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Head Of China's 'Goldman Sachs' Probed For Insider Trading As "Market Purification" Continues
Imagine for a moment the sentiment shock for mainstream Americans if Goldman Sachs' Lloyd Blankfein was probed for insider-trading and publicly scapegoated for causing a nation's equity market (and economy) to collapse. While it may be true, it would never happen in America... But in China, as part of what authorities call "purifying the markets," the president of China’s biggest brokerage has been swept up in a widening campaign to root out financial wrongdoing and assign blame for the nation’s $5 trillion stock rout. As Bloomberg notes, shares are falling further in today's markets as the probe of Citic Securities President Cheng Boming comes after the state-run Xinhua News Agency reported last month that four executives at Citic had admitted to so-called insider trading.
Since the market crash, China’s targets have ranged from so-called “malicious” short sellers to a journalist from business magazine Caijing whose report was alleged to have caused market panic. Authorities say they want to “purify” the market.
“There does seem to be a bit of a witch hunt for a scapegoat at the moment, but I think this is mostly signaling by the authorities that they will not tolerate what they perceive as ‘unhelpful’ selling in the market,” Tony Hann, a London-based money manager at Blackfriars Asset Management, which oversees about $350 million, said in an e-mail.
Citic confirmed the police investigation of Cheng in a statement to Shanghai’s stock exchange. A brokerage spokeswoman declined to comment further.
...
“The rumor of this investigation had already been on the streets for some time,” said Castor Pang, the head of research at Core-Pacific Yamaichi Hong Kong, referring to the Cheng probe. “The central government may use this case to accelerate its probe into insider trading and tighten regulation further.”
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Citic shares are hitting fresh 11-month lows...
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Hang that bastard and issue the arrest warrants for Lloyd Blankfein and Jamie Dimon.
Moral hazzard on the rise If china cleans house first then they may be in better shape to gain popularity for their yuan as researve currency. Only the US may be forced into higher interest rate just to compete. Stock may need a haircut to fund teasuries as well.
This is war! You just don't do this to a Squid executive! Buy
If we could get 20 or 30 thousand Type 1 Hazmat operators to attend to New York, London, Basel and Frankfurt, we might be able to purify our markets, too.
He'll probably get a bullet to the back of the head...
If only we had the courage to do the same to Blankfein and his ilk.
sounds like this https://www.youtube.com/watch?v=Yq3N46ciKJw :D:D:D:D
Why would you want to purify markets? You are trying to snatch away people's competitive edge and really, you shouldn't follw in the commies' footsteps.
Higher US interest rates are said to cause the mega-crash that everyone fears, because it'll make 1929 look like a picknick. It's the debt burden of countries, they say; there will be many more Greeces and Ukraine. I would not have believed that years ago but do now. The wars and refugees cost and the people can't be left to starve on the sidewalk, schools must still operate etc. Expenses can be influenced only a little. We are in for a wild ride unless the non-productive expenses for warfare can be cut and even then, it might not be enough. I'm warming to China; it is a good way to go.
My mortgage to Citimortgage os gone. They no longer have any leverage on me.
I'm looking forward to the wave of, soon to be, assassinations of Citibanksters on public streets in every town across the US.
These thieves should hang, slowly, with piano wire, one inch above the dirt, after a slow hoist.
[I wish that fate on everyone in goobermint.]
Still need about a thousand or so gallons of water. Working on it.
Terms like "market purification" scare me because they are euphemism created by government and ring of a tone like ethnic cleansing, enhanced interrogation techniques, smart bombs, etc. Those terms usually result in greater nefarious actions by governmemts and far worse than they intended.
Hoepfully, this does as it is intended (to run interference on the vampire squid) and not as a mechanism to extort bribes from Goldman. This would be unlike our Justice Department who hands down fines to extort the corrupt companies. Justice Department . . . another government euphemism. They should be called the Department of Thuggery.
insider what? trading? never heard of him. sorry.
ALERT: allegedly bourgeois traders have infiltrated the markets and society at large!! The Red Guard (the color in China for an "up" market) will enforce the doctrine of "Up and To The Right" by purging evil speculators and sellers. Evil western economic policies will not be tolerated in the Great Leap Upward!
Irony off - if you want more background in the current tough-ass anti-western regime now in China - this Jim Chanos talk is a must-listen for ZH'ers. Instead of a Great Leap Forward it looks like more of a nationalistic Large Step Backward coming up:
https://soundcloud.com/robenfarzad/chanos-on-china
It won't be a 'large step backwards'
It will be a retreat, an actual rout.
I have read insider trading there is rampant. That's one reason no one trusts their stawk market. If Jingping can control that, perhaps investors will return but that's a big if.
However, if they hang 8 GS corrupt bankers, people will feel alot more confident since "8" is a lucky number in China from what I've heard.
I have read that members of the US Congress are allowed to do insider-trading legally and that it happens all the while on Wall Str and at the Fed, with ZERO attempt to stop it.
