For The SEC's Viewing Pleasure: NYB Stock And Option Chart
As we speculated on Friday, whoever bought those 7,500 calls on inside information ahead of the NYB assumption of massive taxpayer subsidies in the form of the AmTrust's $2 billion "failed bank" consideration via the FDIC, is now much richer. And we demand a full investigation into who and why i) leaked this information and ii) profited from it. With the stock up 9%, any inactivity by Mary Schapiro is equivalent to her spitting in the face of anyone still caring about a free and fair market.
With 9,500 of the Dec 12 puts trading on 20 contract open interest, this is a blatant attempt to cover the tracks of whoever made a massive profit thanks to material inside information, which would have potentially originated from the FDIC itself.
(4 votes)
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on Mon, 12/07/2009 - 12:09
#155368
If the FDIC leaked the info, then what? a fine? hehe. Sheila: "we can never run out of money".
on Mon, 12/07/2009 - 12:10
#155371
"why i) leaked" why i leaked? OH! you meant one not "I".
on Mon, 12/07/2009 - 12:11
#155372
ZH, please stay on top of this. Someone in the Friday night thread speculated that it could have been the FDIC itself trying to make a quick buck because NYB issued warrants to the FDIC (if I'm remembering that correctly). In other words, the FDIC was not a disinterested party if NYB's stock were to rise. Major conflict of interest.
on Mon, 12/07/2009 - 12:22
#155396
Here it is, submitted by "Lonewar" last Friday night on the Shapiro please resign thread.
http://www.zerohedge.com/article/mary-schapiro-must-immediately-investigate-fdics-confidential-information-leak-another-blata#comment-153571
on Mon, 12/07/2009 - 14:36
#155627
If it is the SEC or FDIC ramping the stock, you would think NYB and/or its shareholders would be less than pleased. The release indicates that the value of the equity appreciation instrument will be recorded as a charge against earnings. The higher NYB's stock price during the measurement period, the greater the charge and the more NYB paid overall. Of course, that assumes that the face value of the deal represented an actual good faith number (i.e., the absolute maximum NYB would pay). Management could have, for example, "underpaid" on the other aspects of the deal knowing that the ramp up in share price would increase the overall cost of the deal. Doing it this way (as opposed to a more transparent pricing structure) may bring the overall cost within the acceptable parameters for NYB, but NYB would also get a bump-up in share price (likely good if management gets bonuses based on stock performance or if the company plans to issue more equity). Negotiating to the final number up front would not have the same collateral benefit. But this is all speculation intended for discussion purposes only.
on Mon, 12/07/2009 - 12:13
#155375
Since the inmates (bankers) are running the prison (Gov't), expecting anything but silence from the SEC is extremely wishful thinking.
on Mon, 12/07/2009 - 12:17
#155386
Ah...now you demand well that should do it!
tin foil hats for everybody....
on Mon, 12/07/2009 - 12:21
#155393
ZH should also look at the spike in short interest in TCW's TSI fund in the month preceding the announcement of firing Gundlach.
on Mon, 12/07/2009 - 12:27
#155402
Does it really matter anymore? Wall street is clearly breaking all the rules and there is no one to stop them. In a couple of years, the stock market will probaly be completly traded on Autopilot. Rules, laws and the constitution are all being ignored.
on Mon, 12/07/2009 - 12:34
#155416
silly goose.....why all the honking? ...ain't nothin' gonna happen here...don't you know they're laughing at you?
on Mon, 12/07/2009 - 13:09
#155478
hm. listen carefully...it might just be nervous laughter.
on Mon, 12/07/2009 - 13:09
#155479
So that's what that stuff is that I keep wiping off of my face. Thanks Tyler!
on Mon, 12/07/2009 - 12:42
#155427
Yes, please keep this up and let's see if we can get it into the mainstream media like HFT. If this goes viral, I will bet the perps will be revealed instantly.
on Mon, 12/07/2009 - 12:43
#155428
Yes, please keep this up and let's see if we can get it into the mainstream media like HFT. If this goes viral, I will bet the perps will be revealed instantly.
on Mon, 12/07/2009 - 12:50
#155434
the fed removing liquidity in practice -
on Mon, 12/07/2009 - 13:03
#155463
All the focus on who bought them, but who the hell sold them? With volume taking such a big jump, who would be dumb enough to take the other side? Said the seller - "This looks like easy money selling some premium to an idiot who wants to buy way too many worthless options...OH CRAP I'm the IDIOT to sell them..." Hopefully no widows and orphans got robbed on this one...
on Mon, 12/07/2009 - 13:04
#155464
Bloomberg TV ran a story on this spike this morning ~7:15. I caught the lead-in but had to run to work.
on Mon, 12/07/2009 - 13:18
#155496
No wonder these clowns are able to repay their TARP obligations so quickly. Can I have a pair of loaded dice and a $10 million credit limit at the tables please?
on Mon, 12/07/2009 - 15:04
#155678
Bingo.
The force is strong with this one.
on Mon, 12/07/2009 - 13:21
#155499
Thanks, Tyler and all those who posted info about this in the comments. Information like this is one of the primary reasons I read ZH regularly.
on Mon, 12/07/2009 - 13:26
#155513
Maybe Shelia is the one who did it!!!!
Her FDIC bailout fund is about to run out of money, the US Congress has yet to raise the debt ceiling, maybe she was just running out of other options????
on Mon, 12/07/2009 - 13:42
#155547
3400 vol at the dec 12, they sold 1/3 already.
on Mon, 12/07/2009 - 14:58
#155671
Will the next administration prosecute?
on Mon, 12/07/2009 - 17:44
#155888
How did the petition on the debt ceiling fare? Maybe it´s time to do another one straight to the Justice Dept.