-demand-in-bric-economies.html

Sat, 03/12/2011 - 17:35 | 1045036 Michael
Michael's picture

Nice reporting JR.

The public at large know and understand this role the Jewish community has played in the social and financial destruction of the USA. This is not news, this is reality.

Zero hedge is like the 9/11 Truth of financial fraud investigations. The way the Internet blog research community crowd sources the bits and pieces of the puzzle makes federal investigators look like 6th grade school girls.

Sat, 03/12/2011 - 18:02 | 1045073 PhD
PhD's picture

community? I would rather focus on the mafia!

Sat, 03/12/2011 - 19:32 | 1045208 Lord Koos
Lord Koos's picture

Well that's a very small club to be half of, isn't it? So what if some Jews are successful financiers? Do you think they take their orders from the rabbi at the synagog or something?  Do you realize that the the huge majority of people who call themselves "Jewish" are just middle class at best? Are you not going to bitch about the other 50% of billionaires that are "Christians"? It's tiresome reading your garbage... fuck off Mikey -- take your generalizations, racism, predjudices, and stereotypes and shove them up your ass.

Sat, 03/12/2011 - 19:43 | 1045223 Michael
Michael's picture

No amount of trying to cover for them with rationalizations will convince the majority.

We have a Zionist occupied government, banking industry, and media that is very well documented.

The damage is done and irreversible. The chips will fall where they may and everyone who has looked the other way deserve what is coming to them for lack of lifting a finger.

Sun, 03/13/2011 - 01:09 | 1045939 vast-dom
vast-dom's picture

Disgusting to bring anti-semitism into this. Filth on top of filth. Michael you need to check yourself and fast.

Sun, 03/13/2011 - 07:55 | 1046238 Popo
Popo's picture

By the same logic, "whites" are to blame, and will deserve what is coming to them.

You're a true idiot Michael.

Sun, 03/13/2011 - 10:10 | 1046366 Charlie Bravo
Charlie Bravo's picture

Oh wow. So much for taking YOU seriously again in the future....

Charlie Bravo

Sun, 03/13/2011 - 00:54 | 1045903 Yen Cross
Yen Cross's picture

JR has no interest in you(skippy) He is a man of (honesty) JR does his homework.

Sat, 03/12/2011 - 18:01 | 1045072 AmCockerSpaniel
AmCockerSpaniel's picture

It's well know that; In the USA, there is crime without punishment for all Wall Streeters.

Sat, 03/12/2011 - 18:31 | 1045103 wandstrasse
wandstrasse's picture

I am bavarian, my dad & mom were born around 1930 thus educated/socialised by the Nazis and the 'Jud Süß' propaganda movie. They never really managed to stop believing in the jewish parasite-finance-Versailles-Treaty-conspiracy. I spent a considerable part of my life just thinking about Nazis, Jews and the Holocaust.

My conclusions: Jews are historically spread around the globe, nevertheless they share a bloodline. They feel like a family! This is a very fertile basis for a) finance, b) science, c) arts. That is why they lead in these areas. Period. Two thoughts are very dangerous: a) Jews think they are born superior. b) Non-Jews think they are born inferior.

Sat, 03/12/2011 - 19:34 | 1045216 Lord Koos
Lord Koos's picture

You can say the exact same thing about the Chinese... they are spread all overd the world, & seem to do good business where ever they go.  Your points a & b are pretty ridiculous.

Sat, 03/12/2011 - 22:11 | 1045421 Snidley Whipsnae
Snidley Whipsnae's picture

Interesting that the Jews and Chinese come up as 'being spread around the world and both groups are successful in business.'

These are the two groups that the much hated book, 'The Bell Curve', found to have the highest IQs.

One possible reason that these two groups might have the highest IQs (paraphrasing from Bell Curve analysis/speculation) is that both groups have suffered many ethnic diasporas due to wars, pogroms, etc, and only the brightest managed to flee and survive and reproduce.

