- advertisements -
conflict of interest?
I buy a shit stock and then sell it to the mutual fund that you invested in (and that I administer and "manage").
"There is no truth. There is only perception" ~Gustave Flaubert
Mack is a turd.
Gasbagarino is a turd.
Why? Because he's been able to make a fortune on insider trading without getting caught.
That was easy.
I'm afraid I don't quite get how one would separate prop trading from market making. Market makers (Nasdaq) and specs (NYSE, certainly AMEX) actively take positions for their own accounts anyway. How do you police that without seriously affecting liquidity? I don't understand why they can't just bring back Glass-Steagall. It seems that would be a much cleaner and well proven way of going about it.
Because..." that would be a much cleaner and well proven way of going about it".
First rule of Fortune accumulation thru stealing:
In chaos and ignorance (the other guy's) is great profit.
I think we know the answer. Prop desks of TBTF banks cannot actually lose money, though sometimes they have to wait a few weeks for the taxpayer check to clear when struck by temporary and unforeseeable misfortunes (which the general trading world refers to as "losses").
Nice work if you can get it. And the supreme irony? From my own experience as a WS trader, I have seen folks who blow up still get a bonus that would be the envy of even upper middle class Americans. Hubler is not an exception.
Likewise in the HF world. There are folks who have blown up multiple times, even more than John Merriwether, but can still raise enough new money in new funds so that just the 1-2% management fee helps them keep current on the Greenwich home. Indeed, when the accumulated losses fall to such a level that bringing the fund back to even---and getting a chance for performance fees again---is a remote or difficult possibility, the "smart" move is to shut down, move across the street, start a new fund, and set the performance meter back to zero.
Of this latter oddity I have far less of a problem than I do with TBTF banks (and HF's disguised as Bank Holding Companies), because the taxpayer is not on the hook for the real HF losses. If customers are willing to place their funds with a pathological exploder, so be it. Fools and their money....
ucvhost is a leading web site hosting service provider that is known to provide reliable and affordable hosting packages to customers. The company believes in providing absolute and superior control to the customer as well as complete security and flexibility through its many packages. cheap vps Moreover, the company provides technical support as well as customer service 24x7, in order to enable its customers to easily upgrade their software, install it or even solve their problems. ucvhost offers the following different packages to its customers
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Advertise With Us
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
How to report offensive comments
Notice on Racial Discrimination.