SEC Probing 3Com Option Trades
The SEC has no problem being all over what is handed to them on a silver platter. As to the pyramid scheme that the market now is, they'll just leave that one alone. " Bullish bets on 3Com Corp. options four hours before Hewlett-Packard Co.’s bid for the maker of computer-networking equipment are being investigated by regulators, according to a person familiar with the matter."
The chances this was an innocent calendar spread, or a trade masked as one, are promptly going to zero.
The Securities and Exchange Commission is examining whether someone used advance knowledge of Hewlett’s offer to illegally profit from the surge in 3Com’s stock when the deal was announced, according to the person, who declined to be identified because the inquiry isn’t public.
“It screams insider trading to the SEC,” said Peter Henning, a law professor at Wayne State University in Detroit and former SEC attorney.
Way to earn that $1 billion budget SEC. $50,000 booty split TBD.
(1 vote)
on Mon, 11/16/2009 - 10:14
#131728
Who's the lead investigator - Stevie Wonder?
on Mon, 11/16/2009 - 10:18
#131734
Another SEC "investigation"? The SEC could not manage their bowel movements if their assholes did not do it for them.
Just like the so-called SILVER investigation at the CFTC.
When they have Dimon, Blankfein, Paulson, Geithner, et al in CUFFS, I just MIGHT start to believe something.
on Mon, 11/16/2009 - 18:38
#132487
SEC investigate silver? That is also handed to them yet.... Am visiting China right now and while they speak in hushed tones, the USA's truth is known and the dollar is not Happy Lucky Fun Time. When even the educated Chinese students (rightly) laugh right at Turbo Timmy during his visit here...
Got gold and silver?
PS: Amazing amount of new cars here in Beijing! traffic jam almost all day long even though each car can only drive every other day to reduce traffic(!). Chinese are buying more new cars than USA nowadays.
on Mon, 11/16/2009 - 10:28
#131738
The SEC got the go-ahead from teh big banx. Free Sergey!
on Mon, 11/16/2009 - 11:29
#131841
I just wonder why the SEC doesn't mandate the clawback of all options or stock trades made within a day of a major merger or acquisition. That would make it harder for these kinds of shenanigans to occur.
on Mon, 11/16/2009 - 11:32
#131843
The customer bought calls in both months (it was not a calender spread) and agreed to have the trade taken down after the news came out.
He likely was a cheater who decided to give the money back after realizing he was caught. The real winner is the firm who sold the options and bought stock against it only to have the losing side of the trade canceled.
on Mon, 11/16/2009 - 12:50
#131976
Do you have a link to where this was reported? I missed it.
Thank you
on Mon, 11/16/2009 - 11:37
#131850
The SEC does, at least, have to pretend, sort of, to have a job to do.
on Mon, 11/16/2009 - 12:30
#131947
They got a bigger budget because they helped the banks cook the books.
on Mon, 11/16/2009 - 12:12
#131918
watch them "catch" whoever did it only to see their case fall apart on technicalities or crappy evidence
on Mon, 11/16/2009 - 12:31
#131948
Buzzy Krongard and OJ-esque probabilities surrounding 9/11 and front month airline equity options ... nah !
$780 bucks for Hawaiian ... now that is juicy !!
Thanks SEC !!!
Give Patty Byrne 1% of their annual budget and see how many Steinhardts get nabbed.
on Wed, 01/06/2010 - 15:45
#184805
Trade-offs must be made in enforcement activities. Martha Stewart was a high value target. The listers and buyers of the Bear Stearns puts, not so much.
My money is on Geithner as Bear buyer, he fits the profile.
Lee S.
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