Posts Tagged ‘indictment’

Wall Street Panics In Wake Of Galleon Insider Trading Case

Wall Street Panics In Wake Of Galleon Insider Trading Case

fleeCourtesy of John Carney at Clusterstock

Traders at hedge funds and Wall Street trading desks are quaking over the news that the FBI tapped the phone lines of Galleon founder Raj Rajaratnam. 

The news that the government is (finally) employing techniques typically used against organized crime or international drug cartels is raising fears about who might be next.

We spoke to traders at two prominent hedge funds who both described the feeling at their firms as “panicked.”

“Suddenly you are wondering about every conversation you’ve had about a public company, wondering if the Feds were listening in,” one trader said.

Traders spend a lot of time exchanging information with colleagues and reaching out to people in the industries they cover in hopes of gaining an edge. Rumors, gossip and loose talk are their bread and butter.

Raj RajaratnamMost of this is fair game. But if the ultimate source is an insider or the news is about a major deal that has yet to be announced, the trader can step into dangerous legal territory.

Even when traders learn inside information, there is usually little chance of getting caught. The SEC watches unusual trading activity but an active trader will usually get a pass if he’s buying or selling stocks that he usually trades in anyway.

Even those cases that do come up are hard to prosecute, especially if no one confesses. So occasional civil cases are brought but almost no criminal cases emerge involving traders.

This case shattered that pattern because the government used the tools it uses against hardcore drug criminals and terrorists to uncover the alleged insider trading.

Traders are now living in a very different world. Legally speaking, trading is far more dangerous than anyone knew.

Now see the scandal in photos >

See Also:

Raj Rajaratnam Funded Sri Lankan Terror Group

Galleon "Shocked" By Raj Rajaratnam Arrest

Will Raj Rajaratnam Spend 200 Years In Jail?

 

Previously, John Carney reporting:

Raj Rajaratnam, Founder of $3 Billion Galleon Group Hedge Fund, Arrested (GOOG, AMD, AKAM, CLWR)

Prosecutors and the FBI have announced that they have filed charges against several people involved with the Galleon Group hedge fund, including founder Raj Rajaratnam. Galleon is a major hedge hund player known for its investment in technology stocks…

Most notably, the government is filing criminal…
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Zero Hedge

Futures Jump, Gold Soars As Dollar Destruction Accelerates

Courtesy of ZeroHedge View original post here.

Everyone is piling into everything.

That's probably the best way to describe the market frenzy this week which has seen an all time high in the Nasdaq and gold, an all time low 10Y yields, and an S&P that is just shy of its all time highs.

Sure enough, on Wednesday, gold jumped to a new record high pushing further past $2,000...

... as the dollar tumbled on U.S. Treasury yields falling to fresh all time lows, and expectations of mo...



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Phil's Favorites

Dawg on the Wall

 

Dawg on the Wall

Courtesy of Scott Galloway at No Mercy/No Malice@profgalloway 

(originally pu...



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ValueWalk

2020: The Total Collapse Of American Society

By G.R. Oyper. Originally published at ValueWalk.

To lend some context to what I am about to say in this piece, I would like to begin with a brief discussion of the world, specifically America, as we know it currently in August of 2020. We have been ‘flattening the curve’ of Coronavirus (COVID-19) through the 15 Days to Slow the Spread initiative for exactly 140 days as of today, and it will be 141 days tomorrow.

Deaths where I live were statistically insignificant for the last several weeks, and across the U.S. broadly, deaths are down dramatically and hospitals are no longer at risk of being overwhelmed. They haven’t been at risk for some time now.

To put this even more pla...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Sunday, 29 March 2020, 07:00:37 PM

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Comment: Silver Shorts Are In a Bind | Ted Butler youtu.be/qQc0AoJp-Q8



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Comment: 5 Questions From You for Luke Gromen youtu.be/nVZD_fuxbQE


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The Technical Traders

THE MARKETS POST COVID AND DEBT MONETIZATION

Courtesy of Technical Traders

Chris joins Boom Bust host Sara Montes de Oca and Michael Pento of Pento Portfolio Strategies to talk FAANG, corporate earnings, the Feds, the growing US debt, and pandemic trading.  How will the markets react given permanent changes in how people work and live their lives? What will happen given the Feds strategy of debt monetization?

Learn more about our latest research and alerts on Gold, Silver, Oil, and Equities at www.TheTechnicalTraders.com.

...

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Biotech/COVID-19

There aren't enough batteries to electrify all cars - focus on trucks and buses instead

 

There aren't enough batteries to electrify all cars — focus on trucks and buses instead

Garbage trucks, buses and the van that delivers your Amazon purchases are all prime candidates for electrification. (Shutterstock)

Courtesy of Cameron Roberts, Carleton University

We need to change our transportation system, and we need to do it quickly.

Road transportation is a major consumer of fossil fuels, contributing 16 per cent of all human-caused greenhouse gas emissions, which warm up the Earth’s atmosphere and cause changes to the climate. It also ...



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Kimble Charting Solutions

Here's How To Buy The Top Stocks In The Hottest Sectors During The Covid Crisis

Courtesy of Chris Kimble

Tech has been the place to be during the Covid-19 crisis. Investors Business Daily recently highlighted how one can own the strongest of the strong by just owning one ETF (See article here).

This chart looks at the Dorsey Wright Focus Five index ETF (FV), which reflects that it is attempting a bullish breakout while creating higher lows over the past 6-years.

The $2.1 billion fund tracks the Dorsey Wright Focus Five Index, which provides access to five First Trust sector and industry ETFs. Dorsey Wright & Associates selects the funds based on relative price momentum, then weights the compone...



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Digital Currencies

Twitter Says "Human Error" And "Spear-Phishing Attack" Responsible For Massive Bitcoin Hack

Courtesy of ZeroHedge

Twitter suffered from a major hack about two weeks ago and has now said that its staff was tricked by "spear-phishing", which is a targeted attack to trick people into simply handing out their passwords. 

Twitter staff were targeted through their phones, according to a new report from the BBC. The attacks then allowed hackers the ability to Tweet from celebrity Twitter accounts. Twitter has said it was "taking a hard look" at how it could improve its permissions and processes.

"The attack on July 15, 2020, targeted a small number of employees through a phone spear phishing attack. This attack relied on ...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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