Heinz Insider Trader Revealed: A Goldman Client

Tyler Durden's picture

The saga of the Heinz call option insider trade, first profiled here, and the Goldman trail, also first observed here ("Does GS stand for Goldman Sachs one wonders"), just got even more fun as revelations that it was none other than a client of Goldman's Private Wealth group out of Zurich that hit the buy key on those thousands in call options one day ahead of the announcement. From Reuters: "A Goldman Sachs private wealth client is the holder of the Swiss account at the center of an investigation into insider trading in H.J. Heinz Co options, regulators said in a court filing late Wednesday." Alas, and as before, the question of who leaked the inside information to this Goldman client still remains unanswered.

The U.S. Securities and Exchange Commission filed a lawsuit against unknown traders last week, alleging they used a Goldman account in Zurich to buy an unusual amount of Heinz options the day before the ketchup maker agreed to sell itself for $23 billion.


In an SEC application to freeze the defendants' assets, dated February 15 but filed with the court Wednesday, staff attorney David Brown said the commission had been told by Goldman that "the account holder is a Goldman Sachs Private Wealth client in Switzerland."


In another application also dated February 15 and filed Wednesday, Brown's colleague Megan Bergstrom said Goldman had informed the SEC "it does not have direct access to information about the beneficial owner or owners behind any particular transaction or position" in the account.

The minimum net worth to be a Goldman Private Wealth client in Switzerland is....

And now back to regularly scheduled Great Rotation as quadrillions in imaginary retail money flow into a stock market which was, is, and always will be a massive cesspool of inside information, with one name always reappearing at the top.

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Godisanhftbot's picture

 why buy the Junes?

The Juggernaut's picture

Zurich account?  ...Even after DC going after American citizens for tax dodging?  ...This was probably an American politicians account.

MiguelitoRaton's picture

My guesses: (a) John Kerry; (b) Jon Corzine...

icanhasbailout's picture

They were Senators together, so "both in collusion with each other" is also a distinct possibility.

The Juggernaut's picture

(c) Eric Holder... I like this game.  Lets see what politician receives the biggest Heinz donations/lobbiest reach-arounds.

Careless Whisper's picture

...Goldman had informed the SEC "it does not have direct access to information about the beneficial owner or owners behind any particular transaction or position" in the account...

A secret numbered-only Swiss GoldmanSachs account, who could've guessed?

tip e. canoe's picture

they're stalling.
must be a big fish.

Joe Davola's picture

0.  Not named Soros?

1.  Are you a chick? (Martha Stewart Rule)

2.  Have you made any political contributions?

3.  Which party?

4.  How much?

Richard Chesler's picture

"Goldman Sachs Private Wealth" is a code word for "Stolen US taxpayer funds".

gmrpeabody's picture

Eric Holder is going to be all over this like stink on...,

Oh..., wait..

Thomas's picture

Look at Heinz shares for months before the announcement. Looks like somebody had a serious buy program in place.

Careless Whisper's picture

somebody? I hate to beat a dead horse, but Mister Suck-It-Up has been awfully quiet lately.


Jack Napier's picture

What do John Heinz and John Kerry have in common besides sharing a wife? They probably shared the same coffin in their initiation to the Brotherhood of Death. Of course Kerry would have told his fellow bonesmen in advance. Gotta grease those palms. 322 bitchez.

Dave Thomas's picture

Holy shit Mr. Munger looks like Jabba the Hut's son. Hey Banzi that's your cue!

TruthInSunshine's picture

If Goldman is being accused of wrong doing, I can assure all of you that Eric Placeholder will personally perform the medical examination of that Muppet cadaver depicted above, and conclude that he died of a self-inflicted gunshot wound to the very back center of his head.

Mary Jo White will take her cue from Placeholder's investigation, and the SEC will also clear Goldman of any impropriety or illegal activity.

Case closed.