I am not knocking Jews, Chinese or 'The Bell Curve', nor am I an advocate for any of them. Simply pointing out what I think is interesting and is seldom discussed... intelligence matters.

Sun, 03/13/2011 - 00:55 | 1045907 Yen Cross
Yen Cross's picture

The scum replicates. Lets configure your Mantra!

Sun, 03/13/2011 - 08:26 | 1046271 Snidley Whipsnae
Snidley Whipsnae's picture

So you believe that intelligence equals scum? ...and, BTW, I have no 'mantra' but am simply pointing out what is fairly obvious to a casual observer. All life replicates and the most successful life is the most intelligent life, and therefore, will have the best opportunity to replicate.

Some Chinese Emporers (and Western dictators as well) upon coming to power had all the academics and their books burned. The most intelligent academics fled ahead of the Emporers/dictators extermination edict. Those that fled lived to reproduce...

So, was the scum the Emporer/dictator that drove the intelligent to flee?... Or, was the scum those that were intelligent enough to flee and live to reproduce? Or, perhaps neither were scum but the new dictator/emporer simply could not tolerate intelligence in his fiefdom greater than his own for it was a challenge to his power?

BTW, I dropped a neg on you for attempting to change the meaning, or responding without comprehending, my post...and, I suggest you read and comprehend Machiavelli's 'The Prince' so that you will have a basic comprehension of how the intelligent control those that are less intelligent. You can't fight them and hope to win unless you understand them.

Sat, 03/12/2011 - 17:11 | 1045005 velobabe
velobabe's picture

tyler, i understand now, your fury. you are a fighter for all of us. this did read a bit like a novel. damn these rich people just suck. the billionaires are moving the millionaires out of town. gross, to all of them. best served cold, aye†

Sat, 03/12/2011 - 17:22 | 1045018 Atomizer
Atomizer's picture

damn these rich people just suck

 

Not all rich people suck, even the rich try to point you to the guilty party. Take note.

Sat, 03/12/2011 - 19:01 | 1045154 Muir
Muir's picture

I'm sure you are right, I just have yet to meet a rich person who doesn't suck.

 

 

Sat, 03/12/2011 - 19:48 | 1045227 Atomizer
Atomizer's picture

Muir, see those two tits bouncing? Been divorced twice and crawled out of barrel twice. Each time richer. I'm a 1% exception who doesn't suck.

Sun, 03/13/2011 - 01:12 | 1045944 vast-dom
vast-dom's picture

You should get out more Muir.

Sat, 03/12/2011 - 19:48 | 1045232 cosmictrainwreck
cosmictrainwreck's picture

please provide us a list of names, net woth/income and which whistes they blew. thank you.

Sat, 03/12/2011 - 17:20 | 1045015 MsCreant
MsCreant's picture

You MUST read that document about the sexual assault of a male employee. These folks are freaks. Making dude take female hormones, unrinating in his mouth, all part of a "training program." Holy hell.

Sat, 03/12/2011 - 17:41 | 1045045 long-shorty
long-shorty's picture

please... do you believe everything you read? It's juicy but it reminds me of the crazy tale of a married military officer I once knew, who, a believer in crazy things to begin with, filed a complaint that while on a work-related trip in Las Vegas, he was "drugged" and molested/raped by three female military personnel. It was the most ridiculous story I ever heard, and it just so happened at the same time he was falling apart at the seams mentally. Some people can't handle their own desires and their own perversion and their own responsibility for things, so they make up convuluted stories about alleged misdeeds by others. This complainant is probably deeply conflicted about his homosexuality and transvestitism, and suing was a great way for him to deny his own issues.

Sat, 03/12/2011 - 17:53 | 1045059 MsCreant
MsCreant's picture

If you are the lawyer, do you take the case, against this crew, who you know has lots of bad-assed lawyers to defend against this, unless you think something is there?

You could be right about his "conflicted feelings" AND some of these things could have happened. Too much of it is stuff that you can easily find out if it is a lie or not. People around the company seeing him in drag for instance. Hell, if he is not supposed to be there in drag, then how can he keep his job there that long?

