Insider Trading

Tyler Durden's picture

Bank Of America Caught Frontrunning Clients





So far in 2013, Bank of America lost money on 9 trading days out of a total 188. Statistically, this result is absolutely ridiculous when one considers that the bulk of bank trading revenues are still in the form of prop positions disguised as "flow" trading to evade Volcker which means the only way a bank could make money with near uniform perfection is if it either i) consistently has inside information that it trades on or ii) it consistently front-runs its clients (the latter incidentally was a topic we covered back in 2009 relating to Goldman Sachs, and which the bank sternly rejected). We now know that when it comes to Bank of America at least one of the two happened.

 
Tyler Durden's picture

Frontrunning: January 21





  • Hilsenrath: Next Cut in Fed Bond Buys Looms - Reduction to $65 Billion Could Be Announced on Jan. 29 (WSJ)
  • China Workforce Slide Robs Xi of Growth Engine (BBG)
  • Obama pulls the race card: Obama Says Race May Blunt Poll Standing in Interview (BBG)
  • Chinese firm's IPO deal switches banks as chairman's daughter moves from JPMorgan to UBS (SCMP)
  • China and Russia may hold joint naval drill in the Mediterranean (RT)
  • Iran invite to Syria talks withdrawn after boycott threat (Reuters)
  • Seven Chinese IPOs Halt Trading After 44 Percent Share  (BBG)
  • U.S. military says readying plans for Olympic security assistance (Reuters)
  • Thank you Bernanke: Investors Most Upbeat in 5 Years With Record 59% Bullish in Poll (BBG)
  • From His Refuge in the Poconos, Reclusive Imam Fethullah Gulen Roils Turkey (WSJ)
 
Tyler Durden's picture

Frontrunning: January 10





  • From the guy who said the market is not overvalued: Q&A with Fed’s Williams on Upbeat 2014 Outlook and What Keeps Him up at Night (Hilsenrath)
  • Obama Readies Revamp of NSA (WSJ)
  • Indian envoy leaves U.S. in deal to calm diplomatic row (Reuters)
  • China overtakes US as largest goods trader (FT)
  • Wall Street Predicts $50 Billion Bill to Settle U.S. Mortgage Suits (NYT)
  • Low-End Retailers Had a Rough Holiday: Family Dollar, Sears Struggle as Lower-Income Customers Remain Under Pressure (WSJ)
  • ECB charts familiar course as Japan, US and UK begin to diverge (FT)
  • Housing experts warn of hiccups as new U.S. mortgage rules go live (Reuters)
  • It's a HFT eat HFT world: Infinium ex-employees sue over $4.1m loss (FT)
  • Slowing China crude imports to challenge exporters (FT)
 
Tyler Durden's picture

Alleged SAC Insider Trader Was Expelled From Harvard Law For Grade Falsification





The Wolf of Wall Street would be proud. Mathew Martoma, the alleged SAC Capital trader at the center of the largest insider trading scheme ever, was, Dealbook reports, expelled from Harvard Law School in 1999 for a false transcript of his grades. While Mr. Martoma's lawyer tried to keep court papers under cover, a summary on the court docketing system shows the judge ordered them unsealed. "Veritas" indeed...

 
Tyler Durden's picture

Frontrunning: January 7





  • Yellen’s Record-Low Senate Support Reflects Fed’s Politicization (BBG)
  • Euro-Zone Inflation Rate Falls in December, even further below ECB's target (WSJ)
  • Zambia politician charged for calling president a potato (AFP)
  • Blame gold: India Savings Deposit Scam Collapse Leaves Thousands Penniless (BBG)
  • Hedge Funds Raise Gold Wagers as Yamada Sees $1,000 (BBG)
  • George Osborne limits cuts options with pensions promise (FT)
  • Vietnam Raises Foreign Bank Ownership Caps to Aid System (BBG)
  • But they said buy a year ago... Goldman to JPMorgan Say Sell Emerging Markets After Slide (BBG)
  • SAC Trial Seen by Probe Convict as Latest Abusive Tactic (BBG)
 
Tyler Durden's picture

Forbes Reveals Its "Top 30 Under 30" In Finance





With Trader Monthly magazine having, ironically, gone out business long ago, all those traders whose egos demanded that their insider trading connections put them at least in one of the iconic "Top X under X" league tables, pardon, rankings, had to bide their time in expectation of one day when their prowess to frontrun others or move markets with repeated calls to 555-7617 (with or without references to Anacott Steel) would be appreciated by such sterling Wall Street "experts" as Anthony Scaramucci. Well, for this year's crop of some 30 traders under 30, the day has arrived. And while Forbes may not be Trader Monthly, the amusement, the hubris and the behind the scenes dealing to appear in such a list, sure are still the same...

 
testosteronepit's picture

Fizzing Optimism For Wild Financial Engineering





Nothing can be a more pungent metaphor for today's investment climate than the headline, “Macau gambling revenue hits record $45 bn in 2013.”