JR's picture

Goldman Sachs has highly paid teams of lawyers whose job it is to protect the “bank” from lawsuits and/or criminal investigations.  And as soon as the news broke on the Heinz transactions, those lawyers were hard at work to find the protection they needed to get Goldman off the hook. Why else would you pay these guys if they can’t at least keep you out of jail?

It looks again as if Goldman is slipping out of the noose.

Thomas's picture

Fuckup delete. In its place, I'll mention in the context of Heinz what to watch for after a prostate biopsy--(hint: Heinz meets chicken choking.)

rosiescenario's picture

...uh, would you mind lifting that rug a bit for me, I am busy with the broom....

Cursive's picture

@Careless Whisper

How the hell does one file suit against an unknown defendant?  Is this from The Onion?

SmittyinLA's picture

if when you say "the Onion" you mean the federal government, YES its from the Onion.

earnyermoney's picture

I believe a water board treatment could extract the information.

sgt_doom's picture

Say, just for the record, wasn't the last Goldman Sachs crook to go to jail, Chelsea Clinton's former father-inlaw?

Just asking.....

Xibalba's picture

NOPE ... it was their wives.  


See!  All is fine here...move along.

hedgeless_horseman's picture



Kashya speaks...

“My interest in the HNZ purchase was motivated by the fact that it was at a record low and almost ridiculously cheap when priced in CHF.”


"It is a fact that 70 to 80 percent of the condiment consumption of my art gallery's bistro is catsup. The reason is that although the artists come from many different ethnic groups, no matter where they are from, everyone around the world loves catsup."

lakecity55's picture

a swift boater or a swift crook.

booboo's picture

you are correct that our chief negrotiator at the state department is behind this with a promise to funnel it back to Theresa.

rosiescenario's picture

....it is to teach the Russians to return phone calls....they, too, could have profited nicely had they called back....

outofhere's picture

What's the name of that congressman married to a ketchup bottle?  hmmmm

rodocostarica's picture

Right on GODISANHFTBOT? Why spend more and buy the June calls? This alone mayby says the tip off guy was not sure of the date or the GS account prick just wanted to make sure he was right or put off the SEC. Pretty fishy smelling all told.

RhoneGSM's picture

February would have aroused suspicion. This is no ordinary muppet. Sheehs!

Stoploss's picture


Motorhead's picture

Some "shitty deal" that was.

RacerX's picture

Tx ZH. I was wondering if this was ever going to come out.

"Private Wealth". So that's the codeword.

Anticipation: http://youtu.be/uoLoyg3JKRQ

imaginalis's picture

Well that's okay then. I was thinking some criminal activity had been carried out.

SeverinSlade's picture

How funny would that be if we found out that new Secretary of State John Kerry was a GS client that benefitted from this insider trade.

Vagabond's picture

It wouldn't be that funny... nothing would happen.

gmrpeabody's picture

I wouldn't worry too much about THAT ever happening...

nobusiness's picture

Can we ever get 2 days in a row down??  Looks like they are trying to stop it

WTF_247's picture

2 days down = panic time.  They cannot have that.

Bernanke is probably in the futures market buying the crap out of it to close it positive.

10 days up in a row is totally fine though - that is what is intended.

nobusiness's picture

Never mind it's a Goldman Client.  back to the porn

pods's picture

Probably the same group that bought puts on the airlines right before 911.


Kitler's picture

No need to investigate if they have no known ties to Al Qaeda.

Probably just someone who has access to 'Omnivore'.


helping_friendly_book's picture

Kitler is back!

Your avatar has been missed.

A. Magnus's picture

If you remember the 7/7 London bombings there were a shit ton of British Airways shorts piled on in the weeks before that little false flag as well - nobody ever got called out on those either...


rosiescenario's picture

...ok, so someone should be checking to see if there were unusual puts bought on Carnival a few weeks ago?


Could be the handiwork of a 'pro-active' short seller?