If he sucked the guy's dick, he can describe it. If indeed other employees endured this stuff, they could step forward.

You are oddly dismissive, a little too confident if you ask me.

Sat, 03/12/2011 - 18:15 | 1045092 long-shorty
long-shorty's picture

If I am the lawyer, I take this case (a) for cash, not contingency, or (b) because I don't have insight into the personality disorder of my client, or (c) for contingency, because of the nature of the allegations and the depth of the pockets I am suing, I suspect I can get a settlement, whether or not the allegations are perfectly or mostly true.

I'm not saying there wasn't a sexual relationship, but somehow I doubt the motivations behind it were as described.

People allege a lot of things these days; some are true, some are not.

Sat, 03/12/2011 - 18:51 | 1045141 MsCreant
MsCreant's picture

Dear Horsey,

My original assertion still stands, these folks seem freaky. I see homosexuality as every one's right if that is how they wish to express their sexuality. This is about expressing power through sexuality, conflating gender role with sexual orientation to humiliate his subordinate, so that he can feel powerful.

Do you know the Frank Herbet story, Dune? I see this guy as like The Harkonnen. It seems to fit.

Sat, 03/12/2011 - 20:34 | 1045285 citta vritti
citta vritti's picture

+1 pustule

Sat, 03/12/2011 - 22:30 | 1045446 long-shorty
long-shorty's picture

Ms, I'm not sure where you took from my post that people don't have a right to express their gay sexuality. People should enjoy whatever kind of sex they want; the more of it the better. (Incidentally, Jeffrey Gundlach has got to be one of my heroes at this point; if you can undergo a vicious smear campaign where people draw unnecessary attention to your personal sexual choices, and have people be so OK with it that you still get to manage billions of dollars, then you are living right.)

There are definitely people out there whose sexual desires are so disconcerting to their conscious mind that they just can't handle the truth, and pretend to be something they aren't. Some of these people pretend to be straight for a long time, others get "cured" by right wing organizations, and still others end up in strange workplace situations and then file lawsuits.

If these allegations are true, then the conduct is inexcusable, and the organization has some serious things it needs to deal with. But there's no need to assume they are true just because they were made.

Sat, 03/12/2011 - 19:25 | 1045196 DollarMenu
DollarMenu's picture

MsCreant -

You know the guy, Tong, could have walked out at any time.

He whored himself out for a million dollars and now he is pissed

that it did not go right.  Not saying the procurer, Jiang, was any better,

just saying there was a door that went out.

 

The blind pursuit of 'the money' is what's undoing everyone and everything.

What more blatant evidence is needed?

 

 

 

Sat, 03/12/2011 - 20:53 | 1045308 MsCreant
MsCreant's picture

No arguement with any of that.

I still hold the boss more responsible for running a freaky workplace atmosphere. Environment is everything. If anything like that happened in my workplace, someone else would tell. I know because something much milder happened in my workplace (actually in two workplaces it happened like this). A subordinate told me, I told my boss, the boss hunted it down and killed it.  In the first setting, they loved nailing the guy, made them feel kinda macho and heroic. Don't think I didn't encourage that. In the second setting, they nailed the woman (lesbian harasser), but got mad at me too. New management now.

Sat, 03/12/2011 - 17:23 | 1045017 gordengeko
gordengeko's picture

Vernacular precision with a touch of high brow humor (on most stories) all while delivering the much needed financial crack for the mind that mainstream news won't touch!  Grazie ZH

Sat, 03/12/2011 - 17:27 | 1045025 long-shorty
long-shorty's picture

TYLER, YOU ARE A FUCKTARD. This situation is little different than Allied Capital vs. Einhorn. Lots of allegations from a shitty company against people who proclaimed it was shitty. Also, FYI, just because I call you a fucktard doesn't make me guilty of a conspiracy against you.

