Worldco Fined by NASD

you sweat pretty easy.
maybe $15,000 is alot to you . Your words says alot about your ability to move on.
$15,000 = 1/3 of $45,000. very few traders had 45,000 with worldco.
were you leveraged very highly 6 to1 or more on overnite positions so you left it in? greed? possible violation of margin rules? never! did you forget to take it out?

 

nasd release refered to comingling of operations.
result might have been an increase in the capital of worldco thereby allowing prop. traders greater exposure to market.

 

Their Christmas party at Studio 54 in December 2001 cost that much.Walter and John Miller gave that idiotic speech before the party began about how Worldco was going to get stronger and stronger.

Where was Al Guido in all this?We used to call him the Shakedown Artist.Who was Al going to shakedown for money this week?

 

Result was that they used Worldco resources for the hedge fund, and that ownership pulled $5 million out of Worldco in an illegal manner.

 

Or maybe he just didn't know to challenge the contract he'd likely signed that required a $50,000 capital account before receiving full pay-out. Or maybe he simply traded a lot of size. What kind of an asshole are you (obviously probably a member or rep of ownership asshole) to talk down $15,000 for someone and to make absurd assumptions on why he might have had $45,000 in his cap account (especially when Worldco pushed contracts requiring more).

 

That was certainly a good party that year. Only went down hill from there.

 

What did Worldco do that was illegal? The failure to separate the hedge fund and prop- what does that mean?

 

worldco was the broker dealer. hedge fund was the customer of the broker dealer. under securities laws funds and operations of the two are supposed to be kept separate.

 

it must have been quite a bash to cost 1.5M. of course you might have been refering to individual fines which are being paid out of 1.5m firm fine.
if anyone believes party cost 1.5M, i can sell you brooklyn bridge real cheap.
why don't you work numbers out and it was probably 50k to 100k.

LOSING traders were SHAKEN Down- (great attitude) by al guido.
how about a little sympathy for al guido caught in between grumbling upper management and grumbling traders.
probably many of these traders should have been fired but were given extra time to develop their skills