Posts Tagged ‘obstruction of justice’

Government Destroyed Documents Regarding Pre-9/11 Put Options

SEC: Government Destroyed Documents Regarding Pre-9/11 Put Options

Courtesy of Washington’s Blog

On September 19, 2001, CBS reported:

Sources tell CBS News that the afternoon before the attack, alarm bells were sounding over unusual trading in the U.S. stock options market.

An extraordinary number of trades were betting that American Airlines stock price would fall.

The trades are called "puts" and they involved at least 450,000 shares of American. But what raised the red flag is more than 80 percent of the orders were "puts", far outnumbering "call" options, those betting the stock would rise.

Sources say they have never seen that kind of imbalance before, reports CBS News Correspondent Sharyl Attkisson. Normally the numbers are fairly even.

After the terrorist attacks, American Airline stock price did fall obviously by 39 percent, and according to sources, that translated into well over $5 million total profit for the person or persons who bet the stock would fall.

***

At least one Wall Street firm reported their suspicions about this activity to the SEC shortly after the attack.

The same thing happened with United Airlines on the Chicago Board Options Exchange four days before the attack. An extremely unbalanced number of trades betting United’s stock price would fall — also transformed into huge profits when it did after the hijackings.

"We can directly work backwards from a trade on the floor of the Chicago Board Options Exchange. The trader is linked to a brokerage firm. The brokerage firm received the order to buy that ‘put’ option from either someone within a brokerage firm speculating, or from one of the customers," said Randall Dodd of the Economic Strategy Institute.

U.S. investigators want to know whether Osama bin Laden was the ultimate "inside trader" — profiting from a tragedy he’s suspected of masterminding to finance his operation. Authorities are also investigating possibly suspicious trading in Germany, Switzerland, Italy and Japan.

On September 29, 2001, the San Francisco Chronicle pointed out:

"Usually, if someone has a windfall like that, you take the money and run," said the source, who spoke on condition of anonymity. "Whoever did this thought the exchange would not be closed for four days.

"This smells real bad."

***

There was an unusually large jump in purchases of put options on the stocks of UAL Corp. and AMR Corp. in the three business days before the


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Arrogance Defined: Goldman Sachs

Here’s Karl Denninger’s thoughts on Goldman Sachs’s data dump on the FCIC.

Arrogance Defined: Goldman Sachs

JAKARTA, INDONESIA - JANUARY 27: Eight-year-old Basir (R), helps his sister Ning (L) to climb the mountain of rubbish where they will collect plastic, at the Bantar Gebang landfill site, one of Jakarta's biggest dump sites, on January 27, 2010 in Jakarta, Indonesia. Children who live and work at the landfill site are schooled by day before going to help their parents scavange and sell their finds after classes are over. Around 6,000 metric tons of garbage are dumped daily at the landfill site, and can contiue to be following the renewal of the site's contract last year for a further 20 years. (Photo by Ulet Ifansasti/Getty Images)

Will someone just break these bastards up – or close them down?

“We did not ask them to pull up a dump truck to our offices and dump a bunch of rubbish,” said Angelides, 56, who previously served as California’s treasurer. “This has been a very deliberate effort over time to run out the clock.”

I wonder if there’s an obstruction charge in here somewhere.

Another source says that Goldman dumped five terabytes of data on the FCIC.  To put this in perspective that’s something on the order of five hundred full-length DVD movies.  That sort of "data dump" is clearly intended to obstruct investigation and is the sort of tactic sometimes employed in civil litigation when one is trying to prevent the actual discernment of something important by burying it under 100 tons of what amount to chatter over whether the janitor was banging one of the secretaries.

This is the sort of arrogance that I find flatly unacceptable – and so should both Congress and others.  It appears the FCIC does, which is a good thing.  It also appears that Goldman badly miscalculated in their belief they could pull this crap and get away with it.

henry paulsonGoldman has a many-year history of simply pissing on people who claim to come to them with regulatory requirements.  Remember, it was Henry Paulson, then their chief, who came to the SEC and "asked" for the leverage limits that formerly bound them to be removed.  When he was told "no" in 2000, he waited a bit and came back in 2004, and this time got what he asked for.

After this he was "rewarded" with the Treasury Secretary position. 

Both Bear Stearns and Lehman Brothers failed with leverage more than double the former legal limits – limits they could not have exceeded but for Henry Paulson’s "request."

Put another way, neither of those firms would have failed but for Paulson’s act.

That puts a bit of a different color on the financial mess, doesn’t it?

Perhaps the FCIC will examine that factor in the lead-up to the explosion in our financial markets that began in 2007…..

Hope springs eternal!

Picture via Jr. Deputy Accoutant 


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77 Fraud, Money Laundering, Insider Trading, and Tax Evasion Investigations Underway Regarding TARP

My belief is the benefits of TARP and the entire alphabet soup of lending facilities was not as stated by Bernnake and Geithner, but rather to shift as much responsibility as quickly as possible on to the backs of taxpayers while trumping up nonsensical benefits of doing so. This was done to bail out the banks at any and all cost to the taxpayers. – Mish

77 Fraud, Money Laundering, Insider Trading, and Tax Evasion Investigations Underway Regarding TARP

Courtesy of Mish

Magnifying glass over US dollar bills

Inquiring minds are reading the SIGTARP Quarterly Report To Congress. The report is a massive 224 pages long. I will do my best to condense it down to the critical highlights involving Fraud, Money Laundering, Insider Trading, etc.