 

Sat, 03/12/2011 - 17:45 | 1045048 lizzy36
lizzy36's picture

So, I am guessing that you read all 800+ pages of Fairfax Financial Holdings Ltd, and Crum & Forster Holdings Corp vs. S.A.C. Capital Management L.L.C, et al. to reach your conclusion?

I think not.

Fucktard indeed, my friend.

Sat, 03/12/2011 - 18:04 | 1045074 long-shorty
long-shorty's picture

I read what Tyler posted above. This complaint is one side's story. And if THAT is the best Fairfax has, it isn't very good.

How is it material inside information to know ahead of time that an analyst might publish a piece on a company, and it might be negative? Hell, if I was short a company and I knew it was a fraud, I might send it to ZH (although I might do it with a different name now that I've called Tyler a fucktard), and ZH might publish it, and that might drive the stock price down. Oh wait, ZH does that all the time. Is TD guilty of profiting from material inside information? Hmmm... the plot thickens.

Likewise, if I knew a company was really great and had no analyst coverage, I'd tell every relevant analyst I know about that company and hope that they'd eventually initiate coverage. No "hey buddy let me do five million shares with youir firm if you repeat my positive thesis on XYZ." People share great trade ideas all the time once they have enough of it on themselves. If sharing trade ideas is a crime, then half of ZH is criminal for trying to "manipulate" the silver market higher. This is just a company (Fairfax) trying to make its attackers look bad. It's nearly the same story every time; I mean, is Overstock is victim of a hedge fund conspiracy, or just a paranoid and ineffective CEO? That's pretty obvious. So I wouldn't be jumping to conclusions based on one side of this Fairfax story.

Sat, 03/12/2011 - 18:36 | 1045126 Misean
Misean's picture

LOng-shorty cashin' his paycheck! Good horsey. Run along to the glue factory now.

Sat, 03/12/2011 - 19:36 | 1045152 Howard_Beale
Howard_Beale's picture

Is your real name Cohen, Jiang, or <insert hedge fund cretin name here>??? You outed yourself with that Overstock comment. Well done. Hell, maybe you Herb Greenberg.

Fucking troll.

Sat, 03/12/2011 - 22:36 | 1045464 long-shorty
long-shorty's picture

Howard, if you think Overstock is a good company that got taken down by greedy short sellers, clearly you and I are not going to agree on that one, or this one, or really anything that has to do with shorting any security.

For people with an open mind, I'd recommend David Einhorn's Fooling Some of the People All of the Time. The useless politicians and regulators (that ZH so frequently and correctly bemoans) are NOT on the side of the short sellers; they are on the side of the bad companies.

 

Sun, 03/13/2011 - 02:28 | 1046025 Howard_Beale
Howard_Beale's picture

I have actually read Einhorn and know how he thinks. That aside, consider this:

1) Patrick Byrne, CEO of Overstock, won. I have corresponded with the man and believe in his business model. He's the TJMax of the web.

2) Overstock was not taken down and is a wonderful site to shop.

3) David Einhorn is just as much of a scumbag as the rest of the lot. Just because he comes off as a nice rapist doesn't mean he isn't committing the same crimes. He's a smart little fucker but I am sure that he attends all the hedgie golf outings and shares the same game plans.

and 4)

just to put this whole thing in perspective on my attitude about shorting, I made more money shorting the Nasdaq on pullbacks in 1999/early 2000 than most people did being long. I short indices, not individual stocks. I believe in shorting the market.

I do not believe that hedge fund cartels that manage all aspects of a single stock to crush it for no good reason other than their personal profit is the way the market should operate. Dendreon is also a great example.

So let's step back to 2008. A great case in point: Citi. Fucktard Dick Bove said it was a buy of a lifetime at $20 and the rest is history. The market knew what it had on its books and it went down because it had no value. Not because the hedge fund cartel was short financials--many of us were long the SKF or buying puts on the XLF. And gazillions of people were short the stocks--or buying puts--not just the hedge funds. It was a crowded trade for a reason. Can you say TARP?

