"...many hedge funds use financial engineering and accounting tricks - even illegal insider information - to fill their coffers at investor expense. And then they use those ill-gotten gains to influence politics."
The prominent U.S. attorney fired by Donald Trump this weekend has been justly acclaimed for his pursuit of political corruption. But his treatment of the Wall Street executives involved in the financial meltdown was far less confrontational.
Former Goldman Sachs Group Inc. banker Steven Mnuchin has been recommended by Donald Trump’s transition team to serve as Treasury secretary, according Bloomberg, and the choice is awaiting the president-elect’s final decision.
While we have often heard that members of Congress, who are not only exempt from insider trading oversight, are also ardent daytraders we had never seen it in action. Until now... and we found something strange.
As we warned heading into the Brexit vote, it appeared that many human investors had quite a bit of misplaced confidence in the Remain vote, and it ultimately turned out that we were right. It also turns out that the algos have traded the event better than humans as well.
"I can't tell you how long it's going to take but I'm anticipating an 80% drop or 70% drop, something in that neighborhood. Tobin's Q got down to 0.54 in 2009...The reason it didn't go lower is because we had the biggest fucking bailout ever orchestrated in the history of the banking system..."
Consider: an influential consulting firm that advises some of the world's largest companies on strategic questions such as M&A and restructuring has an internal investment arm with $9.5 billion in assets that hasn't lost money more than once in 25 years.
"Most people in the bulk of the job market are not involved in super-high-value jobs. They are doing routine work and tasks and it's precisely these tasks that computers are going to be better at doing..."
We were hoping that Mr. Cohen, who surely would not want his name dragged back into another insider trading scandal as he prepares to move back to managing other people's money which he will be allowed to do in two years time, now that the SEC has granted him a reprieve from the isolation of a family office, will provide us with the required information, the same information which several years ago was material enough for the Feds to unleash the most historic crackdown on a legendary hedge fund in modern capital market history.
We're going to have a two-step affair: a low today, maybe tomorrow and then we rally and people take a deep breath. After we see that rally, maybe anywhere from a week and a half to three weeks, we decline again and I think that's coincident with the Shanghai Composite and the Hang Seng Index declining.
Official Washington is awash with tough talk about Russia and the need to punish President Putin for his role in Ukraine and Syria. But this bravado ignores Russia’s genuine national interests, its “red lines,” and the risk that “tough-guy-ism” can lead to nuclear war. In short, Russia is being offered only the binary choice: to acquiesce to the “benevolent” hegemon, or to prepare for war.
It has been a long way up and quick ride down for SunEdison but bad news keeps piling up for the hedge fund hotel even as it dead-cat-bounces again. As the stock bounces, just as it bounced in September after Steve Cohen's Point72 exposed their stake and JPM jumped to the rescue, uncertainty remains extreme. Amid a surge in debt and increasingly negative operating cash-flow, the plunge in stock (asset) price may have triggered a cross-collateral margin call of around $315 million. Furthermore, mass layoffs are on the cards as the CEO attempts to "optimize" the business.