Let’s start with the SIGTARP mission, then the findings. 

Mission

SIGTARP’s mission is to advance economic stability by promoting the efficiency and effectiveness of TARP management, through transparency, through coordinated oversight, and through robust enforcement against those, whether inside or outside of Government, who waste, steal or abuse TARP funds.

Let’s dive into the 224 page report and see how well TARP, and the alphabet soup of lending facilities met their stated goals. 

On the positive side, there are clear signs that aspects of the financial system are far more stable than they were at the height of the crisis in the fall of 2008. Many large banks have once again been able to raise funds in the capital markets, and some institutions — including some that appeared to be on the verge of collapse — have recovered sufficiently to repay their TARP investments years earlier than most would have predicted. These repayments and the sales of the warrants associated with them have meant that Treasury (and thus the taxpayer) has turned a profit on some of the individual TARP investments; as a result of these repayments, among other positive developments, it now appears that the ultimate cost of TARP to the American taxpayer, while still substantial, might be significantly less than initially estimated.

Mish: The idea that there are "profits" is fictitious. It’s effectively praising making 10 cents on a dollar while not counting hundreds of $billions lost on AIG and Fannie Mae, and ignoring $300 billion worth of loan guarantees at Citigroup still in effect.

Moreover, the only reason banks…
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Phil's Favorites

Your brain's built-in biases insulate your beliefs from contradictory facts

 

Your brain's built-in biases insulate your beliefs from contradictory facts

These psychological tendencies explain why an onslaught of facts won’t necessarily change anyone’s mind. Francesco Carta fotografo/Moment via Getty Images

Courtesy of Jay Maddock, Texas A&M University

A rumor started circulating back in 2008 that Barack Obama was not born in the United States. At the time, I was serving as chair of the Hawaii Board of Health. The director and deputy director of health, both appointed by a Republican governor, ...



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ValueWalk

Does the Cleveland Fed's Systemic Risk Indicator Predict Stress?

By Jacob Wolinsky. Originally published at ValueWalk.

Cleveland Fed’s Systemic Risk Indicator is Reliable, Timely, and Valid When Predicting Stress

The Cleveland Fed’s systemic risk indicator (SRI) was developed in response to the financial crisis of 2007-2009 in the hope that it could provide regulators with advance warning of conditions that might warrant a corrective response.

Q3 2020 hedge fund letters, conferences and more

In this ...



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Politics

Socialism is a trigger word on social media - but real discussion is going on amid the screaming

 

Socialism is a trigger word on social media – but real discussion is going on amid the screaming

‘Tug-of-words’ posts debating the merits of socialism versus capitalism are all over social media platforms. pxfuel

Courtesy of Robert Kozinets, USC Annenberg School for Communication and Journalism

The word “socialism” has become a trigger word in U.S. politics, with both positive and negative perceptions of it split alo...



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Zero Hedge

Owner Of NYC Bar Arrested Days After Declaring "Autonomous Zone" To Dodge Pandemic Restrictions

Courtesy of ZeroHedge View original post here.

The co-owner of a bar on Staten Island which declared itself an 'autonomous zone' after its liquor license was yanked over COVID-19 lockdown violations was arrested and perp-walked out of the business in handcuffs on Tuesday night.

Photo via ABC7NY

A...



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Chart School

Gold Chart Review

Courtesy of Read the Ticker

Gold swing trade is due, lets review some charts to see if it is a viable move.

The seasonal period of gold is now upon us, gold should advance for the next 3 months.


Gold Gann Angle Chart ...


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Gold Channel Chart


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Kimble Charting Solutions

Are Commodity Prices About To Let The Good Times Roll?

Courtesy of Chris Kimble

Commodities have traded “heavy” for the past decade, as bond yields remain low and inflationary forces remain under wraps. But this trend could be up-ended as we head into 2021.

Today’s chart 2-pack looks at long-term “monthly” charts of the Thomson Reuters Equal Weight Commodity Index and the 10-Year US Treasury Bond Yield.

Over the past decades, Commodities and Yields have shown weakness. The Commodity Index has managed ...



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Biotech/COVID-19

Rapid COVID-19 tests can be useful - but there are far too few to put a dent in the pandemic

 

Rapid COVID-19 tests can be useful – but there are far too few to put a dent in the pandemic

Rapid tests for COVID-19 are easy to administer and give fast results. AP Photo/Julio Cortez, File

Courtesy of Bonnie LaFleur, University of Arizona and Katherine Ellingson, University of Ari...



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Digital Currencies

Five Reasons Why Bitcoin is Going Up

 

Five Reasons Why Bitcoin is Going Up

Courtesy of 

Call it the “Respectability Rally”…

A few reasons for Bitcoin’s return to the record highs. It’s about $18,500 as of this writing, matching the previous highs from 2017’s original explosion.

Reason one: It’s going up because it’s going up. Don’t scoff, this is the reason most things in the markets happen and then the explanations are called for afterwards. I’m in financial television, I have literally watched this process occur in real-time. The more something moves in a given direction, the more peop...



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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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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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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

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

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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...

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