This is entirely different than Overstock and Fairfax. When the gang gangs up, they do it through analysts they pay to put out negative coverage, mouthpieces in the MSM, message boards rumors started to get the ball rolling, and more that essentially are racketeering in their own interests to take down a company for no reason, other than their own profit. And you seem to be oblivious to the fact that Overstock and Fairfax are still going concerns, not to mention Dendreon with the best hope for prostate cancer.

Sun, 03/13/2011 - 11:32 | 1046457 long-shorty
long-shorty's picture

Howard,

Overstock is a "going concern," but is only marginably profitable, and still trades at a pretty high valuation. (And incidentally, my only position ever in the stock was to be long it recently, for a few hours, after they announced an earnings beat that wasn't really a beat, b/c I knew there were so many shorts, that they would get squeezed even by the non-beat beat.) I shop there. It's a fine place to get low-end case goods imported from China when you need that sort of thing.

As for Dendreon, I know two shorts personally who collectively lost millions there, and though I chose not to short it b/c it seemed to me that the FDA was oblivious to the serious flaws inherent in DNDN's trials, the shorts I know shorted it because their solid understanding of medicine and statisics, not because of any friendships or conspiracy. The folks I trust most when it comes to data analysis and statistics aren't convinced that Provenge actually works at all. Regardless of whether Provenge is effective or not, if the FDA accepts the same trial methodology for Provenge for future cancer drugs, we are definitely going to have some very expensive cancer placebos on the market.

I doubt Einhorn has time to golf that much, but even if he does, the guy started his fund with very little, and worked hard and performed well for his investors, which is why he manages so much now. From what I know of him, the guy is excellent. I don't know where you came up with rapist; to the contrary, he seems like a real family man.

The large cap banks sold off because their liabilities were worth more than their assets. You'd think that would mean the equities would be worth zero, but thanks to the magic of government bailouts, they weren't. It didn't take a conspiracy to tank bank stocks--it took incompetent risk management and excessive leverage.

Anyhow, if there's a great big hedge fund conspiracy to short stocks, I sure wish someone would let me in on it. Mostly these days, I see that many terrible companies trade at high valuations and even some of them with only 2 or 3% of the float held short have no borrow available, so it's impossible to short even the most overpriced junk. That doesn't do anyone any good. If we ever don't get QE^n, then that stuff is going to tank even harder on the way down, because there won't be any shorts covering.

 

Sun, 03/13/2011 - 14:00 | 1046800 laughing_swordfish
laughing_swordfish's picture

Long-Shorty:

Thanks for your piece. At least I'm not the only trader out there viewing either terrible companies (or good companies that have become terrible because they have become way over priced) and having difficulty getting a "borrow" with < 2-3% short interest as a percent of float.

Here at DKM we begin with Fundamentals and I'm getting tired of wasting my time digging up good short ideas only to get "no borrow"....

And I know this is a bit OT, but I would be surprised like not at all to see the continuing revelations about Stevie Cohen and SAC include a disclosure of a long-term, symbiotic relationship between the many SAC entities and the prop trading desk at Goldman Sachs...

Sat, 03/12/2011 - 19:05 | 1045159 lizzy36
lizzy36's picture

As I suspected unlike Tyler, you haven't read the 800+ pages.

Now, granted not all parties have been deposed.

But when one group (SAC, Loeb, Chanos just to name 3 members of the group) gets together, hires and pays Contogouris, for the express purpose of writing and disseminating 35 negative research reports, and said group is all short FFH, might one suspect at minimum collusion and perhaps even conspiracy?

And that is merely one item in the 800+ pages.

Further, the test for material information is whether or not said information is expected to move a stock once it becomes public. Trading, knowing a certain analyst is going to release a negative or positive report on a stock, prior to general public release, would constitute insider trading. Once that report has become public, sending it to ZH and having them post it would not.

Please feel free to actually go through some of the material, and then get back to us with a coherent argument.

