"There Is No Chinese Wall. Please. Come On. This Is Wall Street"

Tyler Durden's picture

Remember the look on one's face when one hears there is no Santa Claus, or tooth fairy? That, more or less, is what the visage on everyone's favorite CNBC anchors Becky Quick, Joe Kernen and Andrew Ross Sorkin was, when Chris Whalen matter of fact (because it is a fact) let a rare glimpse of reality on the NBC Universal distraction and entertainment show, when he said "There is no Chinese Wall. Please. Come on. This is Wall Street." Awkward silence follows. And why not: if the banks officially call frontrunning an "Asymmetric Information Initiative" to mask the simple illegality from the idiot regulators, why not call a spade a spade, and expose one more aspect of the lies and crime that is shoved down investors' throats every single day.

Yet once again, this is certainly not news. From January 2011:

Merrill Gets $10 Million Fee For Commingling Prop And Flow Traders And Frontrunning Clients


Ever since Zero Hedge's advent just over two years ago, one of the most improper things we claimed happened routinely on Wall Street, was that the big banks' prop traders would consistently, and completely against regulations, populate their massive trading floors with both flow and prop traders, who often sat side by side, within earshot and front run the big clients' orders. Some may recall that point #8 of our follow up query to Goldman's Lucas van Praag in December 2009 was precisely a request to get the seating chart together with assigned responsibilities of all Goldman traders. To wit: "we are still hoping to get a seating chart of Goldman's trading floor (via legitimate channels) which clearly discloses flow and prop traders' seats in order to disclose to the general public that flow and prop traders do not share the same information flow, especially that emanating from core clients who tend to move markets the second they announce their trading axes to Goldman's flow traders." The reason we bring it up is that once again we seem to have been just a year ahead of the curve. In a just announced settlement, the SEC has fined Merrill, and supposedly its insolvent Bank of Calcutta taxpayer funded holdco, $10 million for doing precisely this! From Bloomberg: "The SEC found that Merrill operated a proprietary trading desk from 2003 to 2005 on the firm’s main equity-trading floor in New York, where market makers received and executed customer orders. While Merrill told clients their order information would be used on a need-to-know basis, proprietary traders got information and used it to place trades on Merrill’s behalf after executing the customer orders, according to the statement"...... So... does everyone finally understand how Goldman's (et al) prop group has no trading loss day (at near 50% margins) every single day year after year now?


Fast forward to 9:30 into the clip below.

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akak's picture

OK, allow me to be the first to ask the obvious question here:

What the Hell is a "Chinese Wall"?

(AnAnonymous, is this more of your creeping Chinese citizenism?)

There is nothing more annoying than the flippant and casual use of obscure jargon.
Unless, of course, it is the offhand use of self-defined phrases and figures of speech that only the speeker understands (see the posts of AnAnonymous for examples of such).

Fred Hayek's picture

It's a purported division between the left side and the right side (or between divisions or groups or whatever the nature of the split is) of a company where the two aren't supposed to know any details about each other's workings such that they function just as thought the other's work was at a different company.

Michael's picture

You reach a moment of clarity of thought for only very few moments in your life.

When you do you can't make it last for more than a few minutes a day because you are mentally deficient.

 That's why you get what you get, not what you want.

Oh regional Indian's picture

Down arrows for good philisophy. Micheal called it. You, me, we're all Eyes Wide Shut!

There is no Chinese Wall.

There is no cookie monster.

There is no Santa Clause.

There is a Foreclosure Clause.

The Tooth Fairy weilds a Drill.

Soldier man/hero pop's a pill.

Why was the Atomic Bomb a Manhattan Project?

Or like Now, did they Just take a bit off the top of the Manhattan Transfer?



Michael's picture

Thanks for acknowledging one of my rare moments of clarity ORI.

Oh regional Indian's picture

:-)  OT or other-wise, in my book you usually call it Michael.


derek_vineyard's picture

i had a moment of clarity but i forgot what i visualized



slewie the pi-rat's picture

no doubt there will be many encores

Michael's picture

You're just inviting complete and total economic collapse if you're not preparing as a nation for worldwide economic collapse.

I'm talking on the local level too.

spanish inquisition's picture


" Everybody knows that the dice are loaded Everybody rolls with their fingers crossed " ...

