HSBC bankers got a client’s son a job on Wall Street and then openly discussed how that favor would land them a lucrative deal, The Post has learned…In the 2013 chat, [senior banker Robert] Domanko, who heads HSBC’s institutional equity derivatives business, pushed his subordinates to improve the price of a deal by a few basis points, or 0.01 percentage points, according to a transcript of the conversation obtained by The Post. After one banker asks why they should give the client a better deal, Domanko spills the beans in an Instant Bloomberg chatroom. “to look competitive …maybe he gives it to us if we are close but not the best price..jenn spent 2months helping the clients son get an internship,” he wrote in the chatroom on Dec. 16, 2013. “chance he gives to us if close, but not best offer,” he went on. “so, even a few bps would help,” he said, referring to the basis points. The deal was a complex derivatives transaction known as a swap where the bank would allow the client to bet on the direction of an equity index , according to a person familiar with the deal. The swap transaction fell apart and was not completed. Other bankers in the chatroom were livid about Domanko’s loose lips. “Amazing,” one wrote. “are you kidding me on that helping the clients son get an internship?” wrote another. “How can you write that in an IB chat?” asked a third. “the internship wasn’t at hsbc,” Domanko replied. “she mentored him…” [NYP]
quid pro no-no
Some, But Not All, HSBC Bankers Too Good For An ‘I Scratch Your Back, You Scratch Mine’ Relationship With ClientsBy Bess Levin
RBS’s full-year 2016 capital ratio under the European Banking Authority’s “Adverse Scenario” is 5.7% versus 6.7% previously reported—meaning the bank just hurdled the minimum 5.5% pass rate. The EBA organized the stress tests, which were aimed to help restore confidence in bank balance sheets. RBS said it erroneously considered around billions of pounds of deferred tax assets as top quality capital. After comparing with other U.K. banks it realized its error and restated the calculation. [WSJ]
In April 2011, Wilson Sonsini Goodrich & Rosati employee Matthew Kluger was charged with insider trading with a couple of his buddies, in a scheme that went back some 17-odd years. This spooked a fellow WSG&R employee named Dimitry Braverman, because unbeknownst to the Feds, he was running a little insider trading campaign of his own, separate from Kluger’s. Despite the fact that he probably worried about having gaps in his résumé (2009-2011 Insider Trading Professional, 2011-, ???), Braverman decided to pump the brakes on the material non-public information stuff for a while, the Kluger business likely being a bit too close for comfort. About a year later, though, not too long after Kluger was handed the longest insider trading sentence in U.S. history, Braverman got that familiar itch again, an itch more powerful than any fears of getting caught, which he presumably dismissed with a “Fuck it. I’m getting back in the game.” Read more »
JP Morgan Chase’s third-quarter results were published more than three hours ahead of schedule because of a mistake by Shareholder.com, the investor-communications company owned by Nasdaq OMX Group Inc. “The root cause was a human error internally at Shareholder.com,” Ryan Wells, a Nasdaq spokesman, said in an e-mailed statement. Shareholder.com provides companies with Internet services including website maintenance for investor relations. JPMorgan’s earnings press release and supplement appeared online at about 3:30 a.m. in New York. The bank had set 7 a.m. for release of the market-sensitive data. [Bloomberg]
Bank of America suspended a plan to buy back $4 billion of stock and boost its dividend after discovering an error in the way it calculated its capital levels…The second-largest U.S. bank by assets said it discovered the error and brought it to the attention of the Federal Reserve, which then required it to resubmit its capital plan. It has 30 days to do so. The Fed on March 26 approved Bank of America’s proposal to increase its annual dividend to five cents a common share from a penny and expand its share buybacks. The Charlotte, N.C., lender said it now plans to request less than the previously approved plan…The misvalued structured notes were debt securities issued by Merrill Lynch. When the value of the underlying companies changed, the bank failed to readjust the value of the bonds as well. [WSJ]
Behold The Dazzling Array Of Lies Mathew Martoma (née Thomas) Told Before Getting Expelled From Harvard Law SchoolBy Bess Levin
Yesterday we learned that Mathew Martoma, on trial for orchestrating “the largest insider trading scheme in history,” got himself expelled from Harvard Law School 15 years ago for creating fake transcripts to boost his grades. Obviously, this is not a great thing to have come to light if you are about to ask a jury to believe you are an innocent man, particularly if the judge presiding over your case is going to allow the story to be included by the prosecution.
But apparently changing his Civil Procedure grade from B to A (Contracts from B+ to A; Criminal Law B to A) was but a warm up for the deluge of lies the artist formerly known as Ajai Mathew Thomas would go on to tell! The subsequent ones, courtesy of the findings of Harvard’s administrative board, included:
- Claiming the fake transcript was only meant to be seen by his parents
Mr. Thomas asserts that he did not purposefully send the judges the altered transcript. He contends that they received it by accident. According to Mr. Thomas, he altered his transcript only for the purpose of deceiving his parents.
- Blaming the mix up on his brother
At the end of December of in early January, Mr. Thomas’s application for a clerkship was sent to 23 judges in the United States Court of Appeals. The applications included the altered transcript. . . . Mr. Thomas has stated that it was his intention that the real transcript be sent with his applications. According to his statement, he arranged with his brother for the latter to prepare the packets of materials for mailing to each judge; his brother came across the altered transcript and, mistakenly believing that it was the real transcript, included it with the application.
- Potentially the best lie among the lot, the one in which he said that after he was asked to interview with the judges who received the altered grades, he tried his hardest to come off as a candidate they wouldn’t want to hire…
On January 26 and 27, Mr. Thomas interviewed for a clerkship with Judge Sentelle, Judge Randolph, and Judge Ginsburg of the United States Court of Appeals for the D.C. Circuit. Mr. Thomas did not disclose to the judges that the transcript that they had received was not accurate…Mr. Thomas has stated that it was his intention, in order to avoid any harmful effect from the altered transcript, not to be offered a clerkship and that he tried not to be a successful candidate at the interviews.
- …but damn it, they saw through his act!
They may be rogue bums but they’re SAC’s rogue bums. Read more »