Securities and Exchange Commission
Just when you thought The BoJ would save the day with its miraculous intervention in carry trades, this happens:
*BOEING SAID TO FACE SEC PROBE OF DREAMLINER AND 747 ACCOUNTING
And just like that, Boeing's stocks crashes 10% dragging the major US equity markets with it. So, just as a reminder, this is a firm which the US government (via Ex-Im Bank) lends billions of US taxpayer dollars... and now the SEC is accusing them of fraud.
Investment expert, Harry Markopolos, wrote detailed letters to the SEC for years, raising red flags that Bernie Madoff was running a Ponzi scheme – only to be ignored by the SEC as Madoff fleeced more and more victims out of their life savings. Today, there are two equally erudite scribes who have jointly been flooding the SEC with explosive evidence that some Exchange Traded Funds (ETFs) that trade on U.S. stock exchanges and are sold to a gullible public, may be little more than toxic waste dumped there by Wall Street firms eager to rid themselves of illiquid securities.
Since granting IEX exchange status would lead to an immediate market structure disruption, one which would impair such embedded HFT players as Citadel which, as we have explained previously is the NY Fed's preferred "arms length" intermediator in the market to ingite momentum at critical downward junctions, we are very skeptical that when all is said and done, the SEC will grant IEX what it wants: after all there are too many status quo revenue models at stake, not to mention a potential threat to the Fed's preferred market "intervention" pipeline.
- Stocks cautious after rocky China data, bonds fly high (Reuters)
- Oil falls on China data, fading prospect of OPEC action (Reuters)
- Republican Vote in Iowa Caucus Hinges on Newcomer Turnout (WSJ)
- When Trump tells supporters not to donate, they mostly listen (Reuters)
- Goldman Sachs Employees Shift to Rubio as Bush Support Fades (BBG)
- Four Theories on How Oil Has Hypnotized the Global Stock Market (BBG)
In a disappointingly familiar (and entirely unsurprising) case of deja vu, SEC Chair Mary Jo White raised the specter of Wall Street taking advantage of greedy mom-and-pop investors once again. Having crashed 21% in the last three weeks alone, sudden weakness in recent IPOs raises questions about the issuance process, as Bloomberg reports, White warned investors that "you have to make sure you don’t have some very aggressive promoters taking advantage of that climate." As big investors mark-down their lofty valuations, it will be the average joe, pumped and dumped by CNBC and its ilk, that end up the biggest losers in this all too real show.
Ever since it started making complicated bets against some leveraged ETFs, Miller’s Catalyst Macro Strategies Funds has since grown from $500,000 in assets at the start of the year to about $170 million. It achieved a more than 50 percent return this year, placing it far ahead of its competitors.
America's equity markets are broken. Individuals and institutions make transactions in rigged markets favoring short-term players. The root cause of the problem is that stocks trade on numerous venues, including 11 traditional exchanges and dozens of so-called dark pools that allow buyers and sellers to work out of the public eye. This market fragmentation allows high-frequency traders and exchanges to profit at the expense of long-term investors. Mr. Lewis was right.
"Devastated" Short Who Launched Online Begging Campaign To Fund Margin Call Was Right: KaloBios DisintegratesSubmitted by Tyler Durden on 12/23/2015 16:44 -0500
"... this until recently bankrupt company whose price has exploded in the past two days, has become not only a poster child for everything broken and manipulated with the market (think 2014's CYNK one year forward) but has the market following with morbid to find out how the tragicomedy of "Shkreli vs the Shorters" concludes." - November 20, 2015
- Battered oil wins respite, lifts stocks (Reuters)
- Oil Halts Decline as Emerging Market Stocks Climb on China (BBG)
- Bonds Set to Beat Stocks Globally in 2015 After China Falters (BBG)
- SpaceX Falcon rocket nails safe landing in pivotal space feat (Reuters)
- China Leaders Flag More Stimulus After Top Economic Meeting (BBG)
- SEC to Retrench Case Against SAC’s Steven A. Cohen (WSJ)
A new whistleblower has leaked a catalog of cell phone surveillance devices used by the military, intelligence agencies, and local police departments, including the controversial ‘Stingray’ spying tool. At this point, it’s painfully obvious that America is the home of the Police-Surveillance State. Privacy is a dying notion in a nation of fools determined to be safe rather than liberated. If you give a damn, now is the time to stand up and be heard.
Martin Shkreli, "America's Most Hated", "Price Gouging" Biotech Mogul Arrested For Securities Fraud, Released On $5 MM BondSubmitted by Tyler Durden on 12/17/2015 21:20 -0500
"I’ll show up with $2 million bail money no fucking problem.”
Update: The SEC Folds - SEC PERMITS TEMPORARY SUSPENSION OF THIRD AVENUE REDEMPTIONS, WILL BE SUBJECT TO ONGOING SEC OVERSIGHT
HYG, the now infamous high-yield bond ETF, had an "ok" day, rallying along with everything else post-Fed. However, shortly after the close, it started to fade quickly as SEC "expressed concerns" about Third Avenue's plan for liquidation.
Obama's Vendetta With Gun Makers Gets Personal: Smith & Wesson Shares Plunge After Call For SEC InvestigationSubmitted by Tyler Durden on 12/15/2015 20:02 -0500
As it turns out, Obama is not a fan of efficient market irony and instead of letting the chips on gun control fall where they may especially if it means record stock prices for the shareholders of SWHC and RGR, the president has decided to take his vendetta with US gun makers to the next level and as the NYT reported overnight, "the New York City public advocate on Monday asked federal regulators to investigate whether the gun manufacturer Smith & Wesson had made adequate disclosures in its financial statements."
- Anti-Trump Effort Launches Super PAC (WSJ)
- Muslims decry Trump's proposal to keep them out of US (AP)
- Debate Heats Up Over No-Fly List, Gun Sales (WSJ)
- OPEC Takes Down Oil Majors as Lower-for-Even-Longer Kicks In (BBG)
- Chinese Companies Are Trapped in IPO Logjam (WSJ)
- Republican Ted Cruz vaults into first place in new Iowa poll (Reuters)
In NYT Op-Ed, Hillary Lays Out How She'd "Rein In Wall Street" (And No, Not By Demanding Even More Donations)Submitted by Tyler Durden on 12/07/2015 10:41 -0500
Overnight Hillary Clinton, in her latest populist push to present herself as "one of the people" wrote a NYT op-ed explaining "How I'd Rein In Wall Street", we were wondering if it would include draining Wall Street balance sheets with mandatory and far greater donations to her campaign by Wall Street firms - a strategy that may actually work as it hits banks where it hurts the most: their money. To our disappointment, this was not included.