Tag Archives | Investing

Only on Wall Street: Lose $2 Billion of Your Company’s Money and Make $15 Million Yourself

One Chase Manhattan Plaza

Photo: Leoboudv (CC)

It’s great to have a job where even if you seriously screw up, you still make plenty of dough. Via RT:

Ina Drew helped make bank for JPMorgan Chase as the firm’s chief investment officer — until a blunder on her part cost the company roughly $2 billion. Drew resigned as CIO on Monday, but that’s not to say she is stepping down with nothing to show.

Despite being responsible for an in-house trading loss that totaled as much as $2.3 billion in losses for JPMorgan Chase, Drew stands to walk away from the Wall Street firm with a payout that could bring her as much as $15 million.

Drew’s departure from JPMorgan Chase was publicized early Monday, only days after she was named in a major economic goof-up that garnered criticism directed towards one of Wall Street’s most iconic institutions.

The bank is still slated to hold its annual shareholders meeting on Tuesday this week, with a new CIO already stepping up to the plate.

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Free $10 Million Loans For All!

Madoff JokerIf you work on Wall Street it’s time to take Bill’s Hicks’ advice for advertising and marketers … because this will never happen. Sheila Bair writes in the Washington Post:

Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore.

For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.

So why not let everyone participate? Under my plan, each American household could borrow $10 million from the Fed at zero interest.

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Why Obama’s JOBS Act Couldn’t Suck Worse

Matt Taibbi bursts the bubble of all those gogo Internet companies and their bankers who are celebrating the JOBS Act, in Rolling Stone:
Boy, do I feel like an idiot. I've been out there on radio and TV in the last few months saying that I thought there was a chance Barack Obama was listening to the popular anger against Wall Street that drove the Occupy movement, that decisions like putting a for-real law enforcement guy like New York AG Eric Schneiderman in charge of a mortgage fraud task force meant he was at least willing to pay lip service to public outrage against the banks. Then the JOBS Act happened. The "Jumpstart Our Business Startups Act" (in addition to everything else, the Act has an annoying, redundant title) will very nearly legalize fraud in the stock market...
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Check Out Ron Paul’s Stock Portfolio (and for Other Members of Congress)

Ron Paul Gold CoinFrom Linette Lopez’s article in Business Insider. Here’s what Ron Paul does and full article here.

Well, this is predictable …Today members of Congress had to reveal their stock holdings. We were curious what anti-Fed, pro-gold Congressman Ron Paul held, and no surprise, he likes gold. Lots of it. Here are the stocks he owns:

Agnico Eagle Mines; Alumina Common; Anglo Gold Ashanti Ltd.; BrigusGold Corp. Com MPV (formerly Apollo Gold Corp); Barrick Gold Corp.; Claude Research Inc; Coeur D’Alene Minds Corp.; Gold Corp Inc; El Dorado Gold Corp.; IAM Gold Corp.; Kinross; Lexam Explorations Inc.; Mag Silver Corp.; Metalline Mining Co.; Mutual Securities Inc.; Newmont Mining Corp.; Pan American Silver; Petrol Oil and Gas; Silver Wheaton Corp; Virginia Mines Inc.; Vista Gold Corp.; Viterra Inc; Wesdome Gold Mines Ltd.; Allied Nevada Gold Corp.; Hecla Mining Co.

Looks like he’s doing well these days.

Click here to see what some of his fellow Representatives are holdings as well.… Read the rest

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7 Ways The Hedge Fund Industry Is Built On Fraud, Lying, And Stealing

matthew-tannin-in-handcuffs-accompanied-by-federal-agent-getting-placed-into-black-carCould the entire hedge fund industry rest upon tens of thousands of instances of lying, cheating, and stealing? Well, at least they’re immensely generous (with their political donations). Via Guernica:

1. Insider Trading. If the Feds could tape every hedge fund we’d get an earful of how hedge funds use “expert networks” to transfer bits of illegal information that provide hedge fund managers with knowledge of events that are sure to move markets and make them a bundle.