JPM Hater001's picture

Everybody knows that the war is over
Everybody knows the good guys lost

LeBalance's picture

please point out those "good guys."

oh...the idiots?

AldousHuxley's picture

history has shown that good may not prosper time to time but they survive in the long run  over one hit wonder evil dictators.


because evil need good to stay in power. when evil kills all good, evil just becomes average.



CoolBeans's picture

Love the screen name.

Hate those bastards.

toothpicker's picture

The war is far from over. It's constant. And to most: invisible

derek_vineyard's picture

producing jobs must be brought back to the western world...but who the hell wants to do them for what they pay?

the most chosen alternate is to use miltary might to take goods we desire from other lands

but this shell game of corporate leadership and politicos basking in luxury is bull shit (look at google's power grab this week), absolute power corrupts absolutely----and borders means less and less as the 1% internationally unify against the global serfdom

aw, fuck it, their is no solution except wholesale revolution

Unprepared's picture

... and triple underligne the word "purported". The only wall I've seen is the building access card.

Buckaroo Banzai's picture

Wall street is a rigged game, and always will be. The insiders will ALWAYS have better information than the outsiders, and they will ALWAYS figure out a way to act on it, no matter what regulations are in place. You'd have to fund the SEC with $100 billion a year before they would have a chance -- aint gonna happen.


RECISION's picture

The SEC's job is not to prevent insider trading.

The SEC's job is to ensure that outside agencies are not allowed to investigate corporate criminal activity.


cossack55's picture

I thought it was to download porn.

Stuck on Zero's picture

The job of every government regulatory agency is to protect the criminals from the public.

Winston Churchill's picture

Exactly.Orwellian Newspeak.

Dept.of Labor =unemployment.



stocktivity's picture

Exactly....for us small fries ....It's all Bullshit!

BandGap's picture

You assume Wall Street always will "be".

Giving the SEC more funding won't solve anything at this point. When even obvious indiscretions take forever to bring to light and be acted upon then the mindset for enforcement of the rules is all wrong.

Gully Foyle's picture

Buckaroo Banzai

Everything is a rigged game, two people will always conspire to have an advantage over others.

That's human nature.

The problem is everyone knows this and still pretends there is "fairness" and "honesty" in the world.

KickIce's picture

The problem is a judicial system that allows it.

When all 3 branches work in concert checks and balances go out the window.

LetThemEatRand's picture

Let me guess...  You think Akak is a smart guy in other contexts.

zuuuueri's picture

'chinese wall' is a common name outside the US for what in the us is usually called the great wall of china. it's often used as a term for some kind of strongly impassable barrier.  i'd think that even most people in the states would get the reference.

Yes We Can. But Lets Not.'s picture

It is called Chinese in acknowledgement of it's flimsy, easily penetrated nature due to use of poor quality materials and workmanship. Think Chinese drywall.

Gully Foyle's picture

Yes We Can. But...


On November 23, 2009, CBS News reported that they had done a drywall study to compare American and Chinese drywall. Random samples of new American-made drywall in six U.S. cities, new Chinese-made drywall from China, and samples of drywall from five damaged U.S. homes were collected and sent to the University of Florida to be tested by a team of researchers led by professor Tim Townsend, a scientist and leading expert on the effects of drywall on the environment. The report results stated:

"As expected, the contaminated Chinese samples gave off high levels of sulfur gases. But all but one of the U.S. samples emitted sulfur gases, as well - not at levels as high as the defective Chinese product, but unexpected. Perhaps more surprising, "There were some American products that we tested that had higher emission than some of the new Chinese products that we tested."[20]
blindman's picture

@"There is nothing more annoying than the flippant and casual use of obscure jargon.
it is a cream and cottage industry. it has become the law and is
just as repugnant and annoying, a post modern form of obscenity.

Tompooz's picture

"Chinese Wall" . Another name for  the corpus callosum between the right-brain and the left-brain hemispheres of Wall Street squids.

AnAnonymous's picture

(AnAnonymous, is this more of your creeping Chinese citizenism?)


Indeed. That is my doing. I have that long arm reach.


The excuses US citizens can invent to dilute their responsibility, what fantasy they are ready to accept.

