An important element of any Wall Street education is figuring out what shady practices will win you a reputation as a genius, what shady practices will win you a reputation as a scumbag, and what shady practices will win you a prison sentence. There is substantial overlap!1 That education is extremely contextual, and your intuitions about what shadiness flies in one business won’t necessarily help you in another, or in court for that matter. For instance I grew up in a corporate equity business, so I’d be happy to tell you why Yahoo!’s share repurchase from Dan Loeb wasn’t insider trading but you can probably figure that out on your own. Meanwhile I have no idea what to make of spoofing, but it seems like Panther Energy Trading did some of it, and now they are in trouble: Read more »
If Charlie Gasparino And The Fox Business Police Were In Charge, Jon Corzine Would’ve Been Nailed Years AgoBy Bess Levin
As you may have heard, earlier today the Commodity Futures Trading Commission charged Jon Stevens Corzine for (allegedly!) misusing nearly $1 billion in customer funds at MF Global. According to the CFTC, this was able to happen in large part because JSC “did not enhance MF Global’s deficient systems and controls sufficiently to ensure that the firm’s increasing reliance on FCM cash did not result in unlawful uses of customer money.” This pissed off Fox Business reporter Charlie Gasparino for two reasons, both of which he shared with CFTC Commissioner Bart Chilton this afternoon:
1. He wrote about MF Global’s insufficient controls two years ago, ergo, the CFTC could’ve and should’ve brought the charges against Corzine way back then, instead of dragging its ass. In fact, Chaz says that on his watch, we would’ve seen action within one week’s time.
2. No fraud charges? What’s that about? Add it to the list of things CG would get done in his capacity as Senior Kicker of Ass and Taker Of Names. Read more »
International regulatory amity, bipartisan concerns and common sense be damned: The (probably) outgoing CFTC chair is going to see to it that these swaps-trading rules go into effect next month, damn the consequences. Read more »