Posts Tagged ‘Legal’

Let’s Make Murder Illegal!

Let’s Make Murder Illegal!

Vinyl Ready Art - Holidays

Courtesy of Karl Denninger at The Market Ticker 

In a particularly picayune piece of irony FT reports:

The German government is planning to ban the naked short-selling of all German stocks listed on the country’s exchanges in a sweeping enlargement of last week’s contentious bar on the naked short-selling of some securities.

To be clear: Naked short-sales are already illegal.

A bit of explanation is called for here.  You can’t sell something you don’t own.  Therefore, to sell short you have to first acquire what you wish to sell.  To do this you borrow it from someone else.  For example:

"A" owns 100 shares of IBM stock.
"B" wishes to sell short 100 shares of IBM stock.

"B" therefore borrows "A"s stock, replacing that stock with an IOU for the 100 shares, and then sells them to "C".

There are still only 100 shares of stock.  "A" is entitled to whatever dividends would normally be paid by those 100 shares even though he doesn’t have them any more, and "B" has to make good on that.  "C" has the physical shares and gets the cash dividends that are paid on them, if any.

If "A" wishes to sell his 100 shares "B" must return them.  He must return them because the IOU "A" has is callable on "A"s demand, irrespective of the price "B" might have to pay to acquire them!

That price might be very high if there are no willing sellers at a "reasonable" price when "B" has to repurchase them.  But that doesn’t matter – "B" agreed to this when he entered into the short sale.  This event, called a "short squeeze", is one of the risks of selling securities short – since you don’t own them and have to borrow them the person you borrowed them from might want them back at any point in time – and you’re obligated to deliver if that happens, even if it bankrupts you (and sometimes it does!)

Unscrupulous people can and have gotten around this problem.  How? By not actually having acquired the securities they allegedly sell short!

Hang on a second…. how is that possible?

Today, it’s very possible.  "Back in the day" it was pretty tough, since stocks were represented as physical pieces of paper.  When the trade settled you…
continue reading


Tags: , , , , , ,




Goldman, Sears, Others Named In Insider Trading Subpoenas

Goldman, Sears, Others Named In Insider Trading Subpoenas (GS, SHLD)

Courtesy of Clusterstock, by Lawrence Delevingne

 

 


Tags: , , , , , , ,




Rajaratnam Pal: “I’ll Be Like Martha F**** Stewart”

Rajaratnam Pal: "I’ll Be Like Martha F**** Stewart"

Courtesy of Joe Weisenthal at Clusterstock

Some great stuff here, courtesy of the Manhattan DA’s complaint. This part in particular (which Alphaville caught) sounds very, very prophetic.

marthaeffinstewart.png

Meanwhile, this doesn’t look good for Moody’smoodysleaks.png

Source: Hedge Fund Insider Trading PR

Raj RajaratnamSee Also:

Raj Rajaratnam Big Democratic Booster

Feds Perp Walk Raj Rajaratnam

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

 


Tags: , , , , , , ,




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…
continue reading


Tags: , , , , , , , , , , ,




Bove: Wells Fargo Sitting On A Volcano About To Explode (WFC)

Bove: Wells Fargo Sitting On A Volcano About To Explode (WFC)

 Courtesy of Yael Bizouati at Clusterstock

 


Tags: , , , , , , , , ,




It’s Time For A Market In Human Organs

I’ve added a few comments at the end, relying on old information, but from the content of this article, there’s been no improvement in the situation in the last 15 years.  Thanks to Joe for bringing up this important topic! – Ilene

It’s Time For A Market In Human Organs

Apple CEO Steve Jobs (400x300)Courtesy of Joe Weisenthal at ClusterStock

The Boston Globe’s Jeff Jacoby writes that the Steve Jobs liver transplant, and the fact that he may have put his name on the list of several states in order to ensure maximum odds of getting a liver, is a reminder of how horribly broken and dysfunctional this current system is.

What we need is a market mechanism to compensate and encourage organ donors:

No one would dream of suggesting that medical care is too vital or sacred to be treated as a commodity, or to be bought and sold like any other service. If the law prohibited any “valuable consideration’’ for healing the sick, the result would be far fewer doctors and far more sickness and death.

The result of our misguided altruism-only organ donation system is much the same: too few organs and too much death. More than 100,000 Americans are currently on the national organ waiting list. Last year, 28,000 transplants were performed, but 49,000 new patients were added to the queue. As the list grows longer, the wait grows deadlier, and the shortage of available organs grows more acute. Last year, 6,600 people died while awaiting the kidney or liver or heart that could have kept them alive. Another 18 people will die today. And another 18 tomorrow. And another 18 every day, until Congress fixes the law that causes so many valuable organs to be wasted, and so many lives to be needlessly lost.

