Hedgefundgate Begins: Numerous Insider Trading Charges Forthcoming

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Sun, 10/18/2009 - 23:22 | 103060 spekulatn
spekulatn's picture

"It looks like I picked the wrong week to stop sniffing glue."

"MARK IT ZERO, DUDE"

Mon, 10/19/2009 - 14:08 | 103552 _Biggs_
_Biggs_'s picture

Striker!

Sun, 10/18/2009 - 23:32 | 103066 Michael
Michael's picture

The national debt clock will cross 12 trillion soon. Maybe by the end of this month.

http://www.usdebtclock.org/

Mon, 10/19/2009 - 02:06 | 103134 Anonymous
Anonymous's picture

That debt clock is a farce. The national debt is $112 trillion when you add in what has been stolen from Social Security and Medicare and are unfunded liabilities.

Sun, 10/18/2009 - 23:45 | 103074 mberry8870
mberry8870's picture

I would be shocked if the SEC really did it's job.

Mon, 10/19/2009 - 00:33 | 103104 Anonymous
Anonymous's picture

I would be shocked I'd they did their job fairly. The SEC is just a political tool for the power of the day. WTF they just started using computers to investigate this shit 2 years ago? Welcome to the 20th fucking century SEC; let us know when you want to join us all in the present day

Mon, 10/19/2009 - 05:49 | 103178 Rusty Shorts
Rusty Shorts's picture

Has anyone seen this ? ...DavidLightman ( aka reinhardt ) calling a market crash on the 19th and 20th Oct 2009.

 

http://www.youtube.com/watch?v=gQETQAW0jZo&feature=sub

Mon, 10/19/2009 - 13:01 | 103478 AN0NYM0US
AN0NYM0US's picture

posted on Mayhem's thread - Marty Zweig made a similar prediction on Friday October 16 (but for a different decade)

http://www.youtube.com/watch?v=2MyToTwag34

Sun, 10/18/2009 - 23:48 | 103077 Anonymous
Anonymous's picture

Just wait. Steve Cohen will be in Israel or Namibia by Halloween.

Mon, 10/19/2009 - 00:03 | 103089 Careless Whisper
Careless Whisper's picture

Less competition for GoldmanSachs (its a bank holding company NOT a hedge fund).

Mon, 10/19/2009 - 01:14 | 103119 Ruth
Ruth's picture

GS gave up their bank holding status

Mon, 10/19/2009 - 01:32 | 103123 Careless Whisper
Careless Whisper's picture

Oh that's right, now they're a "financial holding company" with full access to the zero interest Federal Reserve Bank window.

http://www.foxbusiness.com/story/markets/industries/finance/goldman-sachs-financial-holding-company/

 

Mon, 10/19/2009 - 08:06 | 103197 HEHEHE
HEHEHE's picture

One wonders how much of these sudden indictments are timed to draw attention away from the outrage over Goldman's bonus payments.

Mon, 10/19/2009 - 10:00 | 103234 You Cant Handle...
You Cant Handle the Truth's picture

Everybody should be asking the question:  why are we prosecuting a little fish for getting inside info WHEN GOLDMAN SACHS IS LIKELY MAKING $23 BILLION IN BONUSES FROM INSIDE INFO !!

Mon, 10/19/2009 - 02:10 | 103135 Anonymous
Anonymous's picture

I would urge people to go to YouTube and watch Louis Reykeyser's Wall Street Week on oct 16, 1987 and then on Oct 23, 1987.

Marty Zweig stated on the 16th that he had been thinking collapse and was afraid to say it (and it wasn't going REALLY to happen for 64 hours after the taping) and a woman speaking for the brokerage business said there could be a dip, but things were great.

I think she is a producer now at CNBC...LOL

Mon, 10/19/2009 - 13:02 | 103480 AN0NYM0US
AN0NYM0US's picture

I just posted the link above

Mon, 10/19/2009 - 00:05 | 103090 defender
defender's picture

"The SEC began using computer software about two years ago"

Sounds about right to me...

Mon, 10/19/2009 - 00:10 | 103093 JohnKing
JohnKing's picture

Sounds like they re-purposed some HFT stuff.

Mon, 10/19/2009 - 10:02 | 103236 You Cant Handle...
You Cant Handle the Truth's picture

Shocking revelations this week:  The SEC only recently discovered how to get and use wiretaps and computer analysis.

 

Mon, 10/19/2009 - 10:28 | 103266 Anonymous
Anonymous's picture

Thanks. A good laugh to start the week.

Mon, 10/19/2009 - 13:55 | 103530 cougar_w
cougar_w's picture

It took them all this time to find a FORTRAN IV programmer who could code to their new IBM 7090 mainframe.

That, and sourcing punch cards.

