This page has been archived and commenting is disabled.

The SEC Needs Your Feedback

Tyler Durden's picture




 

Critical update: Zero Hedge thrives on its proactive readers, yet I never expected a barrage of information such as the one I received since posting this. In the hundreds of emails received over the past several hours, much of it from current industry insiders, a substantial portion is likely actionable, and upon further refinement, enforceable. Going through it all will take time, however I take this opportunity to welcome any and all readers to provide information they believe captures wrongdoing in the financial system - in the absence of objective, unbiased and fair external regulators, it is the responsibility of everyone, but most notably insiders, to cleanse the system.

Zero Hedge will filter the data and forward our work product directly to appropriate Attorney General offices and local FBI branch offices. In retrospect, approaching the SEC and FINRA is futile, as they are both as much an integral part of the system as the perpetrators they are supposed to protect against. We're slowly learning that fact. And we are very, very pissed off.

So...

Dear CDS trader talking on the phone to your sales coverage discussing insider information on a deal while your bored analyst is eavesdropping...

Dear Senior Vice President at the strip club boasting to your subordinates how you misspent tens of thousands of taxpayer and investor dollars on strip clubs and prostitutes currying favor for the client, to catch that elusive multi-million deal so you can buy the third vacation home you will never frequent...

Dear General Counsel receiving sexual favors from the blonde assistant in exchange for promises of advancement that never come...

Dear Chief Executive Officer having an affair with the lady at the cosmetics section in that 5th Avenue store, while your wife and 3 children wait at home...

Dear retail broker guaranteeing your 70 year old client that investing in this particular BBB+ rated CDO will never lose money, just to hurry up and do the trade in the next 5 minutes...

Dear sell-side analyst telling your equity salesmen over shots of Grey Goose at Marquee just how crappy the REIT that you just upgraded is...

(and yes, you all know who you are)

..Please look well around you, and pray that you did not piss off any of the people close to you, who know every move you make, and every word you speak... sleep well tonight, because tomorrow your face just may make the proverbial front page of the Wall Street Journal...or Zero Hedge if the former is just a little conflicted.

And a word of warning - please be prudent in contacting us. A major former investment bank, now bank holding company, has retaliated against an employee for daring to contact Zero Hedge. No more information will be disclosed at this point, out of respect for what will likely be a major whistleblower lawsuit. But please do not let that happen to you - after all the only way to disassemble the machine is from the inside.

***

Since FINRA and the Securities and Exchange Commission believe in going only after $1,000 insider traders with the full weight of their enforcement teams, yet ignore major market manipulation in futures and other markets, Zero Hedge wanted to present readers an opportunity to be heard by the market's regulators.

As to what specific event to reference, frequent readers do not need our prompting, however a good example which if nothing else, needs clarification, is the major odd /ES ramp up on no news two nights ago, ahead of the atrocious claims number, which was covered extensively by Karl Denninger at Market Ticker.

Additionally, the phenomenal spike in call option volume two months ago in insurance companies before it was announced they would all become eligible for TARP was about as fraudulent as one can imagine and yet neither the SEC nor FINRA have done anything to address that obvious market manipulation. And of course the major news leaks and resulting stock moves just ahead of every bank follow-on equity offering are by now watercooler jokes when discussing just which zoo it is that the regional SEC enforcement officer must has escaped from.

Remember, the voice of the masses does not go unnoticed: the amazing grass roots support for HR1207 is the main reason the "Audit The Fed" bill generated not only enough co-sponsors to pass congressional voting, but is now at over 240 supporters - a staggering result for a bill that only had 160 supporters the week before Zero Hedge decided to take the issue public. Also, numerous ZH FOIA requests have proven successful mostly due to material reader support and participation.

Which is why we recommend that all readers who feel like they would like to invest money in a market that is nothing less than a swing-trading casino, manipulated exclusively by several major players, and where cash trading is pointless due to the growing preponderance of program and algo trading, click on this link, and voice your displeasure directly to the SEC about all concerns you may have, both public and private.

http://www.sec.gov/complaint/cf942sec9570.htm

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 06/29/2009 - 07:52 | 2725 Anonymous
Anonymous's picture

seriously, thank you for what you are doing

Mon, 06/29/2009 - 14:15 | 2784 Anonymous
Anonymous's picture

I like your move to sniffing out whistleblowing.

