Securities and Exchange Commission

"If You Can't Touch It, You Don't Own It"

The pending Brexit has, not surprisingly, caused a shakeup in the investment world, particularly in the UK. Of particular note is that, recently, asset management firms in Britain began refusing their clients the right to cash out of their mutual funds. Of the £35 billion invested in such funds, just under £20 billion has been affected. The lesson to take away here is that, if you can’t touch it, you don’t own it. Banks and fund management firms can freeze your wealth, so that you can’t access it. Governments and banks can confiscate your wealth. If you don’t have the power to put your hands on your wealth on demand, you don’t own it.

Frontrunning: July 19

  • Turkey's Erdogan recounts night of coup, mulls death penalty (AP)
  • Dissidents Silenced, GOP Convention Turns Attacks on Clinton (WSJ)
  • U.S. police deaths build momentum for law to treat attacks as hate crimes (Reuters)
  • Police across US patrolling in pairs after ambush attacks (AP)
  • UK will not invoke EU Article 50 this year, government lawyer says (Reuters)

Frontrunning: July 12

  • Stocks Advance on Stimulus Bets (BBG)
  • Japan to craft stimulus by end-July, may issue construction bonds (Reuters)
  • May ally says Britain to trigger EU divorce 'when we're ready' (Reuters)
  • Last Woman Standing, Theresa May Offers Calm on Brexit Road (BBG)
  • Merkel urges Britain to quickly clarify relationship with EU (Reuters)

Tesla Slides After-Hours On SEC Probe

Having promised the world more "Sceret Master Plan" smoke and mirrors in a tweet, P.T.Musk now faces an SEC probe for possible securities law breach after Tesla failed to notify investors of the recent autopilot accident, according to The Wall Street Journal. The stock is sliding modestly after-hours...

First Post-Brexit Bailout Looms As Bank Of England Mulls UK Property Fund 'Measures'

Who could have seen that coming? While many have questioned the "suitability of daily-traded, open-ended property funds that are giving investors access to an illiquid asset," all the time the price is rising, no one wants to rock the boat. However, now that Brexit has rocked the boat, spoiling the party for UK property investors and asset managers alike, it's time for Carney to ride to the tax-payer-funded bailout rescue to ensure Bear Stearns 2.0 does not become Lehman 2.0...

"Frack Master" Busted For Blowing Investor Cash On "Whore Card"

Texas businessman Chris Faulkner charmed hundreds of investors and major media companies into believing he had extensive experience in energy markets, but, as Bloomberg reports, it turns out the self-proclaimed "frack master" had none and that at least $30 million he raised was spent on strippers, escorts, lavish vacations and other personal expenses.

HFTs Lose: IEX Granted Exchange Status As SEC Says The Speed Race Is Over

"The Staff acknowledges that market participants using the most sophisticated technology may today encounter access delays of substantially less than one millisecond when accessing the quotes of a single exchange whose data center is co-located with their own or located nearby.  However, even the most technologically advanced market participants today encounter delays in accessing protected quotations of other “away” automated trading centers that can substantially exceed one millisecond, that either are transitory or permanent."

Why Are So Many Bankers Committing Suicide?

"Yes he killed himself. But there’s a question: could it be suicide by extortion... There’s a couple suspicions I have..." - son of Deutsche Bank exec William Broeksmit

Goldman Fundraising For Failed Malaysian Wealth Fund Probed By NY Bank Regulator

The New York bank regulator has asked Goldman Sachs to "swiftly report" on its internal review of more than $6 billion in bond sales for 1MDB, Malaysia's failed sovereign wealth fund. In a letter, the New York bank regulator also asked Goldman to provide an overview, by June 14, of every investigation in the U.S. and abroad into its work for the fund. This is bad new for Mr. Kimora Lee.

The Task Confronting Libertarians

If libertarians lose on the inflation issue, they are threatened with the loss of every other issue. If libertarians could win the inflation issue, they could come close to winning everything else. If they could succeed in halting the increase in the quantity of money, it would be because they could halt the chronic deficits that force this increase. If they could halt these chronic deficits, it would be because they had halted the rapid increase in welfare spending and all the socialistic schemes that are dependent on welfare spending. If they could halt the constant increase in spending, they could halt the constant increase in government power.

Alibaba’s SEC Probe: What’s Missing From This Disclosure?

On 24-May-2016, Alibaba Group disclosed what appears to be an informal SEC investigation. This is the first time this matter has been disclosed. Details are scant, leaving the investor unable to adequately assess the risk it poses. Using the template of who/what/where/when/why, we will examine what is missing. Our conclusion is you are left with a risk that management views as material but you cannot analyze. We generally recommend avoiding such scenarios.

Frontrunning: May 27

  • Oil prices ease from seven-month high to below $49 (Reuters)
  • Wall Street Waits for Yellen Before Taking Off for a Long Weekend (BBG)
  • Donald Trump Celebrates Clinching GOP Delegate Race (WSJ)
  • Trump vows to undo Obama's climate agenda in appeal to oil sector (Reuters)
  • Japan Fails in Bid to Have G-7 Warn of Global Crisis Risk (BBG)
  • Valeant Rejected Joint Takeover Approach From Takeda, TPG (WSJ)