Sat, 03/12/2011 - 19:36 | 1045172 Howard_Beale
Howard_Beale's picture

RICO charges at the very least.

Sat, 03/12/2011 - 20:39 | 1045288 citta vritti
citta vritti's picture

+1 for clarity of thought and expression

+1 more, for substance

Sat, 03/12/2011 - 22:38 | 1045491 long-shorty
long-shorty's picture

Lizzy,

Every single client of every single investment bank every trading day gets research that is released to clients before it is released "to the public."

If you know a company's done bad shit, and you are short the stock, and you tip an analyst off as to exactly what bad shit the company has done, there is nothing about that which constitutes insider trading. And that seems to be the jist of these allegations, along with some middle school name calling.

 

Sun, 03/13/2011 - 02:33 | 1046053 Howard_Beale
Howard_Beale's picture

Long-shorty--you have not made one intelligent case for your stance. We know the game. We know the way it works. You seem to think we are children in the Wall Street playground. Chances are you were born after I started working on Wall Street. Give it a rest.

Sun, 03/13/2011 - 11:35 | 1046461 long-shorty
long-shorty's picture

"We know the game. We know the way it works."

Sounds like you might have done some very bad things during your career, Howard, and now you're "converted" like Jim Cramer. Perhaps you both belong in jail.

Sun, 03/13/2011 - 17:32 | 1047227 Howard_Beale
Howard_Beale's picture

You are very funny...

Sat, 03/12/2011 - 20:26 | 1045276 Northeaster
Northeaster's picture

"Is TD guilty of profiting from material inside information?" -

 

Interesting, since if he is who some of us think he is, he can never make a trade for the rest of his life here in the United States.

Sat, 03/12/2011 - 19:09 | 1045165 Muir
Muir's picture

Lizzy36 "So, I am guessing that you read all 800+ pages ..."

-

I'm pretty sure she/he didn't even read the post all the way through.

Sat, 03/12/2011 - 17:48 | 1045052 GoldmanSux
GoldmanSux's picture

Fairfax isn't a shitty little company. It is a very good company. The investment of their surplus is one of the best records in the world insurance industry. If the allegations are true, this is an unethical and underhanded business practice and should be prosecuted.

Sat, 03/12/2011 - 17:36 | 1045033 Mark McGoldrick
Mark McGoldrick's picture

This is the sort of article that reminds me why I visit here, and why I became so disenchanted with ZeroHedge when material such as this was replaced with all the loony libertarian crap. 

Thanks Tyler, for a glimpse into the ZH past....

 

 

Sat, 03/12/2011 - 18:39 | 1045130 ZeroPower
ZeroPower's picture

Liberterian? You must mean free market - the way it should be.

Or are you perhaps too far left to grasp this?

Sat, 03/12/2011 - 17:51 | 1045055 ISEEIT
ISEEIT's picture

So.

I have been following ZH for 1 year+.

I adore the now absent Marla forever. She stole my heart and still has it.

I looked into TD's background and it seems to me that he is 'a man scorned'.

I suspect that "tyler" got burned and now the favor is being returned?

I know how vehemently some on this site despise Christianity, but what I first take from this drama is that some of the Catholic churches greatest Saints were/are former sinners.

YOU GO TYLER!!!

Maybe the real first rule of fight club should be "don't fuck with junior members, cause they might fuck back"?

Enough man love for now. (I'm married by the way).

He-he

 

 

Sat, 03/12/2011 - 18:01 | 1045068 Josh Randall
Josh Randall's picture

What goes around comes around, and it's comin' around -- the global ponzi's are being exposed. Perhaps nothing happens, but perhaps something does...in the meantime guys like Ron Paul gets more opportunity to shine a light on the illegal and unconstituitional (and morally reprehensible) usery of the Fed and Central Banking. Perhaps nothing happens, but perhaps something does...

There will be a day when something DOES happen - the nuevo rich are getting screwed now too and turned on by those they thought they were on the same team with (i.e. the ulta slimey). We will start to see rats jumping ship and turning on each other soon enough.