In the past few years as absurd amounts of money and influence have been showered on the Wall Street elite, many have become pseudo celebs. The wealth and influence of Hollywood elite has always been neutralized by the paparazzi and gossip columnists like Perez Hilton. What is needed is a tongue and cheek ego-check pink pages for Wall Street titans. Casual dalliances and screw jobs can be reported. Ghastly fashions can be discussed. Etcetera.

Mon, 06/29/2009 - 16:09 | 2829 Anonymous
Anonymous's picture

Thought I'd just cross-post this paper to here for those who believe that closing price manipulation on trading alone is perfectly legal or that there can be nothing done about it...

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1009001

Abstract:
We quantify the effects of closing price manipulation on trading characteristics and stock price accuracy using a unique sample of prosecuted manipulation cases. Based on these findings we construct an index of the probability and intensity of closing price manipulation. This index can be used to study manipulation in the large number of markets and time periods in which prosecution data are not readily available.

According to the paper, such manipulation IS illegal. The entire paper is download-able on this site.

Mon, 06/29/2009 - 16:10 | 2830 Anonymous
Anonymous's picture

Thought I'd just cross-post this paper to here for those who believe that closing price manipulation on trading alone is perfectly legal or that there can be nothing done about it...

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1009001

Abstract:
We quantify the effects of closing price manipulation on trading characteristics and stock price accuracy using a unique sample of prosecuted manipulation cases. Based on these findings we construct an index of the probability and intensity of closing price manipulation. This index can be used to study manipulation in the large number of markets and time periods in which prosecution data are not readily available.

According to the paper, such manipulation IS illegal. The entire paper is download-able on this site.

Wed, 07/01/2009 - 12:26 | 3562 Steak
Steak's picture

The first conviction that comes from this will give ZeroHedge a better enforcement record than the SEC.

I have no faith in our government to serve the people. Wall Street = Main Street sums it up perfectly in that regard.

When I first started reading I never imagined you would/could take it this far. Now I think you are one of the last hopes we as citizens of this kleptocracy have left.

Wed, 07/01/2009 - 15:50 | 3642 Anonymous
Anonymous's picture

if i win the lottery im donating 2mil to zero hedge and 2mil to denninger to dismantle this crook machine.

Fri, 07/17/2009 - 05:22 | 8544 Anonymous
Anonymous's picture

OTC:BPAC
history
beware
SEC
3 August 1999
The SFC's Successful Prosecution for Market Manipulation
The Securities and Futures Commission (SFC) announced today that it had successfully prosecuted Mr. LAU Kin Chung for manipulating the share price of South East Asia Wood Industries Holdings Limited (SEA Wood). Mr. LAU pleaded guilty before Ms Pang Ip Tsui-Yuk at Western Magistracy to a total of 4 summonses in relation to his employment of improper trading practices during the period April 1998 to July 1998 and he was fined $80,000 and ordered to pay costs of $50,000 to the SFC.
An investigation launched by the SFC into unusual price movements in SEA Wood shares found that Mr LAU, the Vice President of SEA Wood, since the listing of SEA Wood shares in September 1997 to March 1998, had by April 1998 accumulated a large number of SEA Wood shares. However, since September 1997 the price of SEA Wood shares had declined from about $2 to $0.38 by March 1998. In order to protect the value of his investment and arrest this decline in price, Mr. LAU conducted a series of trades in SEA Wood shares with the intention of creating a false and misleading appearance of active trading in the said shares. Such trading was in contravention of section 135(1)(a) of the Securities Ordinance.
As part of this scheme Mr. LAU also bought and sold SEA Wood shares from and to himself through his trading accounts maintained at 2 different brokerage houses. These fictitious transactions involved no change in beneficial ownership and were in contravention of section 135(3) of the Securities Ordinance.

Do NOT follow this link or you will be banned from the site!