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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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Thu, 02/21/2013 - 16:20 | 3264571 Godisanhftbot
Godisanhftbot's picture

 why buy the Junes?

Thu, 02/21/2013 - 16:23 | 3264590 The Juggernaut
The Juggernaut's picture

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

Thu, 02/21/2013 - 16:27 | 3264617 MiguelitoRaton
MiguelitoRaton's picture

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

Thu, 02/21/2013 - 16:31 | 3264632 icanhasbailout
icanhasbailout's picture

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

Thu, 02/21/2013 - 16:37 | 3264651 The Juggernaut
The Juggernaut's picture

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

Thu, 02/21/2013 - 16:40 | 3264661 Careless Whisper
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?

Thu, 02/21/2013 - 16:42 | 3264676 tip e. canoe
tip e. canoe's picture

they're stalling.
must be a big fish.

Thu, 02/21/2013 - 16:46 | 3264697 Joe Davola
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?

Thu, 02/21/2013 - 16:51 | 3264714 Richard Chesler
Richard Chesler's picture

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

Thu, 02/21/2013 - 17:04 | 3264759 gmrpeabody
gmrpeabody's picture

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

Oh..., wait..

Thu, 02/21/2013 - 17:22 | 3264821 Thomas
Thomas's picture

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

Thu, 02/21/2013 - 18:14 | 3264989 Careless Whisper
Careless Whisper's picture

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

Thu, 02/21/2013 - 19:34 | 3265230 Jack Napier
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.

Thu, 02/21/2013 - 20:31 | 3265399 Dave Thomas
Dave Thomas's picture

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

Thu, 02/21/2013 - 17:24 | 3264826 TruthInSunshine
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.

Thu, 02/21/2013 - 18:41 | 3265073 JR
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.

Thu, 02/21/2013 - 17:25 | 3264827 Thomas
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.)

Thu, 02/21/2013 - 22:47 | 3265730 rosiescenario
rosiescenario's picture

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

Thu, 02/21/2013 - 16:43 | 3264683 Cursive
Cursive's picture

@Careless Whisper

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

Thu, 02/21/2013 - 17:16 | 3264797 SmittyinLA
SmittyinLA's picture

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

Thu, 02/21/2013 - 16:45 | 3264689 earnyermoney
earnyermoney's picture

I believe a water board treatment could extract the information.

Thu, 02/21/2013 - 17:08 | 3264771 sgt_doom
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.....

Thu, 02/21/2013 - 16:33 | 3264642 Xibalba
Xibalba's picture

NOPE ... it was their wives.  


See!  All is fine here...move along.

Thu, 02/21/2013 - 16:51 | 3264701 hedgeless_horseman
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."

Thu, 02/21/2013 - 16:52 | 3264717 earnyermoney
earnyermoney's picture

LOL. Nice

Thu, 02/21/2013 - 16:59 | 3264742 resurger
resurger's picture

The cougar on prowl, put some of that HNZ on me...

Thu, 02/21/2013 - 17:04 | 3264757 ptoemmes
ptoemmes's picture

Dammit, it's ketchup.

Thu, 02/21/2013 - 17:19 | 3264808 McMolotov
Thu, 02/21/2013 - 16:48 | 3264706 lakecity55
lakecity55's picture

a swift boater or a swift crook.

Thu, 02/21/2013 - 17:38 | 3264878 booboo
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.

Thu, 02/21/2013 - 22:49 | 3265736 rosiescenario
rosiescenario's picture is to teach the Russians to return phone calls....they, too, could have profited nicely had they called back....

Thu, 02/21/2013 - 19:09 | 3265144 outofhere
outofhere's picture

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

Thu, 02/21/2013 - 17:13 | 3264788 rodocostarica
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.

Thu, 02/21/2013 - 17:25 | 3264833 RhoneGSM
RhoneGSM's picture

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

Thu, 02/21/2013 - 16:21 | 3264577 Stoploss
Stoploss's picture


Thu, 02/21/2013 - 16:33 | 3264639 Motorhead
Motorhead's picture

Some "shitty deal" that was.

Thu, 02/21/2013 - 16:21 | 3264579 RacerX
RacerX's picture

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

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


Thu, 02/21/2013 - 16:21 | 3264580 imaginalis
imaginalis's picture

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

Thu, 02/21/2013 - 16:23 | 3264585 SeverinSlade
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.