In short: there is an endemic culture of corruption ... and not forgetting London, Frankfurt and Brussels.
At least Beijing and Moscow seem to be trying to rein-in the "greed is good" sociopaths who comprize about 6% of any population and who rise like scum on a cess-pit, unless sunk by people of principle.
Well, I'm shocked.
All roads to financial ruin lead to Goldman. Follow the yellow brick (gold) road to find the ()man behind the courtain.
Anything to prop up those 50 PE stocks in an imploding economy.
Tyler, please stop calling it malicious short selling. The Chinese may call it that to save all the characters needed to say "short selling while you still have a large long position in an account you don't think we know about."
And for your information, the characters for "insider trading' are the ones for a pork bun vendor and for a gerbil.
:oP
> Packed stadium execution
> Mobile organ harvester
Can we please arrest the scumbag bankers here in the US and do the same with them as the Chinese do? A bullet to the back of their head and a bill to their family for said bullet. Now that's justice I can get behind.
Read the headline wrong... thought it said... market putrification.
He must have missed that "secret meeting" on the roof of their headquarters.
Wondering who the new prime minister of Australia is?
http://www.theguardian.com/australia-news/2015/sep/14/malcolm-turnbull-a...
usually Chinese laws allows you to be under detention for up to 7 months while investigation goes on. Has happened to a number of executives including the head of Trafigura in Beijing who was also a Singaporean citizen
Hmmmm, let the purification begin...
This is how market failures caused by fraud and corruption -- and they are ALWAYS caused by fraud and corruption -- are handled, when governments are stronger than bankers. Or do you believe the tripe that medieval Europe's recurrent persecutions of the Jews were totally unjustified, in a time when Jews WERE the bankers?
Financial speculation ALWAYS fosters corruption. It's the nature of the beast, that things which are so very profitable, done behind closed doors where nobody can see, will corrupt. Corruption always leads to economic misallocations which have drastic consequences for real people in the real economy. Generally, it leads to peasants (that's PEOPLE) literally starving and dying as the consequence of bankers skimming off more profit than the real surplus of the economy. So a government which actually serves somebody -- anybody -- other than the bankers, has to periodically hang a few dozen of them, to keep speculation from getting permanently out of hand (as in, the U.S. today) and reduce the overall death rate from banker theft. This is what governments which ARE governments, DO.
Not like "governments" which are lackspittle toady fronts for the bankers themselves.
The Europeans of that age were very clever. When you persecute the bankers they don't loan you money. They loan money to your enemies.
That may have something to do with the rise of England.
http://www.zerohedge.com/news/2015-09-07/bed-despotic-house-saud#comment...
Evidently the bankers financed wars against their enemies. The banker haters were too clever by half.
My solution to the banker problem is simple. Don't borrow money from them.
SHCOMP up 4.9% last night.
See what happens when you make the selling of stocks a crime against the state? Genius I tell you. Why hasn't this been done before?
Citic Securities President Cheng Boming (sobbing): Insider trading? You mean like bouncing the yuan up & down like a yo-yo!?
Vice Minister of Public Security Meng Qingfeng (a cigarette dangling from lip, leans in and smiles): That insolence will cost you your last fingernail, comrade ;-)
I'm sure the bamboo shoots growing up Mr Chengs rectum are speeding up the "purification" process..
The Chinese have some pretty big balls interfering with God's financial minions. I wonder how God will respond. Plagues and pox, or a down grade?
CIA explosions will move from warehouses to government facilities.
..... if Goldman Sachs' Lloyd Blankfein was probed ......
let me savor the thought
His namre is Rroyd Brankflein.
Ooohhhh Yes. Him, Bernake, others abductied by "Aliens" with nuclear powered vibrating and spinning butt probes. Aliens record process and post on the Internet
Uh oh, sounds like somebody missed a kickback payment.
Go ahead and defaullt on your debt, we can back you up on that. But, miss a kickback payment and you're going to jail pal.
Funny. He doesn't look Jewish.
That's rayciss.
Rather than the corrupt and complicit SEC and Injustice Dept probing the heads of the too big to jail con artist companies they should all be having their bottoms probed by the inmates of the deparment of erections.
Rroyde Brankfein, he so sirry.
You see from the article's chart how Shanghai Composite took off in November 2014. Goldman Sachs must have wined and dined every large brokerage in China, telling them that when the West was permitted to own A shares, the market would go into orbit. The brokerages, with this info, made 80 million cold calls and signed up 40 million new customers. Both these Chinese farmers and Goldman Sachs bought stock.
Only Goldman started shorting their purchases and the Chinese farmers didn't know what that meant.
http://www.metrocorpcounsel.com/articles/32912/will-china-tighten-its-gr...
Cabal of Satan America backed by Pentagram of Evil (Pentagon) wrecking havoc on planet earth.
Decepticons Transformers.
Sacrificing peoples lives , harvesting souls
Devil at work
Beast of Revelation