Frontrunning: December 20

Tyler Durden's picture
  • FBI Runs ‘Perfect Hedge’ to Nab Inside Traders (Bloomberg)
  • Japan in Talks With China About Purchasing Government Debt (Bloomberg)
  • Bankers Seek to Debunk ‘Imbecile’ Attack on Top 1% (Bloomberg)
  • UK rejects EU pleas to boost IMF coffers (FT)
  • Spain borrowing costs dive, ECB loans seen at work (Reuters)
  • Dexia Sells Off Luxembourg Division (FT)
  • Japan Plans to Bolster Intervention War Chest (Bloomberg)
  • South Korea Says to Supply Liquidity if Needed (Reuters)
  • House Republicans Push For New Payroll Tax Cut Talks (Reuters)

European economic news:

  • UK Nationwide Consumer Confidence for November 40 – higher than expected. Consensus 36. Previous 36.
  • Germany GfK Consumer Confidence Survey for January 5.6 – higher than expected. Consensus 5.5. Previous 5.6.
  • Germany Producer Prices for November 0.1% m/m 5.2% y/y – in line with expectations. Consensus 0.1% m/m 5.2% y/y. Previous 0.2% m/m 5.3% y/y.
  • Germany IFO - Business Climate for December 107.2 – higher than expected. Consensus 106. Previous 106.6.
  • Germany IFO - Current Assessment for December 116.7 – higher than expected. Consensus 116.0. Previous 116.7.
  • Germany IFO - Expectations for December 98.4 – higher than expected. Consensus 97.0. Previous 97.3.
  • Italy Industrial Orders s.a. for October -1.6% m/m – lower than expected. Consensus -1.3%. Previous -8.3%. Revised -8.2%.
  • Italy Industrial Orders n.s.a. for October -4.8% y/y – lower than expected. Consensus -1.2%. Previous -3.6%.
  • Italy Industrial Sales s.a. for October 0.1% m/m. Previous -5.4%. Revised -5.5%.
  • Italy Industrial Sales n.s.a. for October 1.1%. Previous 1.9%.
  • Sweden Riksbank Interest Rate 1.75% - in line with expectations. Consensus 1.75%. Previous 2.00%.
  • Switzerland Trade Balance for November 3.0B – higher than expected. Consensus 2.0B. Previous 2.15B. Revised 2.16B.
  • Switzerland Exports real s.a. for November -6.8% m/m. Previous 1.3%. Revised 0.9%.
  • Switzerland Imports real s.a. for November -7.7% m/m. Previous 1.4%.

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f16hoser's picture

Is the FBI nabbing US Politicians? No wait, frontrunning is legal for them. No wonder they passed the NDAA so they can arrest anyone who complains about US politicians. Crap, I'm outa-here bitchez!

GeneMarchbanks's picture

'Bankers Seek to Debunk ‘Imbecile’ Attack on Top 1%'

Wow. I can see they understand that it's a sensitive issue...

youLilQuantFuker's picture

Fuck those FBI scumbags. They missed the real mafia. On purpose no doubt. Operation Spin Control. Fucking sock puppets.

On another note.
Lets have a daily survival thread. I'll start. When the SHTF one of the most important things you'll need is fuel. Here's a howto on how to make canned sterno from sea shells. This is important for cooking, trading, heating your cardboard box(living quarters).

Get yourself some sea shells, and then smash them up, put into a tin can and roast them on a fire, then grind to a fine powder.
Add this to some vinigar, then when the fizzing stops, filter and evaporate in the sun, you will have calcium acetate.

Sterno Ingredients:

Calcium Acetate
6 oz tuna can or cat food can
2, Clean 35 milimeter film canisters
Coat hanger (strong metal)

Mixing Procedure:

Mix 11 Miligrams of Calcium Acetate (1/2 a film canister) with 10 mills of water. (fills up the canister) Then shake for 10 seconds, let it sit for approximately one minute then shake once more for 10 seconds, make sure the Calcium Acetate is completely dissolved. Measure 10 mills of the solution and pour into can. Slowly add 40 mills of ethanol. As you add the ethanol, the mixture should "Gel" instantly. At this point I poured off any remaining Ethanol (a very small amount, looked like about 1/10 of an oz.) Because this mixture gels instantly, you do not have to combine the two until you need to use it for cooking Once the solution has Gelled (approximately instantly), it is ready to use.