But they're on it now. Oh yeah.

cougar

Mon, 10/19/2009 - 00:10 | 103091 Anonymous
Anonymous's picture

Cramer's next...

Mon, 10/19/2009 - 06:24 | 103182 Jendrzejczyk
Jendrzejczyk's picture

Perhaps the authorities will "Deep Capture" that perfect (G)assbag.

Mon, 10/19/2009 - 00:21 | 103099 FischerBlack
FischerBlack's picture

Am I the only one who thinks insider trading bans are stupid? The bans prevent asset prices from moving to their true value at the time that value changes. When is this ever a good idea? If everyone could just trade based on what they know, prices and price movements would trend smoothly ahead of major developments. They would reflect high-quality, important information much sooner. And with all the insiders scrambling to trade on their inside information, the profit-potential of that information to any one insider is degraded significantly. And it might even bring down the average pay of corporate insiders as it would be expected that part of their compensation will be tradeable insider information. I don't know, it just seems there are many reasons to consider getting rid of insider trading bans altogether. 

Mon, 10/19/2009 - 00:33 | 103106 JohnKing
JohnKing's picture

I'm quite sure they got rid of insider trading bans some time ago. Things have gone very well ever since.

Please don't tell me about Martha Stewart or the occasional ding on some low-rung peon. Insider trading goes on unabated for the white shoe boys, they just call it "networking".

Mon, 10/19/2009 - 00:52 | 103111 Anonymous
Anonymous's picture

i am certainly open to hearing argumentation to
both sides as i believe that insider trading is
the least of the problems in our financial system....
it is a vast distraction to the more insidious crimes
such as intentionally misrating securities to dupe
buyers; failing to regulate insolvent banks and
financial practices before they caused problems;
funneling money through aig to pay off goldman
sachs; funding bankrupt businesses; suspending
mark to market....etc etc....

the real problems are not being addressed but it
sure makes great theater to trot out the insider
trading spectacle to make it look like we are
doing something....

Mon, 10/19/2009 - 00:58 | 103113 Howard_Beale
Howard_Beale's picture

You cannot be serious...your premise is ridiculous. Perhaps you knew about 9/11 and shorted the airlines? Get real. Insider trading bans are not about price discovery. They are about everyone getting the same info at the same time and then price discovery occurs. Just watch after hours on earnings information--that's enough to show who wins and loses in the casino. If I know that XXX co is going down from the CEO of XXX, then I have knowledge that puts me ahead of the pack. It's unfair and wrong.

Mon, 10/19/2009 - 01:27 | 103124 Anonymous
Anonymous's picture

you haven't shown why it is unfair and wrong....

i am not sure if i agree with the op's point
but i don't think the answer is obvious one
way or the other....

i agree that price discovery is not the issue but
if it is not, what difference does sequence or
timing of information disclosure make?

what right does anyone have to information timing?

i am very open to a defense of insider trading
bans but i haven't seen it here....

Mon, 10/19/2009 - 08:01 | 103195 JohnKing
JohnKing's picture

Sure Howard that sounds ok, are you suggesting a public information exchange? Perhaps all musings from corporate land be routed through one wire? Of course you would still have those who would get in front of that and game it which leads us back to insider trading bans.

Mon, 10/19/2009 - 02:20 | 103140 Anonymous
Anonymous's picture

>>Am I the only one who thinks insider trading bans are stupid?<<

yes..what a STUPID comment.

I was a floor trader on Wall Streeet for over 20 years and insider knowldge of orders lined the pockets of traders and regulatory agencies did NOTHING of substance to stop what was widespread.

I saw Najarian introduce "Mr Top Step" on Friday as the top step is where the guys trading more volume stand. He openly stated how the stops were run above the S&P and how they are now below.

"They are now below"? How about hauling Mr. Top Step before a growp of CFTC and SEC lawyers, deposing him, and asking him how the &*%$ he knows where the stops are? It is illegal to divulge one's orders. Find me a case where someone was ever charged. How hard was it to learn of them? Okay...here's how it goes:

"How, the wife, how are the kids, how's your golf game, where are your stops?"

You people not in the business have no idea how corrupt Wall Street is.

Read "The Quiet Coup" in the May Atlantic Monthly to see how powerful they have become down there.

With a little luck, this is going to lead right Paulson, Geithner, and GS and THEN, the mkt will go to the value it belongs at and we might avoid a revolution because with 20% unemployment, people are ready to lynch brokers!

Mon, 10/19/2009 - 09:05 | 103208 JohnKing
JohnKing's picture

The Najarians should be in jail. They profit from EVERY Recco they make on CNBC, they are MMs for their own touts. Talk about stealing in broad daylight, these guys take the cake.

Mon, 10/19/2009 - 12:03 | 103399 Anonymous
Anonymous's picture

Thx for the 'insider information' on insider information.