 
Tyler Durden's picture

The Ivy League's New Dream Job: Not Wall Street, But Waiting Tables





As recently as October, we joked that the "best-performing" job category in the US was also the most miserable one - i.e., "bartenders and waiters", also known as jobs which often times get paid below minimum wages and rely on the goodwill of their customers for tips to survive. And indeed, as of November, there were a record 10.4 million waiters in the US, representing a record 45 consecutive monthly increases in this job category - hardly the stuff robust recoveries are made of. However, it turns out the joke may be on us after all because as the WSJ explains, "Waiting Tables at Top-Tier Restaurants Is New Career Path for Ivy League and Culinary School Grads." It appears that gone are the days when every Ivy graduate's fast-track to stardom dream was to become a banker (or in the worst case, a corporate lawyer). And with Wall Street's increasing conversion into a utility, the aspirations of the best and the brightest will progressively shift elsewhere. But waiting tables? Well, as it turns out that's where the money is because "head waiters at top-tier restaurants can earn from $80,000 to as much as $150,000 a year including tips, according to industry executives."

 
Tyler Durden's picture

What The 1% Wear To Court





With an ever-rising number of 1%-ers in the public eye for less-than-god's-work-like behavior, Town and Country magazine knows it can be tough dressing for court when nothing in your closet is off the rack! Here are some fashion strategies for the wealthy and notorious as they approach the bar... the dock is the new red carpet and one must, must find the balance between Brioni and bankruptcy... or Couture over Kevlar...

 
Phoenix Capital Research's picture

Why are so many laws and rules being thrown out?





 

The biggest problem facing investors today is that “the rules” of the game change almost every year. What I mean is that any basic rule investors took for granted could be thrown out the window. Indeed, in the last five years we’ve seen:

 
 
GoldCore's picture

Bloomberg: How to Keep Banks From Rigging Gold Prices





Allegations that banks are manipulating gold prices lower continue to gain credence and Bloomberg have published an article by Rosa Abrantes-Metz entitled ‘How to Keep Banks From Rigging Gold Prices’

 
Tyler Durden's picture

Frontrunning: December 20





  • China cash injection fails to calm lenders (AFP)
  • European Union Stripped of AAA Credit Rating at S&P (BBG)
  • Last-Minute Health-Site Enrollment Proves a Hard Sell (WSJ)
  • Bernanke’s Recession-Fighting Weapon Developed by 1900s Banker (BBG)
  • Asia Stocks Are Little Changed Amid China Funding Concern (BBG)
  • Regulators' Guidance on Volcker Rule Gives Banks Little Relief on Debt Sales (WSJ)
  • On one hand: Man Who Said No to Soros Builds BlueCrest Into Empire (BBG); on the other: Michael Platt's BlueCrest Capital Poised for Rough Close to 2013 (WSJ)
  • BOJ Keeps Record Easing as Fed Taper Helps Weaken Yen (BBG)
  • Bank of England becomes more cautious on economic predictions (FT)
  • Gold Climbs From Lowest Close Since 2010 as Goldman Sees Losses (BBG)
 
Tyler Durden's picture

Frontrunning: December 19





  • Traders Seek an Edge With High-Tech Snooping (WSJ)
  • Gold Drops Below $1,200 an Ounce for First Time Since June (Bloomberg)
  • SAC Manager Guilty as Insider Focus Turns to Martoma (Bloomberg)
  • Why Ukraine spurned the EU and embraced Russia (Reuters)
  • Target confirms major card data theft during Thanksgiving (Reuters)
  • Zuckerberg is no suckerberg: Company to Sell 27 Million Class A Shares While CEO Will Offer 41.4 Million (WSJ)
  • Facebook, Zuckerberg, banks must face IPO lawsuit (Reuters)
  • Swiss Christmas Trees Feel Chill as Franc Helps Rivals (BBG)
  • Iran, six powers to resume nuclear talks after snag (Reuters)
  • Dolphins Suffering From Lung Disease Due to Gulf Oil Spill, Study Says (WSJ)
 
Phoenix Capital Research's picture

On Bernanke's Legacy





Capitalism means failure if you screw up. But under Bernanke’s watch, “capitalism” meant giving trillions in taxpayer money to those who screwed up.

 
 
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