Pay no attention to unilaterally-instituted no-fly-without-permission zones or alleged violations of human rights. In fact, just ignore Joe Biden entirely, please. Read more »
If Area Shareholder Had His Way, Steve Cohen Would Be Duking It Out With Raj Rajaratnam Over Who Gets Top BunkBy Bess Levin
Earlier this week, SAC Capital agreed to plead guilty to insider trading and pay a $1.8 billion fine. Some people– namely, the Department of Justice, Steve Cohen and those who work for him– are, if not wildly pleased with the terms, at least prepared to go along with them, assuming it is approved this afternoon . Others, namely shareholders of Wyeth and Elan, feel differently. They want U.S. District Judge Laura Swain Taylor to reject the agreement outright and as for what kind of punishment should be dealt out instead? “Eddy N” has some ideas. Read more »
…is a thing people, knowing his position on the country, have probably asked Jim Rogers before. And don’t think he hasn’t thought of it! Unfortunately, the investor is spoken for. Having said that, Rogers is thrilled at the prospect of his daughters’, ages 4 and 9 years-old, marrying one of China’s native sons and is currently accepting applications from potential suitors. Read more »
I guess it’s time for me to stop being amused when China does not-especially-Communist things, but still, I giggled a bit when I saw that China is liberalizing its short-selling rules at around the time that Western Europe is tightening its rules. Because freedom on the march, or whatever, though as David Keohane at FT Alphaville points out, China’s short-selling thingie is pretty solidly in the state-sponsored capitalism camp.
It’s not entirely clear to me why China is liberalizing its rules; the answer seems to be “so that financial institutions can make more money charging hedge funds for stock borrow,” which I guess. Another possible answer could be loosely of the form “China is tired of Americans and Australians making all the money shorting Chinese fraud companies and wants domestic investors to get a crack at that action.” More generally, if you have capital markets beset with fraud, you want to provide incentives to catch that fraud. And if you’re looking to get foreign capital and are worried about embarrassing incidents, it’s nice to have at least some of those incidents taken care of within the family – by Chinese speculators catching Chinese frauds – rather than being exposed to the wider world.
Of course the same incentives exist in Europe, where companies with pretty opaque balance sheets bounce around not telling you whether their balance sheets are filled with fake trees, in the form of Greek bonds, or real trees, in the form of, I don’t know, Swiss francs. Which is why lots of people aren’t that keen on short selling bans on financial stocks in Europe. And yet European regulators seem to disagree. Let’s strain ourselves to justify that a bit shall we?
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