Schapiro Forces Perot Insider Trader To Refund $8.6 Million Profits, Still No Announcement On NYB Insider Trading CaseSubmitted by Tyler Durden on 01/06/2010 11:00 -0500
The SEC, which had its Dell-Perot insider trading case handed to them by various blogs, has forced the disgorgement of $8.6 million in profits from the perpetrator Reza Saleh. And while this action is completely insufficient to warrant the continued abuse of taxpayer money by the SEC, and its ongoing worthless existence, we still demand that the SEC immediately initiate an investigation into the blatant insider trading, most likely facilitated by a person at the FDIC, in regard to the New York Community Bancorp taxpayer funded acquisition of recently defunct AmTrust Bank. We will keep reminding the Chairwoman of her grotesque failing as anything but a bureaucrat who managed to milk FINRA for so much more than she is worth ($3.3 million to be precise, and other insane pension benefits), and is currently merely a figurehead, whose sole responsibility is to let the Ken Lewises off the hook with nothing but a handslap.
FINRA Initiates Probe Into Goldman's "Trading Huddle" And Comparable Practices By Other Wall Street FirmsSubmitted by Tyler Durden on 12/17/2009 18:53 -0500
Could it be that the regulators are finally set on doing the one thing they are paid to do, i.e. regulatoring? Perhaps, especially when they are presented with all the data on a silver platter, as the WSJ did some time ago. The same WSJ reports that FINRA has now started a probe into the practice known as "trading huddles" which is merely another phrase for providing the best, most actionable data to one's preferential clients, and also a very politically correct and polite way of allegedly endorsing front-running.
A report by Bloomberg finally recaps the flagrantly obvious insider trading in NYB stocks and options, presented first here on Zero Hedge.
Mary Schapiro Must Immediately Investigate The FDIC's Confidential Information Leak In Another Blatant Insider Trading Case, Then ResignSubmitted by Tyler Durden on 12/04/2009 20:39 -0500
The degree of insider trading in this market is getting ridiculous. And the strangest thing is those who are executing on blatantly obvious material, non-public insider information, are no longer concerned the least bit about getting caught as they realize that the "mighty" SEC will do nothing against them, courtesy of the example the SEC has set by finding absolutely nobody "responsible" (except, of course, the regulator's own future employers who thus get immunity from prosecution) for the greatest market heist in history in which over $5 trillion has been transferred from the middle class to the Wall Street oligarchy (future providers of paychecks for SEC staffers).
Today's grotesque example of the SEC's futility to act as even a modest deterrent to insider trading activity: New York Community Bancorp (which, just so happens, is a $602 million recipient of TLGP debt), whose stock surged in the final minutes of trading for reasons (then) unknown. As reader QevolveQ pointed out at 5:30 pm, the activity in both the stock and the calls of the company was many standard deviations away from average and raised major red flags. Those questions were quickly put to rest when it became known at 6:33 pm that NYB would in fact receive FDIC subsidies to acquire newly failed AmTrust Bank in a transaction that would be "immediately accretive to earnings."
Total Lunacy: Mary Schapiro Made $3.3 Million In 2008, Perks Also Include Car Service, Club Fees And Full Expense CompSubmitted by Tyler Durden on 12/04/2009 15:51 -0500
We will post this without much commentary as the probability we would otherwise be sued for grossly indecent language in a public venue as well as libel and slander is very, very high.
Senator Dodd has Introduced a Sweeping Financial Reform Bill. Please Help Me Figure Out If Its Good or Bad, and What Its MissingSubmitted by George Washington on 11/10/2009 14:51 -0500
Is this bill good or bad? What's it missing?
If you have been wondering why Rentec, GETCO, Citadel and Highbridge are sweating these days, it is because the SEC is preparing to finally remove the rock they all crawl under as they execute millions of trades each and every second. As Traders Magazine reports, "the Securities and Exchange Commission, in an effort to get more information about high-frequency trading, plans to dust off an old statute that allows it to require large traders to "self-identify" themselves. As part of the plan, the SEC will propose a rule implementing a large trader reporting system for non-broker-dealers." So if you see any particularly abnormal market behavior these days, don't be surprised if it is simply due to Jimbo and Kenny doing all the can to pocket last any minute revenue before the hammer comes crashing down.