Some of you high powered Wall Street types that read this blog and know whats up, need to smack the $hit out of these c0cksuckers when you see them at the gym or cocktail parties!!! 

Sat, 03/12/2011 - 18:38 | 1045129 max2205
max2205's picture

Looks like shit goes north:

BreakingNews Several hundred thousand Portuguese march in Lisbon, 10 other cities over government spending - Reuters
about 2 hours ago

Sat, 03/12/2011 - 18:45 | 1045137 max2205
max2205's picture

07:31 13 March
NEWS ADVISORY: 6th reactor at Fukushima nuke plant loses cooling functions

Sat, 03/12/2011 - 19:35 | 1045213 razorthin
razorthin's picture

This is basically the same shit Cramer admitted to doing himself as a HFM.

Sat, 03/12/2011 - 19:52 | 1045238 cosmictrainwreck
cosmictrainwreck's picture

well, then, put his sorry ass in jail, too

Sat, 03/12/2011 - 19:49 | 1045234 tony bonn
tony bonn's picture

this story is very interesting and demonstrates that most of the banksters on wall street are frauds and incompetent ignoramouses who can only succeed through crime and brutality rather than through intelligence and acumen. they are mobsters....

the sex story was also sick but so was its victim....why would a man sell his soul to endure such humiliation for 500k per year? i would shovel shit before i submitted to that horse crap.

people, there is far more to life than money....even more so than staying alive.

Sat, 03/12/2011 - 20:11 | 1045260 The Axe
The Axe's picture

If Cramer could steal this good, he still would have his fund. Making money in his those days was easy...Goldman friend calls Cramer, We got hot money that want 200 large in Yahoo, go grab 10,000 before a tear the street a new asshole. Meet me a Harry's at 4:30 drinks on you..

Sat, 03/12/2011 - 20:56 | 1045312 prophet
prophet's picture

Complete failure in enforcement, oversight, regulation, etc. throughout the financial system.  War on Poverty, War on Drugs, War on Terrorism, War on Banksters.  "What we've got here is failure ..."

 

and for those looking for some basics:

1.8 - Standard II-A: Material Nonpublic Information http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-nonpublic-information.asp see also "tipping"
Sat, 03/12/2011 - 20:56 | 1045313 prophet
prophet's picture

duped

Sat, 03/12/2011 - 21:34 | 1045354 mberry8870
mberry8870's picture

 

The SEC might have known:

 

http://www.sec.gov/comments/s7-31-08/s73108-39.pdf

 

Sat, 03/12/2011 - 22:46 | 1045525 long-shorty
long-shorty's picture

This comment letter reads exactly like a press release from Lehman, Enron, Conseco, Allied Capital, or any other terrible company under "attack" from short sellers who have figured out it is a terrible company.

Good companies don't generally find the need to write this sort of thing.

 

 

Sun, 03/13/2011 - 02:42 | 1046063 Howard_Beale
Howard_Beale's picture

Thanks Herb. How's that campaign of yours going on the for profit universities?

Sun, 03/13/2011 - 11:39 | 1046465 long-shorty
long-shorty's picture

Howard, how can you be on the wrong side of every issue????

That's amazing. Do you really think the government paying tens of thousands of dollars per student for people to get an "education" which barely increases their future earnings power is a good use of taxpayer dollars?

Yes, all we need to do to solve our problems in America is to transfer more money from the government to corporations. That will fix everything.

 

Sun, 03/13/2011 - 22:17 | 1048166 Tapeworm
Tapeworm's picture

0.0

 

Sun, 03/13/2011 - 01:03 | 1045929 Bansters-in-my-...
Bansters-in-my- feces's picture

Time to fleece dem Jewzzzz for a change.

Sun, 03/13/2011 - 01:18 | 1045959 vast-dom
vast-dom's picture

Why stop with Jews? OR rather why start with the racism? 