Thu, 02/21/2013 - 16:39 | 3264665 Vagabond
Vagabond's picture

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

Thu, 02/21/2013 - 17:09 | 3264777 gmrpeabody
gmrpeabody's picture

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

Thu, 02/21/2013 - 16:22 | 3264588 nobusiness
nobusiness's picture

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

Thu, 02/21/2013 - 16:26 | 3264607 WTF_247
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.

Thu, 02/21/2013 - 16:25 | 3264603 nobusiness
nobusiness's picture

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

Thu, 02/21/2013 - 16:25 | 3264604 Number 156
Number 156's picture

Dark Pools?

Thu, 02/21/2013 - 16:26 | 3264608 pods
pods's picture

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


Thu, 02/21/2013 - 16:40 | 3264659 Kitler
Kitler's picture

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

Probably just someone who has access to 'Omnivore'.

Thu, 02/21/2013 - 17:12 | 3264785 helping_friendl...
helping_friendly_book's picture

Kitler is back!

Your avatar has been missed.

Thu, 02/21/2013 - 17:45 | 3264902 A. Magnus
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...


Thu, 02/21/2013 - 22:52 | 3265742 rosiescenario
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?

Thu, 02/21/2013 - 16:27 | 3264618 PontifexMaximus
PontifexMaximus's picture

interesitng to see, what FINMA is doing, waiting for groundhog day or asking for details. Any bets? I hope that the account exec.  , who passed the order in the system is already looking for a new job. Unless "this" client was always having this trading pattern. Who knows....

Thu, 02/21/2013 - 16:29 | 3264625 reader2010
reader2010's picture

"If you're not inside, you're outside, okay?"  


- Gorden Gekko

Thu, 02/21/2013 - 16:32 | 3264633 Dr. Engali
Dr. Engali's picture

I am shocked! Shocked I tell you! I can't believe that all tentacles lead back to the squid.

Thu, 02/21/2013 - 16:32 | 3264638 NoWayJose
NoWayJose's picture

If Goldman doesn't have direct access to know who the owners are in the account, then HOW are they supposed to pay the proceeds of the trade?  Or report the gains to the IRS or other (Swiss) taxing authorities?  That answer, by itself, should be worth investigating.

Thu, 02/21/2013 - 16:52 | 3264716 Pseudo Anonym
Pseudo Anonym's picture

slush fund. no reporting.  it's distributed internally. 

Thu, 02/21/2013 - 16:34 | 3264647 Pseudo Anonym
Pseudo Anonym's picture

until it's revealed that

none other than a client of Goldman's

is just a numbered trading account of a goldman employee

Thu, 02/21/2013 - 16:46 | 3264692 Cursive
Cursive's picture

@Pseudo Anonym

Exactly.  It's the fucking Goldman Sachs Prop Desk bonus pool account.  When the name is revealed, it'll be something like Kaiser Souza or Dick Fitz or Anna Lingus or....

Thu, 02/21/2013 - 18:33 | 3265046 Godisanhftbot
Godisanhftbot's picture

 You know Anna too?

Thu, 02/21/2013 - 16:41 | 3264672 The Gooch
The Gooch's picture

. "Just got even MOAR fun"


Thu, 02/21/2013 - 16:43 | 3264679 buzzsaw99
buzzsaw99's picture

Another Lubrizol? What a coincidence! How do these things happen? Sokol rides again?

Thu, 02/21/2013 - 16:44 | 3264686 SmittyinLA
SmittyinLA's picture

maybe they just felt ketchup was under priced, have you noticed they now "ration" it out? 

Its always a good idea to invest in stuff that's "rationed" by the private sector (not on account of govt regulation) betting on govt regulation is filled with perils and should only be left to insiders-like GS. 

Thu, 02/21/2013 - 17:02 | 3264753 ebworthen
ebworthen's picture

Kind of like the red plastic Ketchup containers they have in restauraunts so it always looks full even if it is nearly empty; the stock markets are the red plastic container, the economy the little bit of ketchup left.

Thu, 02/21/2013 - 16:48 | 3264698 ziggy59
ziggy59's picture

So another minion gets his wrist slapped. Big deal. This hydra can be killed by cutting off its head, of course like the typical coward CEOs they knew nothing of this and the poor guy worked alone. Right.

GS. Aka Govt. Sax

Thu, 02/21/2013 - 16:48 | 3264699 scatterbrains
scatterbrains's picture

wow that was pretty quick of the SEC..  are they still looking for who ever bought that shit ton load of way way out of the money puts on Bear Sterns the same day the fed held a secret meeting to decide which banks will receive bail outs and which wont ?

Thu, 02/21/2013 - 16:50 | 3264710 “Rebellion to t...
“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

The Goldman account can be directly traced to the bastard child of Becky Quick and Warren Buffet.....Steve Liesman.

