Merrill Gets $10 Million Fee For Commingling Prop And Flow Traders And Frontrunning Clients

Tyler Durden's picture

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Malcolm Tucker's picture


MUST SEE VIDEO of an Egyptian protester stand up to a water cannon truck, ALONE, and getting blasted in the face!!!

Reminiscent of "tank man" in Tienanmen Sqaure! So inspiring!

http://fedupmontrealer.blogspot.com/2011/01/egypt-boiling-over.html

In the same link there is another video of a badly beaten police officer being carried to an ambulance

Sudden Debt's picture

All I could think off when I watched this was...

 

FUCK SKIING IN MARCH!! WE'RE BOOKING A NILE CRUISE!!!

I BET THE PRICES WILL DROP BIGTIME!!

 

DISCOUNTS BITCHEZ!!!!

 

JW n FL's picture

Thats funny when I was watching it... all I could think of was, "why doesnt he have a thump gun?"

Sudden Debt's picture

10 million...

they must be shaking right now...

 

How manny billions did they make hustling those chumps again?

Sarah Conner's picture

BofA couldn't have made two better acquisitions than Countrywide and Merrill Lynch...

Sudden Debt's picture

It's the first time I bought puts on a stock that was 1 cent away from it's top before it crashed :)

PUTS ARE NOW UP 265%!!!

 

I'M SO HAPPY I COULD CRY :)

 

It's like watching while the Titanic is sinking, and I'm the only one that made it in a lifeboat WITH A HD CAMERA TO FILM IT ALL AND KNOWING I'LL BE ABLE TO SELL THE TAPE FOR A LOT OF MONEY WHILE THE REST OF THE IDIOTS ARE STILL CLAPPING FOR THE BAND THAT KEEPS ON PLAYING!!!

topcallingtroll's picture

Sneaky boogers arent they?

Cognitive Dissonance's picture

The reason we bring it up is that once again we seem to have been just a year ahead of the curve.

Tyler,

Just remember that when you're one step ahead of the herd you're considered a genius. When you are two steps ahead, as Zero Hedge has always been, you're considered lunatic fringe.........until everyone jumps on the bandwagon that is.

I hope there's more room on the ZH server because I suspect it's going to get even more crowded around here very soon.

Overpowered By Funk's picture

Fooking Wanking Bankers!

gpsnodgrass@cox.net's picture

We must have faith in our financial companies. The future of their bonuses depends upon us.

DarAdder's picture

While Merrill told clients their order information would be used on a need-to-know basis, proprietary traders got information and used it to place trades on Merrill’s behalf after executing the customer orders, according to the statement"

'After' obviously being a euphemism for 'before'.

 

Rainman's picture

Merrill placed its own orders after executing the customer's orders...??

Hahaha....if the SEC said that, it must be true. Okie-dokie.

TruthInSunshine's picture

That's soooooooo Merrill Lynch.

Iam Rich's picture

NICE....I want to front run!

Yen Cross's picture

 Ahhh Front Running! Every Sunday @ 2:00 P.M. WCT I get front run. Yes those very sparce and also known as Ill-liquid Asian markets open. Gaps and all! I know front running well! I feel for you EQUITES traders. Really I do.

tellsometruth's picture

This is why I have been coming here for a long time... ZH has the moxie to put it out there

jmoney's picture

It's even worse that you think (or write about here).  On many credit trading floors you have desks that are ostensibly client-facing operations taking big prop positions at the same time (many distressed desks do this).  The information is all comingled, but I would venture to guess the profits from the prop stuff far outweigh the P&L from crossing customer orders.  The size of these bets goes well-beyond "providing liquidity".  Yes, these desks do provide liquidity, but they also take prop positions that are certainly informed by what they see on the client side.

blind squirrel's picture

After 10 yrs on the buyside, I have lots of firsthand experience of this sort of front running (and picking off stops in illiquid market hours).  Hell, I expect it. But... doesn't mean I like it or approve.

The Street seems to attract greasy, self-dealing, liar types.

Byte Me's picture

The justification for this criminal act is surreal: everyone was doing it.

Maybe if everyone burnt a banker they'd have no problem with that either since everyone would be doing it?

maneco's picture

Looks like crime has paid once again! Why can't they send anyone to jail? 

tellsometruth's picture

"Gosh! Was Madoff not enough for you!"

-gov

Downtoolong's picture

When a large investment banking firm is running a proprietary trading operation anywhere it ultimately has only one client - it's them.

 

Gannic's picture

I used to work at Goldman's in the early to mid part of last decade in the FICC group in London....

The prop desk sat on the floor in a corner, and would regularly wander over to the various trading desks. As such client business was never a secret to them. One PMD was even more than happy to wander through the chinese wall to the IBD side, get information on deal flow then cheerfully disseminate to the prop guys.