2. Ponzi Schemes. Madoff isn’t the only one. Hedge funds and Ponzi schemes are made for each other since the funds are designed to evade so many disclosure regulations. It’s virtually a sure thing that every new year will reveal another Ponzi scheme through which a hedge fund steals money from investors and then uses new investor money to pay returns to the old investors.

3. Tax Evasion. No surprise here. Wherever you find billionaire financiers, you’ll find schemes to move money around the globe to dodge taxes.

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The U.S. Congress Does ‘Abnormally’ Well in the Stock Market

Monopoly ManThis should be more troubling, but it feels like business as usual in Washington. Dan Foomkin writes on the Huffington Post:

Members of the House of Representatives considerably outperform the stock market in their personal investments, according to a new academic study.

Four university researchers examined 16,000 common stock transactions made by approximately 300 House representatives from 1985 to 2001, and found what they call “significant positive abnormal returns,” with portfolios based on congressional trades beating the market by about 6 percent annually.

What’s their secret? The report speculates, but does not conclude, it could have something to do with the ability members of Congress have to trade on non-public information or to vote their own pocketbooks — or both.

A study of senators by the same team of researchers five years ago found members of the higher chamber even better at beating the market — outperforming it by about 10 percent, an amount the academics said was “both economically large and statistically significant.”

Read More: Huffington Post

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Ever Want to Yell at 300 Billionaires Who Helped Wreck the Economy? (Video)

USUncutAt Bank of America's first Investor Conference in three years (3/8/11), organizers from US Uncut crashed the event to protest corporate tax dodgers and public service cuts. The room was packed with 300 hedge fund managers, institutional investors, & asset managers. What US Uncut said:
When corporations like Bank of America don't pay their fair share of taxes, we have to 'cut' teachers, firefighters, and public servants. Do you pay your taxes? So do we. Why don't corporations pay their fair share, just like everyone else? Bank of America is Bad for America. Bank of America pockets Billions in profits and bailouts, but $0 in American taxes — that's immoral and un-American.
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Gold-Dispensing ATMs Arrive In The United States

goldThe immensely popular gold-dispensing ATMs have made their way to American shores, popping up at a mall in Florida. Will gold be a “parallel currency” in a few years? From Yahoo News:

A German company installed the machine Friday at an upscale mall in Boca Raton, a South Florida paradise of palm trees, pink buildings and wealthy retirees.

Thomas Geissler, CEO of Ex Oriente Lux and inventor of the Gold To Go machines, says the majority of buyers will be walk-ups enamored by the novelty. But he says they’re also convenient for more serious investors looking to bypass the hassle of buying gold at pawn shops and over the Internet.

“Instead of buying flowers or chocolates, which is gone after two or three minutes, this will stay for the next few hundreds years,” Geissler told The Associated Press in a telephone interview.

The company installed its first machine at Abu Dhabi’s Emirates Palace hotel in May and followed up with gold ATMs in Germany, Spain and Italy.

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Most U.S. Stock Trades Are Made by Computers, Not People: Is “High Frequency Trading” Manipulating the Stock Market?

The Crime of Our TimeI came across this topic while working on the Disinformation-published The Crime Of Our Time, written by Plunder filmmaker Danny Schechter. To me, this is one of those topics, the media should be more concerned about, (60 Minutes did report on this last night), but I wonder if the fear of massive manipulation destroying confidence in the entire system is causing many to look the other way. 60 Minutes reports:
It may surprise you to learn that most of the stock trades in the U.S. are no longer being made by human beings, but by robot computers capable of buying and selling thousands of different securities in the time it takes you to blink an eye. These supercomputers — which actually decide which stocks to buy and sell — are operating on highly secret instructions programmed into them by math wizards who may or may not know anything about the value of the companies that are being traded. It's known as "high frequency trading," a phenomenon that's swept over much of Wall Street in the past few years and played a supporting role in the mini market crash last spring that saw the Dow Jones Industrial Average plunge 600 points in 15 minutes. Most people outside of the industry know very little, if anything, about it. But the Securities and Exchange Commission and members of Congress have begun asking some tough questions about its usefulness, potential dangers, and suspicions that some people may be using computers to manipulate the market.
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