Investor: Jim Chanos

Investor

James S. Chanos (born December 24, 1957) is an American investment manager. He is president and founder of Kynikos Associates, a New York City registered investment advisor focused on short selling. A noted art collector, he appeared on the BBC Four documentary The Banker’s Guide to Art.

Biography

Article: Save The Billionaire Short-Sellers!

Article: House Hearing On Gamestop Fiasco Will Focus On “Short Selling And Stock Manipulation”

Remember How Naked Short Selling Wasn’t a Big Deal?

Article: How were more than 100% of GameStop’s shares shorted?

Article - Media

How were more than 100% of GameStop’s shares shorted?

John McCrank, Reuters, 18 February 2021

But Vlad Tenev, broker Robinhood’s chief executive officer, recently pointed out that some of the stocks involved in the “meme stock” rally were more than 100% shorted, implying that more shares were shorted than were available to trade.

“I just think that’s pathological,” he said on the All-In Podcast late last Friday. “You end up with this situation that could destabilize the financial markets.”

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Article: Part 9 of Illegal Naked Shorting Series: The Risk/ Reward of Shorting Versus Buying Stocks is Extremely Unfavorable

Article - Media

Part 9 of Illegal Naked Shorting Series: The Risk/ Reward of Shorting Versus Buying Stocks is Extremely Unfavorable

Larry Smith

Smith On Stocks, 11 July 2019

In this report, I contrast the risk and reward of shorting versus buying stocks. When you unravel the economics and risk/ reward of shorting, it is clear to me that this is a highly risky, low return strategy. As argued in this report, I see shorting as a losers game if employed consistently over time as opposed to buying stocks which is a winners game. I see shorting as a niche strategy that is applicable on a short term trading basis for a very limited number of stock trades. I think you will agree with me as I go through the major risk and reward elements of shorting.

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Article: Why Famed Short-Seller Jim Chanos Is Betting Against Burger King And Dunkin’ But Praising Chipotle

Article - Media, Publications

Why Famed Short-Seller Jim Chanos Is Betting Against Burger King And Dunkin’ But Praising Chipotle

Maggie McGrath, 26 April 2018

The tale of two restaurant ownership models — wholly-owned and franchised — is translating into similarly divergent market performances for certain restaurant stocks Thursday. And much of the movement has to do with the comments of one short-seller.

Shares of Dunkin’ Brands and Restaurant Brands International (QSR), which is Burger King’s parent company, are in negative territory after Jim Chanos, the investor who famously shorted Enron, told CNBC Thursday morning that he’s taken short positions in both names. His reason: he is not optimistic about the future of asset-light, franchise-focused businesses. “[E]verybody wants to sell the restaurants and not own them but basically clip the coupon of collecting royalties,” he said. “And we’ve had this dichotomy now of restaurant stock multiples going higher and higher and higher as restaurants themselves have struggled. I think at some point that has to come to an end.”
Continue reading “Article: Why Famed Short-Seller Jim Chanos Is Betting Against Burger King And Dunkin’ But Praising Chipotle”

Paper: Counterfeiting Stock

Paper

Counterfeiting Stock

Anna McParland

The Creation of Counterfeit Shares — There are a variety of names that the securities industry has dreamed up that are euphemisms for counterfeit shares. Don’t be fooled : Unless the short seller has actually borrowed a real share from the account of a long investor, the short sale is counterfeit. It doesn’t matter what you call it and it may become non–counterfeit if a share is later borrowed, but until then, there are more shares in the system than the company has sold.

The magnitude of the counterfeiting is hundreds of millions of shares every day, and it may be in the billions. The real answer is locked within the prime brokers and the DTC. Incidentally, counterfeiting of securities is as

It is estimated that 1000 small companies have been put out of business by the shorts.

PDF (12 Pages): Paper Counterfeiting Stock

Article: Looting the Pension Funds All across America, Wall Street is grabbing money meant for public workers

Article - Media

Looting the Pension Funds

All across America, Wall Street is grabbing money meant for public workers

Matt Taibbi

Rolling Stone, 10 October 2013

Raimondo’s strategy for saving money involved handing more than $1 billion – 14 percent of the state fund – to hedge funds, including a trio of well-known New York-based funds: Dan Loeb’s Third Point Capital was given $66 million, Ken Garschina’s Mason Capital got $64 million and $70 million went to Paul Singer’s Elliott Management.

The state’s workers, in other words, were being forced to subsidize their own political disenfranchisement, coughing up at least $200 million to members of a group that had supported anti-labor laws.

This is the third act in an improbable triple-fucking of ordinary people that Wall Street is seeking to pull off as a shocker epilogue to the crisis era.

Baker reported that, had public pension funds not been invested in the stock market and exposed to mortgage-backed securities, there would be no shortfall at all.

It’s a scam of almost unmatchable balls and cruelty, accomplished with the aid of some singularly spineless politicians. And it hasn’t happened overnight. This has been in the works for decades, and the fighting has been dirty all the way.

Union leaders all over the country have started to figure out the perils of hiring a bunch of overpriced Wall Street wizards to manage the public’s money.

