Charlie Gasparino: Gary Cohn’s Envy Of Morgan Stanley Might Suggest Changes Afoot, Actually Means NothingBy Bess Levin
Sayeth Chaz: Read more »
Feel free to exchange exultations, insults and sour-grape rationalizations below. Read more »
Umm so maybe someone wants to explain to me what happened to Glenn Hadden? He’s the head of rates at Morgan Stanley, formerly at Goldman, and he was just banned from all CME trading floors for ten days, which is a little funny because, like, what, was he going to walk around on an exchange floor? Like in a tour group? But actually he can’t use computers either,1 so basically, no Treasury futures for ten days. That starts in mid-July and, god, I’d like to be banned from a computer for ten days in July, but I guess the perks of being a successful rates trader include punishments like that.
Anyway the thing he did was … well here is the Notice of Disciplinary Action, which says that the thing he did was violate CBOT Rule 560, which requires that big “positions must be initiated and liquidated in an orderly manner.” So his offense was to trade in a disorderly way when he was at Goldman five years ago. Specifically:
December 19, 2008, during the final minute prior to expiration of the December 2008 10-Year Treasury futures contract, in order to cover the tail (a standard form of risk management activity associated with holding a Treasury futures position at expiry) for the position held by Goldman, Sachs & Co.’s Treasury Desk, Hadden, then a Treasury trader for Goldman Sachs & Co., executed a 100-lot market order, and then submitted a 50-lot limit order, which was only partially filled as a result of illiquidity in the market. During the course of these orders and subsequent fills, the market traded up 27+ ticks resulting in the final price of the December 2008 10-year Treasury futures contract settling above what was indicated by the December – March calendar spread.
So: he tried to buy a lot of Treasury futures real fast, and as a result of that he ended up paying too high a price for them. I guess that’s a little “disorderly” but also sort of underwhelming.2
What is going on? Obviously there are two possibilities: Read more »
Mr. Gorman sent an e-mail on Wednesday promoting the music career of his daughter, whose band, Madness and the Film, released an EP, four songs on iTunes, over the weekend. “She recorded the music with a British musician over the past six months,” Mr. Gorman wrote in the e-mail. “They co-wrote lyrics, music and play and sing the songs. He is lead vocals and she sings back-up and plays numerous instruments.” In an interview, Mr. Gorman said Caroline, 17, has always had a passion for music and plays piano in her school’s orchestra. When she was 15, Ms. Gorman was playing in bars and had booked studio space in Chelsea. She spent every Friday night for months recording her first CD. “She plays everything,” he said. Last year, while in upstate New York, Ms. Gorman met David Breeze, a British musician, and the two of them joined together to form Madness and the Film. The songs released on iTunes have a melodic, indie pop rock feel to them. [Dealbook, related, related, related]
Morgan Stanley Shareholders Will Have To Think For Themselves Before Deciding How To Cast Their Purely Symbolic ProxiesBy Jon Shazar
If you’re a Morgan Stanley shareholder on the fence about whether to give the bank your non-binding vote in favor of its executive-compensation plan this year, and would like a proxy firm to make your non-decision for you, you are out of luck. Read more »
The Fed has some “large U.S. financial services firms” by the balls. Morgan Stanley is not among them. Read more »