The fact that we have so many people waiting for kidneys, waiting on expensive and painful dialysis, is proof of how bad the system is, since healthy people don’t need two kidneys, and since having only one kidney doesn’t increase your own odds of getting sick (kidney failure strikes both at the same time, typically).

Rather than delve into all the details of how it would work in practice, let’s just consider some common objections to organ markets, and why they’re all so


continue reading


Tags: , , , ,




Chrysler’s Lawyers Tell Supreme Court That A Stay Will Kill Fiat Deal

Courtesy of John Carney at ClusterStock

Chrysler’s Lawyers Tell Supreme Court That A Stay Will Kill Fiat Deal

caroffcliff.jpgChrysler’s lawyers filed a brief this morning responding to the stay applications of the pension fund creditors. The brief was written by by Thomas Cullen of Jones Day in D.C. and makes some highly explosive claims about the effects of a possible stay.

Tony Mauro of the Blog of the Legal Times describes the brief:

In light of the company’s  "fragile state and daily erosion of value," Cullen argues that a stay would mean that "the sale will not happen," and the challengers would effectively prevail — even though lower courts have upheld the sale agreement. That result would also force the company into liquidation and "cause massive harm to Chrysler and the public interest," the brief asserts.


Tags: , , , , , , ,




 
 
 

Zero Hedge

Florida Prosecutors Plan To Release Kraft Rub-And-Tug Video

Courtesy of ZeroHedge. View original post here.

Florida prosecutors have indicated that they plan to release police surveillance videos of New England Patriots owner Robert Kraft, who was busted in February along with 24 other men for allegedly receiving sexual favors at the Orchids of Asia Day Spa in Jupiter, FL.

Palm Beach County State Attorney Dave Aronberg’s office said in c...



more from Tyler

Insider Scoop

Benzinga's Top Upgrades, Downgrades For April 18, 2019

Courtesy of Benzinga.

Top Upgrades
  • Analysts at Morgan Stanley upgraded Smart & Final Stores Inc (NYSE: SFS) from Underweight to Equal-Weight. Smart & Final shares fell 0.3 percent to $6.47 in pre-market trading.
  • Cowen & Co. upgraded Gogo Inc (NASDAQ: GOGO) from Market Perform to Outperform. Gogo shares fell 2.14 percent to $5.25 in pre-market trading.
  • JP Morgan upgraded ResMed Inc. (NYSE: RMD) from Underweight to Neutral. ResMed shares closed at $97.37 on Wednesd...


http://www.insidercow.com/ more from Insider

Phil's Favorites

Faster, more accurate diagnoses: Healthcare applications of AI research

 

Faster, more accurate diagnoses: Healthcare applications of AI research

As machine learning progresses, its applications include faster, more accurate medical diagnoses. Shutterstock

Courtesy of Seokbum Ko, University of Saskatchewan

When Google DeepMind’s AlphaGo shockingly defeated legendary Go player Lee Sedol in 2016, the terms artificial intelligence (AI), machine learning and deep learning were propelled into the technological mainstream.

BBC Newsnight: AlphaGo and the future of Artificial Intelligence.

AI is generally defined as the capacity for a compu...



more from Ilene

Digital Currencies

5 Cryptocurrency Tax Questions To Ask On April 15th

Courtesy of ZeroHedge. View original post here.

Authored by David Kemmerer via CoinTelegraph.com,

Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

...



more from Bitcoin

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: Thursday, 18 October 2018, 05:33:01 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Why The Stock Market Is Heading For Disaster youtu.be/Gubf0A5pHL0



Date Found: Monday, 29 October 2018, 12:55:07 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Ross Beaty: We Are Star...



more from Chart School

Kimble Charting Solutions

Silver Bear Market Faces Big Price Support Test!

Courtesy of Chris Kimble.

When silver, gold, and the precious metals industry were red-hot bullish in the 2000’s, investors could do no wrong.

You could buy SILVER at just about any price and it would go higher.

In today’s chart, you can see three large green bullish ascending triangles from the 2000’s that lead to big gains. But that was the bull market before the current bear market.

The tables have turned since the 2011 price top. Silver quickly formed a bearish descending triangle and fell another 50 percent when that broke down. This sent a vicious bear mark...



more from Kimble C.S.

ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



more from ValueWalk

Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Reminder: We are available to chat with Members, comments are found below each post.

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



more from Biotech

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



more from M.T.M.

OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>