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Porsche Headquarters Raided For Stock Manipulation Investigation
The world's formerly largest hedge fund, which had a luxury car maker subsidiary is about to meet its regulator maker, the BaFIN . Only took them about a year. Which is still one tenth the lag demonstrated by their US counterparts. From Bloomberg:
Porsche SE, the German sports-car
maker being bought by Volkswagen AG, was raided by German
prosecutors in an investigation of possible violations of
securities law and market manipulation.
Officials seized documents from the company’s Stuttgart
office this morning, Porsche said in a statement. The carmaker
said it rejects the allegations and is fully cooperating and
supporting authorities.
Wiedeking and Haerter “have declared full readiness to
cooperate” with prosecutors, Porsche spokesman Frank Gaube said
in an interview today. The two left the company last month.
“Based on evidence provided by Bafin, we have opened a
preliminary investigation into suspected market manipulation and
unauthorized leaks of insider information,” Claudia Krauth, a
spokeswoman for the prosecutor’s office, said by phone,
declining to name individuals under investigation.
One wonders if the shorts who lost a mint in October will get to recoup anything as a result of this, or will they merely get allocated a few hundred billion in the upcoming Treasury auctions below cost so they can flip them to the witless indirects.
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"One wonders if the shorts who lost a mint in October will get to recoup anything as a result of this..."
hedgies vs. hedgies.
Bit off topic, but who knew a Fitch downgrade would have some much juice. 8 European bank preferreds taking it on the chin after downgrade
http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=ING%3AUS&sid=amz_...
Cramer was pitching prefs of Eurobanks. a
Still no mention of a higher debt than reported on their balance sheet. So the "perfect engneering" company is in the stock business nowadays,so the question is how many more companies are like that? and the more important question is:why people are forced to participate into that jungle through their retirement plans?
When are they going to raid the NY Fed offices? I know, never, as long as market is up.
I think actually what happened is the NY Fed needed new Porches
haha
Let's see... if the German-EU regulators treat their unions with the same reverance as our current administration this is what I see happening:
1. non-Pension stockholders screwed.
2. Prosche management screwed.
3. Porsche pension beneficiaries (workers) made whole.
TD - the only disagreement I have with you is that the US would have reponded very quickly to THIS stock manipulation-- assumming that the UAW had a vested interest at stake.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Too late to "recoup" anything for one prominent short seller of last Fall, Adolf Merckle, who gambled away a sizable chunk of his family fortune shorting VW, lost billions in the Porsche-orchestrated squeeze and ended up jumping in front of a train not long afterward. In some places driving a person to commit suicide is considered a criminal offense, but apparently not in the stock markets.
It's thus fittingly ironic that Porsche leveraged themselves into effective insolvency in their attempt to buy VW and ended up being the buy-ee instead, and VW shares getting hammered as a result of the ensuing shotgun wedding. Merckle was right - VW *was* way overvalued ... but he alas isn't around to enjoy a deserved hearty laugh at Porsche's expense.
So, on behalf of the late Mr. Merckle (whatever you may think of his gambling habits), I'd like to offer this heartfelt "Fuck you, you market-manipulating scumbags" to the folks at Porsche who brought you last Fall's short squeeze. I hope you feel right proud of yourselves, and enjoy being on the receiving end of the "wholly owned subsidiary" thing.
Couldn't agree more.
Who remembers the day late last fall when MS went from 15 to 7 and then back to 15; how many $ traded hands twice that day?
your crew of fighters has gathered an audience of scrutinizers. Congratulations! The fifth wheel of government sees your exposition of the machine's foibles and attacks you to minimize your effects, but in the current climate, the plebeians read you in fear, and the patricians read you with malice. Your anonymity combined with your message scares them. Keep up the good work.
http://www.nypost.com/seven/08212009/business/blogger_may_have_a_past_18...