Insider Trading

Frontrunning: December 11

  • Shale operaters Goodrich, Oasis Petroleum cut spending for 2015 as oil slides (Reuters)
  • Greece to hold elections in January if president vote fails (Reuters)
  • Norway’s Shock Rate Cut Drives Krone to Lowest Since 2009 (BBG)
  • ‘Severe Downturn’ Threatening Norway, Central Bank Governor Says (BBG)
  • Russia’s Fifth Rate Increase Fails to Halt Ruble Slide to Record (BBG)
  • SNB Says Deflation Risks Increased as Franc Cap Maintained (BBG)
  • China eases bank lending restrictions, PBOC targets 10 trillion yuan in loans for 2014 (Reuters)
  • Mobius Says China’s Bull Market Is Just Getting Started (BBG)
  • How Wal-Mart Made Its Crumbling China Business Look So Good for So Long (BBG)

Is Insider Trading Legal Following Appeals Court Tossing Out Two Hedge Fund Convictions

In a stunning rebuke of Preet Bharara's insider-trading prosecutions record, Businessweek reports a federal appeals court overturned and threw out the guilty verdicts of two hedge fund managers, Todd Newman and Anthony Chiasson, ruling jury instructions tainted their verdicts and imperiling other cases brought in his multiyear probe. In a 28-page decision that could rewrite the course of insider trading law, sharply curtailing its boundaries, the United States Court of Appeals for the Second Circuit in Manhattan tossed out the case on technicalities which could also lead to the release of SAC's Michael Steinberg - Bharara's signature prosecution - as Steinberg's lawyer remarked, "it sends a loud and clear message that the government will be rebuked when it tries to turn innocent conduct into a crime." So insider-trading is legal now... with the right lawyer and judge. We wonder how many shipments of Picassos to the three appeals court judges did the verdict cost Steve Cohen?

How The World's Most Leveraged Hedge Fund Got Away With Insider Trading

"... Shortly after returning from a trip in late 2009, Farmer erased electronic notes, in Microsoft Word format, that were stored on thumb drives, Zip drives and a shared drive at Citadel, agents wrote in a summary of one of the interviews with him. Farmer also threw away his handwritten notes because that was his normal practice and because they were incriminating, agents wrote. Farmer got rid of e-mails as well, according to their summary. “This,” they wrote, “wiped the slate clean."

Frontrunning: November 24

  • Grand jury expected to resume Ferguson police shooting deliberations (Reuters)
  • PBOC Bounce Seen Short Lived as History Defies Bulls (BBG)
  • Home prices dropped in September for the first time since January (HousingWire)
  • UPS Teaches Holiday Recruits to Fend Off Dogs, Dodge NYC Taxis (BBG)
  • US oil imports from Opec at 30-year low (FT)
  • Hedge Funds Bet on Coal-Mining Failures (WSJ)
  • Putin Woos Pakistan as Cold War Friend India Buys U.S. Arms (BBG)
  • How the EU Plans to Turn $26 Billion Into $390 Billion (BBG)
  • The $31 Billion Bet Against Brazil’s New Finance Minister (BBG)

Why Banks Should Not Be Allowed To Manipulate Metals Markets In 4 Simple Points

As Day 2 of Carl Levin's Senate hearing on the fact that banks did indeed corner and rig the physical commodity markets - with the erosion of the line separating banking from commercial activities leading to the detriment of consumers and the financial system - we thought the world needed a 'dummy's guide' to why the biggest banks should not be allowed to do this... or in legalese, here are the four most negative effects of allowing FHCs to engage in Complementary Commodity Activities.

CDS Liquidity Set To Tumble As Deutsche Bank Exits IG, HY Trading

Moments ago, Bloomberg released a stunning update that Europe's largest bank is exiting the single-name, both IG and HY, CDS product line, which for years was one of its biggest revenue generators and a product in which DB was for a long time one of the best and deepest CDS trade axes. As Bloomberg reports, Deutsche Bank AG will stop trading investment-grade and high-yield credit default swaps on single credits and will instead focus on trading corporate bonds, according to a spokeswoman.

Frontrunning: November 17

  • Scuttled deals worth $580 billion put hedge funds on back foot (Reuters)
  • Mounting Pressure on OPEC Spurs More Wagers on Oil Rally (BBG)
  • It's not just US real estate: Chinese Students at U.S. Universities Jump 75% in Three Years (BBG)
  • Frankfurt Open for Yuan Clearing as Liquidity Rises (BBG)
  • Obama defends healthcare law after adviser criticism (Reuters)
  • Michael Hasenstab Bets Big in Controversial Places (WSJ)
  • Facebook seeks foothold in your office (FT)
  • Russia Seen as Greatest Threat in Poll as Oil Erodes Putin Power (BBG)
  • Falling Oil Prices Test OPEC Unity (WSJ)

Frontrunning: September 25

  • Apple CEO Cook Goes From Record Sales to IPhone Stumbles (BBG)
  • Deal With Saudis Paved Way for Syrian Airstrikes (WSJ)
  • Drone delivery: DHL 'parcelcopter' flies to German isle (Reuters)
  • Tory Burch Hires Ralph Lauren Veteran as Co-CEO (WSJ)
  • Apple releases iOS 8 workaround to fix dropped cell service (Reuters)
  • Ukraine Probes Ex-Minister Over $3 Billion Russian Bond (BBG)
  • Goldman Sachs-Led Group Near Deal to Buy Messaging Startup Perzo (WSJ)
  • U.K. Seeks to Criminalize Manipulation of 7 Benchmarks (BBG)

Paul Craig Roberts: "A Rigged Gold Price Distorts Perception Of Economic Reality"

The US economy and financial system are in worse condition than the Fed and Treasury claim and the financial media reports. Gold serves as a warning for aware people that financial and economic trouble are brewing. In the 21st century, US debt and money creation has not been matched by an increase in real goods and services. The implication of this mismatch is inflation. Without the price-rigging by the bullion banks, gold and silver would be reflecting these inflation expectations.

Frontrunning: September 9

  • Showtime for Apple: Big phones, smart watches and high expectations (Reuters)
  • Bank of England Gov. Mark Carney Signals Spring Rate Rise (WSJ)
  • Quebec Shows Scots Question Returns Even If Answer Is No (BBG)
  • Hush money with a 9 year vesting period: Ex-SAC Fund Manager Martoma Sentenced to Nine Years in Prison (BBG)
  • Dreams on hold, Brazil's 'new middle class' turns on Rousseff (Reuters)
  • Fed to Hit Biggest U.S. Banks With Tougher Capital Surcharge (WSJ)
  • Egypt court sentences Brotherhood leader, cleric to 20 years in jail (Reuters)

Frontrunning: August 27

  • Islamic State executes soldiers, takes hostages at Syria base (Reuters)
  • Buffett Burger King Funds Flip Obama’s Inversion Calculus (BBG)
  • Equities Reach Record $66 Trillion as S&P 500 Hits 2,000 (BBG)
  • Central Banks Playing Own Version of Plaza-opoly With FX (BBG)
  • Russia court closes McDonald's branch for 90 days (Reuters)
  • Finland Says NATO an Option After Russia ‘Violates’ Border Laws (BBG)
  • Netanyahu Hit With Domestic Criticism Over Gaza Truce (BBG)
  • Biggest Danish Fund Readies for Rate Shock as Exit Narrows (BBG)
  • Nonprofit Hospitals' Profits Fall (WSJ)