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Article: In Pursuit of the Naked Short by Alexis Stokes

Article - Academic

In Pursuit of the Naked Short

Alexis Stokes, Texas State University

Journal of Law and Business 5/1 (Spring 2009)

This article explores the origins of naked short-selling litigation; considers
the failures of significant naked short-selling lawsuits in federal court;
surveys the obstacles erected collectively by constitutional standing requirements, the Federal Rules of Civil Procedure, the Private Securities Litigation Reform Act, brokerage firms, death spiral financiers, and the Depository Trust and Clearing Corporation; examines the efficacy of Regulation SHO, SEC rule 10b-21, and new FINRA rules; discusses recent state legislation and state court litigation; and identifies non-litigation options to curb naked short-selling. Ultimately, this article seeks to answer the question: If manipulative naked short-selling is more than a mythological scapegoat for
small cap failure, what remedies are, or should be, available?

PDF (62 Pages): Article In Pursuit of the Naked Short

Web: Merrill Pays $15 Billion in Compensation After Taking $10 Billion in TARP Funds

Web

Merrill Pays $15 Billion in Compensation After Taking $10 Billion in TARP Funds

Bob O’Brien

Sanity Check via Wayback, 23 January 2009

After all, the logic, or rather the gun to the head of the taxpayer by Hank Paulson, was that the economy would vaporize if we didn’t take taxpayer money and give it to Wall Street banks and insurance companies, to, er, lend, or to relieve them of the burden of having to carry the toxic paper they created on their books any longer.

At the time, I said that was clearly a lie, and all this would be is a redistribution from the Treasury, to the Wall Street buddies of Paulson’s who got us into the mess in the first place.

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Article: Bringing Down Bear Began as $1.7 Million of Options

Article - Media

Bringing Down Bear Began as $1.7 Million of Options

Gary Matsumoto

Bloomberg cited by RGM Communications via Wayback, 11 August 2008

On March 11, the day the Federal Reserve attempted to shore up confidence in the credit markets with a $200 billion lending program that for the first time monetized Wall Street’s devalued collateral, somebody else decided Bear Stearns Cos. was going to collapse.

In a gambit with such low odds of success that traders question its legitimacy, someone wagered $1.7 million that Bear Stearns shares would suffer an unprecedented decline within days. Options specialists are convinced that the buyer, or buyers, made a concerted effort to drive the fifth-biggest U.S. securities firm out of business and, in the process, reap a profit of more than $270 million.

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Article: Offshore shell games threaten global financial system

Article - Media

Offshore shell games threaten global financial system

Lucy Komisar

The Komisar Scoop, 17 September 2007

There’s an astonishing article in the Washington Post’s Business Section (“Risk. Now They See It. Now You Don’t.“ Sept 16, 2007)

The Post, which has never, ever, railed against tax havens, is now suggesting that their use to cheat tax authorities and investors threatens the entire global financial system. Of course, it doesn’t put it so starkly, but that’s the gist.

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Article: Hedge Hogs

Article - Media

Hedge Hogs

Liz Moyer

Forbes, 28 June 2006

So who should be overseeing the $1.2 trillion hedge fund industry? Apparently no one is now. But the U.S. Senate Judiciary Committee has two ideas.

Either the nation needs new legislation to tackle allegations of widespread trading abuses by the hedge funds, or law enforcement officials should simply be encouraged to do the right thing with laws they already have at their disposal?

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Article: Corporate reform dead; SEC chief should resign

Article - Media

Corporate reform dead; SEC chief should resign

Loren Steffy

Houston Chronicle, 1 March 2006

Corporate governance reform is dead. Its last gasp was stifled by the subpoenas issued last month by the Securities and Exchange Commission against several news organizations and writers.

Last week, Marketwatch .com columnist Herb Greenberg and Dow Jones Newswires columnist Carol Remond acknowledged receiving the subpoenas, which involved stories about Internet retailer Overstock .com.

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Web: Where is the US Department of Labor on Theft of ERISA and Retirement Funds

Web

Where is the US Department of Labor on Theft of ERISA and Retirement Funds

Bud Burrell

Sanity Check via Wayback, 30 January 2006

Where is the Department of Labor in the total breakdown in surveillance of fraud against US individual and other pension and retirement assets? This is a fundamental responsibility of this Agency according to the Employee Retirement Income Security Act of 1974. Under their oversight (an oxymoron?), some $4 Trillion or more has been stolen from the savings of US investors placed in their retirement and pension accounts.

Why hasn’t anyone else addressed this issue? Why is the silence of DOL on this issue so total, literally deafening in it silence? It appears everyone responsible for protecting individual investors has deferred to the interests of the very wealthy and their front organizations, particularly hedge funds. What would happen if every small American simply stopped putting money into the market? That is what the markets deserve for their corruption, venality and arrogance.

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Article: Offshore Banking – The Secret Threat To America (Hound-Dogs)

Article - Media

Offshore Banking: The Secret Threat To America

Lucy Komisar

Hound-Dogs, 1 March 2004

This is a story about a massive money-laundering operation run by the world’s biggest banks. It hides behind the “eyes-glazing over” technicalities of the international financial system. But it could be one of the biggest illicit money-moving operations anyone has ever seen. And it’s allowed to exist by the financial regulators who answer to Western governments.

In these days of global markets, individuals and companies may be buying stocks, bonds or derivatives from a seller who is Clearstreamhalfway across the world. Clearstream, based in Luxembourg, is one of two international clearinghouses that keep track of the “paperwork” for the transactions.

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