More insider trading chargers, what else is new!!!

Discussion in 'Wall St. News' started by S2007S, Mar 1, 2011.

  1. S2007S


    Here we are 2 years later finding out another X director is being charged with insider trading chargers, of course this is nothing new, must be nice to get news ahead of time and be able to trade TENS of Millions of dollars reaping huge, huge risk free gains, when does this game fucking come to a stop, its all a rigged game....

    Goldman Ex-Director Insider Trading Charges May Solve Long-Running Market Mystery | March 01, 2011 | 01:29 PM EST

    The insider trading charges against a Goldman Sachs board member filed today by the Securities and Exchange Commission have been a long time in coming.

    The SEC’s Division of Enforcement said that Rajat K. Gupta, a Westport, Connecticut-based business consultant, provided Raj Rajaratnam with confidential information he learned while serving on the boards of Goldman and Procter & Gamble. Rajaratnam allegedly used the inside information to trade on behalf of hedge funds controlled by his company, Galleon.

    The SEC says Gupta tipped Rajaratnam about Warren Buffett’s Berkshire Hathaway’s $5 billion investment in Goldman and Goldman’s upcoming public equity offering before that information was publicly announced on Sept. 23, 2008. Gupta allegedly called Rajaratnam immediately after the board conference call, just a few minutes before the market closed. Rajaratnam must have been prepared to move, because within one minute he had arranged for Galleon funds to purchase more than 175,000 shares of Goldman, according to the SEC. Rajaratnam even had time to spread the tip to another trader, who also bought shares of Goldman. The news became public at 6 p.m. that day. The next day, Rajaratnam sold the shares for a $900,000 profit.

    While it’s shocking that this information was allegedly coming from a Goldman board member, we’ve long known that something along these lines had to have happened. The day after the Goldman-Buffett deal was announced, Reuters reported that the pervious day saw an unusual surge in Goldman Sachs [ GS 161.97 -1.81 (-1.11%) ] share price in the last 10 minutes of trading.

    Here’s what Reuters reported on September 24th, 2008:

    Just before 6 p.m. EDT, Goldman Sachs said it would get a $5 billion investment from Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N), which investors welcomed as a much needed vote of confidence in the bank.

    Goldman's shares have since risen about 6 percent. If someone with inside knowledge of the deal was snapping up the bank's shares they would have made a significant, and illegal, profit.

    "Someone is going to get caught, because that is easy to track, they can find out who did that," said Rovelli.

    Goldman Sachs' stock rose from $119.53 at 3:50 p.m. to $125.05 at the close. The S&P financials sub-index meanwhile fell from 273.79 to 273.61 in the same time frame.

    "That share move at Goldman was a clear outlier. It got everybody's attention. It was clear that there was something specific going on in that stock that wasn't going on in any other stock in that space," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.

    The charge is the latest to come out of a long-running crackdown on insider trading by federal authorities. SEC has previously charged Rajaratnam and others in an insider trading scheme involving the Galleon hedge funds. Gupta’s status as a board member of Goldman and P&G makes him the highest ranking person charged in the crackdown.

    Word that investigators were focusing on Gupta was reported back in April by the Wall Street Journal’s Susan Pulliam in April 2010.

    Goldman's name emerged in a government letter listing companies whose trading, by Mr. Rajaratnam and others in the Galleon case, the U.S. is investigating. The March 22 letter said the government is scrutinizing trades by Mr. Rajaratnam and others in Goldman Sachs from June 2008 through October 2008, a time when Goldman shares gyrated amid the bankruptcy of Lehman Brothers Holdings and concerns about the future of all major investment banks.

    As part of that focus, the government is examining whether Rajat Gupta—a current Goldman director, former head of McKinsey & Co. and close associate of Mr. Rajaratnam's—shared inside information about Goldman, the people close to the situation say.

    Shortly before that report, Gupta announced he would step down from the Goldman board to pursue "other commitments."

    So the SEC has apparently now unraveled the mystery of those trades, which we knew to be shady over two years ago. Nonetheless, the fact that a board member was giving away this information to his hedge fund friend is shocking. It will confirm for critics of Wall Street that the game is badly rigged.
  2. If you're not inside, you're *outside*! ok!

    The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market. And you're a part of it.


    And most of you ass clowns on this site only thought it was a movie.

    Do you guys really think that being a "Trader" at home or from some Chop Shop/Prop house is going to bring you into the 1% or even the 6 figs as a norm with out inside info to play against the forces that rule the market?

    LOL... Prop Trading is dead. Period. Washed out, done, over.
    Day trading is about to be finished as well.

    Either get with the program, Plenty of other options out there, join a HFT group, join a desk at GS or get into the Private Equity Game, or die broke.

    Insiders not only rule the markets, the GOV has it's hands in it as well. You can't beat them. You may be able to suck on their tit until you get bitched slap'd as you end up on the wrong side of the market.

    I woke up, I got bitched slap'd but I found another way to make money. I had zero edge against the market manipulators. Now, I laugh all the way to the bank without any inside info or "Black Box Model".
  3. Ugh so frustrating!
  4. EPrado


    Spoken like a true FAILED trader. Thought you would shut up after getting decimated on your SP trade. Apparently not.

    Anyways...while you are on the phone all day cold calling people trying to sell them shares in oil wells, trading has gotten much better with the volatility. Prop trading is far from dead. Just have to have the right strategy/risk mgmt. Two things you never had.

    Now get back to calling grandmothers trying to sell them shares in some sandlot in Bumfuck Texas. LOL.
  5. dtan1e


  6. EPrado


    This dope comes on a trading site over and over to say trading is dead. He just cant let go that he failed and others succeeded. At least he brings some value to the site...fade his mkt calls and clean up.
  7. We should consider ourselves lucky that EMER is able to find the time in between his important private equity meetings and business doings to log on ET and give us such wisdom!

    Not many successful private equity fund managers hang around trading message boards, but EMER is the exception of course! :D
  8. Actually, in all seriousness, I challenge EMR to make one post WITHOUT talking about his private equity business. It's become a pathology with him. Never can he simply make a comment without turning into more self-aggrandizement.

    He makes some good points and is generally insightful, but the constant self adulation is really tedious.
  9. EPrado


    He has about as much chance of being some hotshot in The PE world as The Cavs do winning the NBA title this year.
  10. EPrado


    Those who talk...........................are full of shit.

    He failed as a trader.....and wants EVERY other trader to fail as well. Painfully obvious.
    #10     Mar 1, 2011