Hey Tyler perhaps it may be time to have a no tolerance for racism policy here? It really cheapens the excellent content and is frankly offensive.

 

Sun, 03/13/2011 - 01:45 | 1045991 Milton Waddams
Milton Waddams's picture

Yeah, and what about news embargoes? Key (sadly, now manipulated) economic data is issued to reporters ahead of the official release time. We all know the fourth estate is an ironclad check on the government so what could possible go wrong? There is no way, no possible fucking way, these reporters could be paid-off or, more likely, blackmailed to breach the embargo.

Sun, 03/13/2011 - 02:29 | 1046046 Occams Aftershave
Occams Aftershave's picture

Interesting that the only insider cases we see on CNBS is the oft-repeated perp walk of Rajaratnam and two other Hindu cronies.   Where is Steve Cohen and congregation perp walk?   Appears to be a bit of racial profiling at the SEC.    From what I've read, what Rajaratnam did compared to what Stevie Cohen's done is like a speeding ticket compared with first-degree murder:   both wrong but an order of magnitude different.  

Sun, 03/13/2011 - 07:53 | 1046236 Kina
Kina's picture

Great post.

ZH telling it like it is. The scum out there must really be hating ZH, revealing their corrupt depravity.

 

Unfortunately none of them are going to be swinging from a rope until the whole thing falls apart. Until then the whole lot of them have each others back, sometimes literally.

Sun, 03/13/2011 - 08:18 | 1046249 Catullus
Catullus's picture

The only thing insider trading laws have done is create an even bigger market for material non-public information.  They are vague and arbitrary and thus you get a whole realm of vague and arbitrary situations that might be illegal.  And they're only illegal if someone can prove their illegal (and willing to prosecute).  Everyone of them is a new spin on "ill-gotten gains". They all read like the script to Wall Street.

But let's say you didn't make this illegal.  You allowed anyone to get whatever information they wanted (without breaking other laws) to do whatever they wanted with that information. Would S.A.C. really exist if you allowed this to happen? So some douchebag likes to make money by finding situations where he feels the market is overvaluing something.  He does a little research and starts his campaign that he's going to short the ever living shit out of this thing.  Why do you listen to him? You might listen to him because he's a market mover and you can ride the coattails. You might think he knows something that someone else doesn't.   But how can you really trust this guy? You can't back up any of his data because it's not public.  What he's attempting to do has unlimited downside risk.  And there's no way to know he's not just lying to you.  

I say it's because you think he has insider non-public information that you go along with him.  You assume that the non-public information is correct or relevent because it's such a risk to obtain it.  If this person is willing to take such a risk, there must be a reward.  Plus the guy has been right in the past, he must be right now.  S.A.C. is the symptom of a law that does the very opposite of what it was intended to do.  The law has in fact created a greater incentive to do the activity.  Drug dealers would make no money if there were no drug laws.  A large number of hedge fund would make no money if there no insider trading laws.

Good reporting nonetheless.  The source documents are why I keep coming here.

Sun, 03/13/2011 - 08:35 | 1046276 Corduroy
Corduroy's picture

One company I worked for achieved a 400% increase in share price and maintained that on an ongoing basis.. all predicated on schmoozing the institutional investors, and no associated change in core business or profits. Oh, did I happen to mention that this all happened the week after the CEO and CFO were replaced by the board / major shareholders

Sun, 03/13/2011 - 11:49 | 1046478 Vendetta
Vendetta's picture

I saw the same thing ... all the usual names (ie: Credit Suisse First Boston plus quite a few others) were players in the IPO and undoubtedly share price runup and then dump.  The CEO and a circle of his insiders initiated the whole scam with about $1.5 to $2 million (CEO was from the investment banking industry) ... walked away while the stock was still at its mid to mid-high point with roughly $40 million plus a golden parachute ... all in the space of a few years.  It was just a greed based crime scene for the entire time I watched it, I couldn't stand it anymore looking for a shred of honest business dealings and I couldn't find any.

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