At least once the proles bet it straight from floor.

Mon, 10/19/2009 - 00:22 | 103100 Anonymous
Anonymous's picture

Until I see big names at big firms fall for the bullshit that got us to this point of underwater homes, epic unemployment, and a Fischer Price pretend market, all these hedgefund charges look like is Goldman Sachs aiming it's gun (the SEC) at the heads of it's competition.

Mon, 10/19/2009 - 00:59 | 103115 I am a Man I am...
I am a Man I am Forty's picture

That's what it looks like to me.

Mon, 10/19/2009 - 09:12 | 103206 docj
docj's picture

+1

Head of nail, hammer, some assembly required.

Bring on the show-trials.  Let's make sure a couple of hedge-fund pirates are going to get strung from the yardarm while the admirals of the pirate fleet (GS, JPM, Citi, etc. – you know, the TooBigToFail Armada) will be given free sailing to continue to rape and pillage the taxpayer in broad daylight.  Bread and circuses.

Awesome.

 

Mon, 10/19/2009 - 14:04 | 103542 cougar_w
cougar_w's picture

Welcome to the updated release of "The Count of Monte Cristo", now set on Wall Street instead of in 18th century Europe.

For the attention-deficit crowd: Everyone stabs everyone else. Everyone dies. It takes 50 years to work itself out. And only the Devil laughs.

cougar

Mon, 10/19/2009 - 00:27 | 103102 Anonymous
Anonymous's picture

"'If you’re going to shoot the king, you better shoot to kill,' said Bradley Bennett[...]"

In other news, Omar Little sues for copyright infringement.

Mon, 10/19/2009 - 00:33 | 103105 Anonymous
Anonymous's picture

Go ahead and pull this thread... because it's connected to the entire ball of yarn.

Mon, 10/19/2009 - 10:08 | 103242 You Cant Handle...
You Cant Handle the Truth's picture

No, they'll pull this thread a little, cut it off and make a sweater, and then the media will spend months telling us how the sweater makers have made the only sweater that -- oh hey, look over there -- a shiny object.

Mon, 10/19/2009 - 00:38 | 103109 Anonymous
Anonymous's picture

Who is Raj's prime broker?

Mon, 10/19/2009 - 01:55 | 103130 I am the mole
I am the mole's picture

You're on to something there...

Mon, 10/19/2009 - 03:23 | 103147 Unscarred
Unscarred's picture

+10000

Mon, 10/19/2009 - 15:05 | 103615 Anonymous
Anonymous's picture

The better question is who isn't Raj's prime broker.

Mon, 10/19/2009 - 15:08 | 103618 Anonymous
Anonymous's picture

The better question is who isn't Raj's prime broker.

Mon, 10/19/2009 - 00:54 | 103112 Michael
Michael's picture

The real estate news seems to be getting worse. It looks like the second tsunami wave of foreclosures is hitting. Someone should let those crazy Californians know there are some screaming deals over here. I here they got bidding wars again over there.

Foreclosure crisis far from over for South Florida

http://www.miamiherald.com/business/story/1288053.html

 

Mon, 10/19/2009 - 01:21 | 103121 Anonymous
Anonymous's picture

The guys who thought they were buying at the bottom are the next to be slaughtered. When prices take the next leg down, there will likely be another set of suckers.

Lather. Rinse. Repeat.

Mon, 10/19/2009 - 14:07 | 103549 cougar_w
cougar_w's picture

Repeat yes.

But this time your hair all falls out.

And there is no next time.

Mon, 10/19/2009 - 01:33 | 103125 Anonymous
Anonymous's picture

This is a racist attack on a humble immigrant who came from the slums of Ceylon and made something wonderful of himself.

I'm ashamed for this vicious and unwarranted attack on an immigrant.

There, it's been said.

Now string the bum up.

Mon, 10/19/2009 - 02:15 | 103138 Anonymous
Anonymous's picture

I don't know what to make of this. There are closed 'networks' that are very restrictive of who they admit - alumni of a specific dorm in a specific college, for example. The purpose is pretty much for leaking specific trading tips for mutual benefit. Some of the dumber ones even used to run as private yahoo groups during the tech bubble, but I am sure there are many more that are off the electronic grid.

The SEC can only go after the big hedge funds because they are more likely to leave a trail. The smaller ones are more decentralized and harder to crack because the only way to get in would be to time-travel back 20 years and stay in that dorm in college...

Mon, 10/19/2009 - 02:16 | 103139 MsCreant
MsCreant's picture

"whole plethora of hedge fund bosses simply picked up and left as soon as the Rajmahal news broke on Friday..."

Comment 1.

Kinda like roaches if your place is infested and you turn on the light.

Comment 2.

a) I bet there are folks "running" who are not on anyone's list.

b) I wonder if someone is watching to see who runs?

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