The Stock Market, Investments, and Investing Thread
(01-28-2021, 02:11 AM)Y2K Gamer Wrote: ^^that's a nice outlook but who from wall street ever goes to jail?

Quote:In 2013, the Cohen-founded S.A.C. Capital Advisors pleaded guilty to insider trading and agreed to pay $1.8 billion in fines ($900 million in forfeiture and $900 million in fines) in one of the biggest criminal cases against a hedge fund. Cohen was prohibited from managing outside money for two years as part of the settlement reached in the civil case over his accountability for the scandal. The hedge fund agreed to plead guilty to wire fraud and four counts of securities fraud and to close to outside investors.[1]

Here's another case, these guys are criminals:
Quote:HSBC Holdings' (NYSE:HBC) agreement to pay a $1.9 billion fine to regulators and enter into a deferred prosecution agreement points to lack of adequate control processes in compliance and anti-money laundering. Given the bank's size, it appears that it and some of its peers are too big to jail because they are too big to fail. The agreement constitutes a warning to the bank to clean up its act and avoids revocation of its charter to operate in the United States. The action was taken by regulators in the belief that a failure of a large financial institution could imperil the world's financial system.

HSBC was laundering money for drug lords and criminals. They got a fine. The logic was they're too big, we can't penalize them. Imagine that logic on a smaller scale... We can't hold this murderer accountable because he's a pillar of our community. Reductive logic at it's finest....

This guy got in trouble, because he was not a wall st insider, and he profited and the corporations didn't:

Quote:Sarao's fortune was partly made by artificially manipulating the stock market to make money.

The "flash-crash trader" used specially adapted software to remotely trade on the Chicago Mercantile Index. He bought and sold contracts that effectively speculated on the value of the top US companies.

On this index, every time an order was placed to buy or sell, "high frequency traders" - many of them not human but computers running algorithms - would try to make their own trades milliseconds before those orders could be executed. That way, they could be the first to make money from market changes.

Sarao realised that the high frequency traders all used similar software. That made the market twitchy - like a flock of sheep, all moving in the same direction.
His software took advantage of this by placing thousands of orders before quickly cancelling or changing them, once he had created artificial demand for other traders to buy or sell that asset.
This practice - known as "spoofing" - allowed him to make genuine buy or sell orders at a profit as the price swiftly rose or fell.
By feinting one way, he could make the market move in one direction, only for the "Hound" to disappear, nip around the back of the pack and pick up a quick profit, leaving the high frequency traders with nothing.
In 2016, Sarao agreed to pay the US government $12.8m (£9.9m), the amount prosecutors said he earned from his illegal trading. Altogether, he is thought to have made a profit of about $40m (£31m) in the space of five years.

Sarao pleaded guilty to one count of electronic fraud, and one count of "spoofing" - which is illegal in the US.

He initially faced 22 charges, which carry a maximum sentence of 380 years.

Essentially you have a bunch of grown men gambling that work for very powerful multinationals that do a shitton of lobbying in DC.

And the goal is to make the markets "more fair" for them?

Frankly it's a travesty that they get bailouts and daytraders get told they can't trade Gamestop. If things are universally right or wrong, I don't think a bailout or undercutting daytraders qualifies as a "right".

99 percent of daytraders dip out within a year because they can't win against rigged markets and the big institutions and their lobbyists. Tell me why we ought to enrich the coke-sniffing traders on wall street, but tell the daytraders we know what's best for them and that they can't trade gamestop for their own good?

I lost faith in the system in 2008 when I figured out it's purpose is to enrich investment banks and hedge funds who make risky bets. On the back end we get told their too big to fail so they get to go back to their old ways after a round of bailouts. My assessment of things would be different if they actually took the punches.

//

SEC essentially rubber-stamps whatever wall st does, and the regulators don't get me started about them. They're all goldman guys doing the private sector/ gov't revolving door.

The logic about Market failure is what led to the 2008 bailouts courtesy Bernake, Geithner and Paulson. If you incentivize bad behavior, the bad behavior continues.

You're living on Planet Earth, where the most powerful NOT the most descent, preside over all others. If you want to play in their backyard, i think it would serve you well to play by their rules or go home. 

You lost faith in the system. You should have lost faith in humanity as that was the biggest wealth transfer ever in recorded history, despite massive pain and suffering to the common man. 

My point is, it all is rotten to the core but you live in the core. You have no choice but to play by the rules or go live in a cabin in the woods. You do have a choice and protesting wont work. How'd that forgotten Occupy wallstreet workout? Yeah lol..thats right it faded into oblivion.
Reply


Messages In This Thread
RE: The Stock Market, Investments, and Investing Thread - by akms76 - 01-28-2021, 02:53 AM

Forum Jump:


Users browsing this thread: 1 Guest(s)