Riddle me this. An industry gets into trouble due to chasing fads, loading up on debt and overpaying for property. Many participants in said industry flirt with insolvency due to difficulty meeting debt service and asset values that have dropped below liabilities. This industry has been gifted with a special...
Dick Bove's Instamath Gets Him In Trouble, Will No Longer Grace TVs With "Instant Analysis" PresenceSubmitted by Tyler Durden on 10/22/2009 12:35 -0500
As Zero Hedge pointed out first, yesterday Dick Bove performed what should be a FINRA or SEC punishable act, by first pumping the stock of Wells Fargo live on pumpathon central CNBC, and subsequently downgrading it, causing a major market selloff. Today, Bove tries to backtrack and explains the foolishness of his actions, while telling all those stupid enough to follow his recommendations that he will no longer be providing "immediate earnings commentary" (whatever the hell that is) on air. If his "less than immediate commentary," such as his Buy call on Lehman weeks before the bank filed for bankruptcy, is any indication, perhaps Mr. Bove should consider dropping the "commentary" business period.
"As the Commission considers the treatment of ATSs, at this week’s open meeting and beyond, I respectfully ask that you consider the proposals outlined below to ensure that ATSs, while continuing to provide beneficial competition to registered exchanges that directly and indirectly benefits retail investors, do not undermine the fairness, transparency and integrity in our markets that the Commission has worked for so many decades to foster." - Sen. Chuck Schumer
Study Confirms Bank Prop Desks Sell Ahead Of Own Research Analyst Downgrades, Finds Recurring Rule 2110-4 ViolationsSubmitted by Tyler Durden on 10/07/2009 09:07 -0500
A recent article by the WSJ about the "Goldman huddle" sparked anger resulting from selective and advance disclosure by the firm to its choice clients about so-called trading recommendations. Yet a much more provocative study published in the October edition of the Journal Of Finance by Jennifer Juergens and Laura Lindsey titled "Getting Out Early: An Analysis of Market Making Activity at the Recommending Analyst's Firm" stands to create much more trouble for Wall Street firms if proven true, and is yet another stab at what little is left of the reputation of already disgraced regulators such as FINRA, who are now seemingly unable able to even police existing rules and regulations. Furthermore, the study is additional proof that bank prop trading needs to be, if not completely separated, than to be contained exclusively from not just client flow trading, but from internal research dissemination, and has to be much more closely regulated.
We know you are busy, we also know you are hell bent on intercepting IOI manipulation as per Mr. Jon Kroeper's recent media appearances. Which is why we kindly request that you get back to us at your earliest convenience with information on how many of the IOIs disclosed below are, in fact, "natural." We will make this a recurring topic on Zero Hedge until such time as you respond to our information request. You can contact us at firstname.lastname@example.org
We appreciate your prompt attention to the matter
Zero Hedge staff.
One of Zero Hedge's recurring concerns with market abuse has been the concept of manipulated natural Indications of Interest, or IOIs, a topic which readers can catch up on here and here. And yes, absent feedback from regulators this could have added to the ever increasing list of conspiracy theories broached by Zero Hedge. Yet ironically shortly after Zero Hedge first posted on this, FINRA came out with the following regulatory notice 09-28 from May 2009, in which the regulator "reminded firms of their obligation to provide accurate information in disseminating indications of interest."
Say you are a hedge fund and you have been unlucky enough to have bought GGP bonds or other GUCs in the biggest clusterfuck of a CRE bankruptcy in history: how will you know what the hell is going on in the deal that has more moving parts it would make Level 99 of The Incredible Machine look tame in contrast? The easiest way is by getting access to disseminated inside information. But how will you "ascertain" that your traders will not take advantage of this material, insider information, a process that would immediately hold them liable for civil and criminal charges? By erecting internal "screening walls" of course, that are so completely impenetrable, that you traders will never be able to have drinks with you and where, just after your 8th Jager bomb, you will never disclose just which maturity it is that traders needs to nudge or which GUC they need to "start opportunistically unwinding if you know what i mean, wink, wink."
- Former PPT member Kevin Warsh voices in: The Fed's job is only half over (WSJ)
- Still waiting for the inventory bounce: durable good orders drop 2.4% in August, worst since January (Bloomberg)
- Mattress-maker Simmons finally throws in the towel, to file Chapter 11 (AP)
- Investors don't feel like taking chances with stocks, spending (USA Today)
- Battle brews over unused TARP cash (WSJ)