United States Attorney

Preet Bharara Press Conference On Dean Foods Insider Trading Scandal That Snagged Phil Mickelson

Over a decade ago, the US cracked down on Marth Stewart as an example of all that is wrong with the US financial system. The same US which did not put any  bankers in prison after the financial crisis. We now get a repeat. The United States Attorney for the Southern District of New York Preet Bharara announces charges against William “Billy” Walters and Thomas Davis, the former Chairman of the Board of Directors of Dean Foods Company, for insider trading.

Phil Mickelson Charged In Insider Trading Scam, Accused Of Illegal $931,000 Profit

Having denied any investigation as "inflammatory and speculative" when the Phil Mickelson insider-trading brouhaha initialy erupted two years ago, it appears the golfer's lawyers may have to shift from the "deny deny deny" defense to "let's make a deal."  Having been unable to pin anything on Wall Street insider Carl Icahn, Vegas sports gambler Billy Walters, and pro-golfer Mickelson with regard their trading in Clorox (during Icahn's takeover bid); the SEC has arrested Walters and announced criminal charges against Dean Foods' Chairman Thomas Davis (who stepped down after suspicions of leaking insider tips) and after generating nearly $1million in profits from the Dean Foods trading tip Phil Mickelson is charged with insider trading and wilb be forced to disgorge ill-gotten gains.

In Latest Market-Rigging Scandal, ITG Busted For Frontrunning Clients In Its Dark Pool

Since the market is once again on the verge of a terminal liquidity seizure with its associated side-effects (see China for details), the authorities needed to remind the "market" just who the scapegoat will be when the next crash finally does come. Which is why earlier today in an unexpected "preliminary second quarter guidance" release, ITG, owner of the Posit dark pool, was just busted with a $22.6 million potential SEC settlement for what appears to have been blatant frontrunning of company clients in its own prop trading pod. But what is particularly amusing in this case is that while everyone knows that when it comes to HFT's, it is never called "rigging" - the proper nomenclature is "glitch", so now we learn a new term to use instead of "criminal frontrunning" - drumroll... trading experiment,

"It's Laughable Really": Why No One, Especially Not Jamie Dimon, Will Be Held Accountable For London Whale

"Mr. Martin-Artajo is in Spain, where a court has refused to extradite him, and Mr. Grout is in France, which typically does not extradite its own citizens. Although the investigation in the United States officially remains open, it appears no one, in all likelihood, will be held legally accountable. 'When risky behavior is repeatedly tolerated or concealed, you have to wonder if higher-ranking people should have been targeted.'" 

Frontrunning: June 19

  • Greek PM optimistic on debt deal as banks bleed (Reuters)
  • Greek central bank chief says banking system stable (Kathimerini)
  • ECB Said to Confer on Emergency Greek Aid Amid Cash Flight (BBG)
  • More tax "avoidance": Citigroup to shift European retail banking HQ to Dublin (Reuters)
  • Florist's tip led police to Charleston shooting suspect (USAToday)
  • Asian shares edge higher on Fed caution, China sell-off intensifies (Reuters)
  • Toyota in damage control mode after American exec arrested (Reuters)
  • Venezuela Oil Loans Go Awry for China (WSJ)

FIFA "Rampant" Corruption Exposed Following DOJ Indictment, 14 Arrested In Swiss Hotel - FBI/DoJ Press Conference Live Feed

That FIFA has been a hotbed of corruption, shady backroom dealings and outright crime for years, has been known to anyone who has a passing interest in football. Which is why we were surprised to learn this morning that none other than the US Attorney General, seemingly content with all the wristslaps handed out to criminal US foreign banks (and subsequent SEC waivers) gave FIFA the red card in a charge detailing "rampant" corruption in international soccer hours after 14 officials were arrested on accusations of a 24-year scheme to enrich themselves through FIFA, whose office was searched in a series of dawn raids in Zurich.

How Chinese Oligarchs Used Fake Trade Invoices To Launder Almost $1 Trillion Globally

"China’s capital account might be closed—but it’s not that closed. Between 2003 and 2012, $1.3 trillion slipped out of mainland China—more than any other developing country... GFI says the most common way money leaks out in the developing world is through fake trade invoices. The other big culprit is “hot money,” likely due to corruption—which GFI gleans from inconsistencies in balance of payments data. In China, both activities have picked up since 2009." Just like in the U.S., the so-called government “stimulus” in China achieved nothing more than to stimulate an oligarch crime spree. Hence the global boom in $100 million real estate, art and everything extremely high-end. As intended, the bailouts and stimulus on a global basis went directly to the 0.0001%.

If You See A Terrorist Say Something, FBI Warns After Busting ISIS Threat To "Kill President Of US"

With the invasion of Syria, pardon, the "Islamic State" on behalf of US allies in the middle east imminent, it is time to send the fear meter to Max, and spook the US population with the reminder that far from being expert, Hollywood-quality video editors, ISIS is engaged in not only in selective, carefully sponsored and funded beheadings several thousand miles away, but is operating right under everyone nose.

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)

Eric Holder Releases "Message To The People Of Ferguson"

"At a time when so much may seem uncertain, the people of Ferguson can have confidence that the Justice Department intends to learn - in a fair and thorough manner - exactly what happened... In order to begin the healing process, however, we must first see an end to the acts of violence in the streets of Ferguson."