Made me laugh.

Especially as a chinese wall is a direct derivated from one US citizenism concept: division of power.

But hey, it has to be alien. Cause there is the word Chinese in it, and Chinese citizenism, that fantasy, is what drives the state of the world and not the reality of US citizenism.

prole's picture

Your reach is long. You have bored people on two continents with your inane posts. Do you have a point? Do you get paid to post so you are not concerned with the empty content of your posts? Or are you on obsessed psycho, or should I say sicko, who studied and learned engrish so he could vent some weird hatred online against the source of all your hate?

You are basically an obsessed stalker. You are the online John David Chapman.

AnAnonymous's picture

Empty content? Bored?

Because you as a US citizen can say nothing to destroy basic observations on US citizenism does not mean there is no content.

It simply means that true to your US citizen nature, you cant handle the reality just at hand and that you have to fabricate a fantasy world to mediate between you and reality.

Kicking the can... US citizens excell at that.

Just as the other US citizen who had to imagine an incredible excuse to cover for his ignorance (while google is your friend), you just have to project a fantasy on observations on US citizenism.

That one has to be a Chinese to report observations on US citizenism.

That is a matter of emotion (love, hate) and not rational analysis

US citizen nature is eternal.

prole's picture

I didn't read your post (nobody does) but I heard the suicide nets are down on the FoxConn roof for the next half-hour.  You can show the world your passion and dedication to your cause and get out your important message about blobbing and US citizenantics .. Now is not the time for hesitation!!

slewie the pi-rat's picture

A2 has been certified by slewie

but, he won't hurt anyone and is also artistic

yeah;  he's out there

maybe he is like a sculptor, hammering away at a ginormous block of citizenism, covered in fine dust, ruining what is left of his health

apparently, it is a very unforgiving medium

TheFourthStooge-ing's picture

The great artists are never appreciated in their own time.


prole's picture

Well either way- he's either jumped from the Foxconn Tower as a powerful geo-polictical statement on my suggestion, or he's stuck midway through his 58 hour shift with no bathroom breaks cranking out I-Pad3's ...(for us!lol) 

Either way we get a well deserved rest from his tiresome BullShit.

Think for yourself's picture

I think that you start wanting to make some kind of point but always get sidetracked in your rhetorical criticisms of US citizenism.

I believe that when you speak about US citizenism you talk about citizens under the 14th amendment - those who are assets of the corporation of the united states, rather than Americans. Is that correct?

If that's the case (or close to it) then you might want to revise your communication method,  maybe refer to it in other words, define it in ways that other people might understand. What you're doing now is constantly painting the picture in invisible ink that can only be seen by the glasses of the subjective, personal connotations embodied in the words you're using.

Anyways... sure, matrix-dwellers will use any cognitive dissonnance method available in the confirmation bias toolbox to convince themselves taking the little blue pill was the right choice and that there is still no need to take the red one. What's your point?

Cathartes Aura's picture

perhaps AnAnonymous uses "US citizenism" as a label that the majority within the "US" willingly adopt and apply to their existence - identifying with the imaginary nationstate created to pen & harvest those who can't image-in themselves as any Thing else.

as long as one is irritated by the harmless words, and then defends their status as US citizens, then the label apparently fits.

together with all the actions, globally, that US citizens impose.

jwoop66's picture

Bravo, Prole!   I don't think you get it, though.  Anons posts aren't supposed to be coherent or logical;  You just read them fast and when you see "citizenism" you do a shot.    It's fun!

Gully Foyle's picture


"But hey, it has to be alien. Cause there is the word Chinese in it"

Dude at least there is still Chinese food, unlike Freedom Fries.

jblack010's picture

In 1881, the Pennsylvania Railroad brought passenger service into the center of the city, and constructed the first Broad Street Station just west of City Hall. The sea of iron pillars holding up the PRR's elevated trackbed was replaced in the 1890s by a 10-block stone viaduct to the Schuylkill River. This created a block-wide barrier known as The Chinese Wall, cutting the western portion of the city in half and discouraging development there.

Peter Pan's picture

The motto of the financial industry can be best summed up as follows:

"Let us turn your money and our experience into our money and your experience."

Do I need to say more?