There are obviously a few but some hints to narrow it down include “possible insider trader” and “bouncey.”
Archive for October 2009
Outsiders probably think in-depth research and a top notch ability to get information first was the “edge” that Galleon “pressured” traders and analysts to go after in their pursuit of big returns but based on the outbursts of one of the firm’s top employees? Kinda sounds like the fund was also keenly aware of the importance of rubbing rabbit feet and finding four-leaf clovers before executing trades, as well as the perils of allowing black cats to run amuck on the floor.
According to the Journal senior trader Leon Shaulov (previously employed with Sagamore Hill Capital and Goldman Sachs), and not Rajaratnam, was the guy you didn’t want to cross if you came into the office without the good stuff. Shaulov would verbally abuse those who couldn’t get enough material non-public information to make a buck, which seems standard. Who doesn’t do that? What really got Leo’s goat, however, apparently had nothing to do with people slacking on fact-finding missions. What set Shaulov off was jerk-offs who brought (actual) curses on the House of Galleon.
Given the breadth and depth of bailouts last September, it should come as no surprise that some of the conditions of the rescue packages were unclear to both parties. Take, for example, the support for forthcoming regulation that was apparently expected of banks in exchange for taxpayer dollars. Repayment of principal and interest is nice and all, but the real debt repayment was buried somewhere in the implied fine print.
Banks receiving aid are “literally going and fighting the very type of regulations and reforms that are necessary to prevent, again, a crisis like this happening”, Chief of Staff Rahm Emanuel said on CNN’s “State of the Union” yesterday.
While there is more than a hint of biting the hand that feeds, it’s not as though every single financial services organization was on the verge of being Lehmanized and needed to be TARPed. You’d think firms that were better positioned to withstand the economic hurricane would have a right to speak there minds. Just don’t tell that to Larry Summers.
Raj-Raj and Hank Paulson yuk it up at a business and technology conference, November 2004. [via]
Rajaratnam Became Billionaire Driving Analysts, Demanding Edge (Bloomberg)
Raj-Raj wanted his people to have “better information than anyone else,” by which he meant 411 they could trade on illegally. Also, people who were late to 8:35AM meetings were fined $25.
Arrest of Hedge Fund Chief Unsettles the Industry (NYT)
“It is pride, and I want to win,” Mr. Rajaratnam said in “The New Investment Superstars,” a book by Lois Peltz published in 2001. “After awhile, money is not the motivation. I want to win every time. Taking calculated risks gets my adrenaline pumping.”
US Said To Target Wave Of Insider Trading Cases After Galleon (Bloomberg)
Gird your loins: “The pending crackdown, based on at least two years of investigation, targets securities professionals including hedge- fund managers, lawyers and other Wall Street players, the people said, declining to be identified because the cases aren’t public. Some probes, like the one that focused on Rajaratnam, rely on wiretaps. Others stem from a secret Securities and Exchange Commission data-mining project set up to pinpoint clusters of people who make similar well-timed stock investments.”
Barclays chairman warns of onerous regulation (FT)
“There is the real risk of regulatory arbitrage,” Marcus Agius said in an interview with the FT. “The same principles will apply in different ways in different capital markets with different outcomes. This is a global financial system. It is fungible. So I am very concerned there should be a level playing field.”
Fade To Blackstone (NYP)
Supposedly Schwarzman is having trouble raising money for a new leveraged buyout fund (the firm has only collected $9 billion since fundraising began in early 2008, and they wanted at least $20 billion).
Citigroup might lose Mexican subsidiary (FT)
Citi might lose Banamex, which accounts for about 15 percent of its global profits, due to last year’s government injection, because it places the subsidiary in breach of national law, which bans foreign governments from owning a stake in domestic banks. So, that would be unfortunate.
UBS Registered Mail Warns U.S. Clients on Tax (Reuters)
Check out the big brain on UBS: “Swiss bank UBS AG warned U.S. customers by registered mail their account details may be given to U.S. tax authorities, a method that could itself breach secrecy laws, a Swiss paper said on Sunday. The use of registered mail and envelopes showing the sender was UBS could enable the U.S. authorities to trace customers wanted for tax evasion well before their details are handed over under a U.S.-Swiss double taxation agreement.”
Madoff Montauk home sale completed for $9.41 million (Reuters)
Sale of the hideous beach house beat expectations of $8.75 mill.
From: Bob Wood
Sent: Fri 10/9/2009 5:06 PM
Subject: Galleon Group September 2009 Commentary and Performance Reviews
Please find attached Galleon’s monthly investment letter together with the package of the September performance reports. All of the funds recorded solid returns for the month as we continue to see evidence that we are moving into a stock pickers market. If you have any questions or wish additional information, please do not hesitate to contact me.
Robert Wood
Managing Director, Business Development
The Galleon Group
590 Madison Avenue, 34th Floor
$$$ “Raj Rajaratnam was ordered to post a $100 million bond as part of his bail conditions, though prosecutors argued for no bail because he posed a flight risk. Anil Kumar was released on a $5 million bond.” [Dealbook]
$$$ Why Did Bank of America Post a Billion-Dollar Drop? [The Atlantic]
$$$ Marc Rich Details His Iran Oil Deals [NYT]
$$$ “If they’re too big to fail, they’re too big,” Greenspan said today. “In 1911 we broke up Standard Oil — so what happened? The individual parts became more valuable than the whole. Maybe that’s what we need to do.” [BS]
$$$ Andrew Ross Sorkin’s book is big [BI]
$$$ Job of the Week: Unicorn Investment Bank needs a Senior Director. You. [DB Career Center]
$$$ Blankfein says Goldman would not have taken federal money if he had seen the bonus backlash ahead. [Fortune]
Did Martha get a perp-walk? No!
Throwing Down The Gauntlet: Why Haven’t Stevie, Ken, L-Train or Einhorny Made Their Own Rap Videos Yet?
By Bess Levin
“When the rally’s on, put your money on Galleon.” That’s one of the lines from a rap the Galleon Group made about itself, in pre-(getting busted for)-insider trading days, according to the Post. Listen to it after the jump, and then let’s discuss the fact that this actually happened, and that if we could secure Li’l Wayne, the investors in Stamford would go nuts for this shit.
The Galleon Group, whose founder Raj Rajaratnam was arrested today for insider trading, has stated that they were “shocked” to hear the boss had been escorted out of his apartment building, and had “no knowledge” that the FBI and SEC were listening in on Raj and Co’s convos. According to Big G, the firm is “highly liquid” at this time.
According to on-set sources, Shia LaBeouf has been shadowing real traders and trying his hand at the stock exchange and winning huge sums. An insider tells Star magazine, “He’s been learning the ins and outs of the market. Shia says that he’s made more than $50,000 already.”