Thu, 02/21/2013 - 16:59 | 3264739 ebworthen
ebworthen's picture

A buyer in Zurich with a Swiss account.

How convenient!

Thu, 02/21/2013 - 17:01 | 3264746 Manipulism
Manipulism's picture

they have no clients, only muppets.

Can muppets buy options by themselve?

Only when the muppetplayer let the muppet do it.

Thu, 02/21/2013 - 17:03 | 3264755 falak pema
falak pema's picture

zurich gnome, breed of frog legs worth sizzling in frying pan! 

Thu, 02/21/2013 - 17:09 | 3264778 Herkimer Jerkimer
Herkimer Jerkimer's picture





Revenge of the Muppets!



Thu, 02/21/2013 - 17:11 | 3264783 sgt_doom
sgt_doom's picture

Has to be either Hank Paulson or the usual dood, Stephen Friedman.

Bets, anyone??????

Thu, 02/21/2013 - 17:14 | 3264791 MillionDollarBoner_
MillionDollarBoner_'s picture

Can't identify who it is, huh?

Gimme a water board, a blowtorch and some pliers. Oh, and half an hour alone in a secluded room with Lloyd.

I'll get the name for you ;o)

Thu, 02/21/2013 - 17:20 | 3264811 Zer0head
Zer0head's picture


Thu, 02/21/2013 - 18:47 | 3265089 Henry Hub
Henry Hub's picture

You must be a foreigner. We here in the U.S.A. don't go in for those kind of tactics.

Thu, 02/21/2013 - 17:17 | 3264801 Zer0head
Zer0head's picture

Heinz has established a strong system of corporate governance to ensure the Company is accountable to shareholders and the community, and that it operates in an ethical and socially responsible manner.


that's good enough for me and I am sure it is good enough for these illustrious groups


What about 3G - another illustrious group who without doubt adhere to only the hightest standards


and don't even ask - the guy is a god

(BaNZAI is that your work?)




Thu, 02/21/2013 - 17:34 | 3264865 Let The Wurlitz...
Let The Wurlitzer Play's picture

Maybe it was Warren (the oracle) himself.  Was he just in Davos running his mouth???



Thu, 02/21/2013 - 18:01 | 3264954 nasa
nasa's picture

"You fucking serfs need to learn to mind your own fucking business.  We are doing God's work and we ain't got time or the need to explain anything to you."


The .001%

Thu, 02/21/2013 - 18:06 | 3264966 ZeroAvatar
ZeroAvatar's picture

So it wasn't just some normal stiff with a Tradeking account that got lucky?


I was SURE it was on the up and up.  (RIP: Kermit)

Thu, 02/21/2013 - 18:15 | 3264993 Downtoolong
Downtoolong's picture

Because private wealth clients with Swiss accounts pay fat commissions and all that damned Kermit did was tell us stupid jokes.

How else are we supposed to make bonus when we can’t let our preferred clients pick securities to short to the Muppets anymore?



Thu, 02/21/2013 - 18:15 | 3264994 MrBoompi
MrBoompi's picture

No wonder the SEC is acting like it wants to do something.  A foreigner or two is involved.  If it was just Warren or Lloyd, they wouldn't give a shit.  They would just expect the normal cut.



Thu, 02/21/2013 - 18:39 | 3265067 I am a Man I am...
I am a Man I am Forty's picture

Doesn't have direct access means they would have to pick up the phone and call the zurich office.  Or shoot them an email to find out......

Thu, 02/21/2013 - 19:54 | 3265303 fuu
fuu's picture

Marla Singer: It's a muppet doll. Someone loved it intensely for one day, and then tossed it. Like a Christmas tree. So special. Then, bam, it's on the side of the road.
[Grabs Narrator's crotch]
Marla Singer: Tinsel still clinging to it. Like a sex crime victim. Underwear inside out. Bound with electrical tape.

Thu, 02/21/2013 - 20:30 | 3265395 Lost Wages
Lost Wages's picture

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

What is it? I have no idea.

Fri, 02/22/2013 - 03:58 | 3266286 godzila
godzila's picture

Most likely they won't open an acocunt bellow 1mio CHF

Thu, 02/21/2013 - 20:43 | 3265427 godzila
godzila's picture

Just wondering - who has juridiction in such a case ?

Fri, 02/22/2013 - 01:58 | 3266093 hooligan2009
hooligan2009's picture

miss piggy would be more appropriate! i wonder whose fingers smell of...pork? do you any beanz and ketchup with that?

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