Snidley Whipsnae's picture

RE: 'Bankers seek to Debunk 'Imbecile' Attack on top 1%...

"“Instead of an attack on the 1 percent, let’s call it an attack on the very productive,” Allison said. “This attack is destructive.”

Other than financial catastrophe, what have these azz hats produced?

GeneMarchbanks's picture

Um, let's see: ABS,CDO,CDS,MBS,CNBC,MSNBC,FOX,GE,SAP,BAC,JPM,EFSF,FED,UAE,MFG,AIG  and various other acronyms we cannot do without like TARP. Not only do they produce works of amazing intellectual labor but they save the world. See: Gordon Brown, Hank Paulson, Ben Bernanke.

Snidley Whipsnae's picture

Let's not forget AIG and those great SIVs that allow the 'world savers' to obscure operations in the clouds.

Timmy and Ben ducked the heat in this article... Maybe they will throw a banker or two under the bus to appease the protesters? ... Nah, not yet.

Bananamerican's picture

"...the pipeline of tips flowed from the U.S. to Europe and even Taiwan. Evidence from recent cases showed that hedge fund managers sent inside information using encrypted e-mails, spoke on pre-paid mobile telephones and used portable flash drives.

To create a pretext for their insider-trading, fund managers often conducted “cover” trades and cited analyst reports as a motive for buying or selling.

Use of wiretaps had an additional benefit: it allowed the targets of an investigation to unwittingly explain complex, multimillion-dollar transactions, making schemes easier for jurors to understand and refuting defendant claims that trades were based on a composite, or “mosaic” of publicly-available information.

Gordian Knot

“The ‘mosaic theory’ was a Gordian knot and the best way to cut through that knot was through wiretap techniques,” said Ray Lohier, (Manhattan U.S. Attorney’s Office). Lohier, who called the mosaic defense a “fig leaf,” made the comments at a recent insider-trading conference. He is now a federal judge with the U.S. Court of Appeals in New York.

Soon after starting Perfect Hedge, the FBI determined that insider trading was a business model at some hedge funds, Chaves said. The industry manages $1.97 trillion in assets, according to Hedge Fund Research Inc. in Chicago.

The landscape of securities fraud crimes was changing, informants were telling the FBI in 2007. So-called boiler-rooms, where corrupt brokers bilked investors by manipulating stocks, were giving way to insider-trading.

Chaves said defendants charged in so called “pump-and- dump” schemes knew something bigger was going on.

“They seemed to know people in hedge funds or analysts in the industry, and were aware of the passing of material, nonpublic information between hedge funds, analysts and company insiders,” he said.

‘Couldn’t Get In’

At first, the FBI considered sending an agent to work undercover at one of the suspected hedge funds, Chaves said.

“We couldn’t get in. It was such a closed industry -- much like an organized crime family -- that it was difficult for the FBI to either introduce an undercover agent or recruit a cooperator.”

midgetrannyporn's picture

Fuck Dimon

Fuck Bloomberg

Catullus's picture

That Bloomberg FBI article is such a fluff piece.  How anyone can believe this bullshit is beyond me.  They were probably looking at how much money was being made, wanted in on the action, illegally wiretapped (no "excessive" profit-making is not probable cause), and then were looking to blackmail people on the nebulous "insider trading" laws.  They planted people at hedge funds?  What more else do they do?

They brought 56 people up on charges and 50 plead guilty because they don't want their assets frozen.  This is a farse.

youLilQuantFuker's picture

I likey how you tink. Maybe a few of the g-men had daytrade accounts.

Shathawk's picture

Mystery predators may have contributed to fiscal collapse in 2007: research

"The study has direct evidence. Through its analysis of stock market data not generally available to the public, namely the borrowing of shares, NECSI reconstructs the chain of events.

On November 1, 2007, the number of borrowed Citigroup shares jumped by 100 million shares, a value of almost $6 billion. Six days later, a similar number of shares was returned on a single day."

GMadScientist's picture

Hey Jamie, you, like the imbeciles, wouldn't exist without a bailout, so shut the fuck up about how smart you think you are for stealing faster, bitch.

Lmo Mutton's picture

50 of 54 is a perfect hedge?