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Goldman Implicated In Heinz Insider Trading Probe
When the news broke of the SEC's action against the HNZ call option insider traders, and we posted the full SEC charge against the perpetrators whose actions Zero Hedge reported on first, we asked this regarding one of the entities named: "the trade occurred through an "omnibus account located in Zurich, Switzerland in the name of GS Bank IC Buy Open List Options GS & Co c/o Zurich Office (the "GS Account")." Does GS stand for Goldman Sachs one wonders?" This followed our prior post, rhetorically titled "Guess Who Was Buying HNZ Stock From Its Clients", with the answer of course being Goldman Sachs, which had had HNZ stock at a Sell rating for months, and which just days before reiterated its negative sentiment. But for the most part the post was written in jest. Turns out the joke was on everyone else, because just as we feared, or rather knew, Goldman was indeed implicated all along.
From Reuters:
Goldman Sachs Group Inc is cooperating with a U.S. Securities and Exchange Commission probe into insider options trading in H.J. Heinz Co before the food company announced it was being acquired, Goldman said on Friday.
Earlier in the day, the SEC filed suit against unknown traders using an account in Switzerland to buy options in Heinz before the company was purchased. The SEC suit does not explicitly name Goldman Sachs but refers to the account in Switzerland as the "GS Account."
While none of this is surprising, we do find it curious that from "Vampire Squid", Goldman Sachs has now metastasized into "he who must not be named."
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Oh man, like Rothschild with Waterloo.
london directed...maybe from plaistow
http://www.youtube.com/watch?feature=player_embedded&v=MtuVBPwzstM#!
To be honest the whole think seems pretty amateurish to say the least - to buy 2500 contracts like this was a sure way to get caught, and to do it in through a Swiss bank was also a big mistake (regardless of the myths carried over around here, Swiss banks are doing quite extensive due diligence on their clients and are cooperating in investigations). As for the Goldman "implication" they also have a brokerage business and I'm not sure they could / should have refused this order ?
the broker should have an audit trail showing it knew the client intimately (proper person giving the instruction), that it had satisfied money laundering rules (including checking for terrorism and drug links) plus be able to show a referral to its compliance, risk management and other rmarket manipulation risk teams showing that it had pointed out the risks, warned about the outsize market volume, highlighted the need ot cross outsize bid/offer spreads to get the deal done and the consequences together. It should also have reported the trade to relevant stock exchanges and regulatory bodies, prior to the trade being executed, since it was such an abnormal trade.
the broker who did not do this is a guilty as the insider and is not fit to carry a license.
chances of the insider, the broker, the exchange, the regulator being held to account for impoverishing the seller of these call options using market driving information?
double O, triple O, fuck all blank. mark another one up to criminals over the people employed to prevent crime.
hooligan2009: do you have any pointer to those supposed broker "obligations" ? This was a $90'000 premium buy - not earth shattering at first look.
i was basing the need for those (draconian?) compliance and reporting obligations on the view expressed in the article that the orders for "out of the money" call strikes represented a significant increase in "normal" trding volumes in those strikes. the $90,000 premium could easily cover shares with a value of LARGE in underlying shares, depending on how far out the money they were. 2500 lots x 1,000 shares per lot x say, 65 strike = 162.5 million in value?
I just think that Jamie Dimon has realised that, if the waters are ever going to get calm again (and the bankers avoid their comeuppance), either the Squid or the Morgue will have to be sacrificed on the alter of 'justice'. Either that, or they all go down someday not long from now.
I think we are going to see dog eat dog.
Jamie Dimon's real name is
Iamie Demon (Screw u)
Beats me how Goldman still continues doing business after so many frauds
It appears that the authorities are also frauds
Fining Goldman is not the solution.
Closing down the firm is the correct answer. And it will be an example for all others too.
Seriously, GS inside trading, who surprises abt it?
This case almost gives me the impression that they did it on a lark, just to prove to everyone they can. No fear, no threat of prosecution or punishment to fit the crime, just brazen arrogance and a belief they have a God given right to live above the law and the rest of us and make money any way they can think of.
It’s clear now these incidents aren’t strange outliers of an otherwise fair and honest group of professionals. These are just the few examples that manage to leak from behind the walls, curtains, and facades of organizations which rely on these practices as a mantra and core business model. Front running, insider trading, market manipulation, deception, lying, cheating, and stealing is in their blood. They can’t avoid doing it even if they wanted to. In a recent interview, Lloyd Blankfein stated that he didn’t see himself leaving Goldman anytime soon, because, “This is what I do”. He should have added, “This is who I am, and there’s nowhere else for me to go. Furthermore, there’s nothing that you Muppets and suckers can do about it. Deal with it!”
Why Not? Soon, our (99%) one meal for the day will be Heinz ketchup with a dash of water! Yum
shocking to hear no gambling is occurring in that establishment , just shocking..
One nice addition that you don't normally see on many TW520D Watch Cell Phone is an external antenna port that allows users to boost the mobile signal if required.
SEC to Goldman - "I'm in lesbians with you!"