Article: “A Gigantic Clusterf**k”: How Morgan Stanley Avoided $10BN In Archegos Losses By Selling First

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“A Gigantic Clusterf**k”: How Morgan Stanley Avoided $10BN In Archegos Losses By Selling First

TYLER DURDEN, 07 April 2021

One week ago, in our initial take on the biggest hedge fund collapse since LTCM, we explained that – in our view – the catalyst for the failure of the Archegos hedge fund, which had as much as 10x leverage allowing it to hold some $100BN in positions, was Morgan Stanley and Goldman breaking ranks with their fellow prime brokers, and sparking the biggest margin call since Lehman and AIG.

Turns out we were right. Continue reading “Article: “A Gigantic Clusterf**k”: How Morgan Stanley Avoided $10BN In Archegos Losses By Selling First”

Article: People moves: facing the funds fallout music, CS changes chairs, and more

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People moves: facing the funds fallout music, CS changes chairs, and more

Natasha Rega-Jones, 07 April 2021

Credit Suisse faces some tough choices as it absorbs the extraordinary losses inflicted by the Greensill and Archegos fund fiascos and subsequent ratings hit. On April 6, the firm announced an estimated pre-tax loss of approximately Sfr900 million ($963 million) for the first quarter, including a charge of Sfr4.4 billion ($4.7 billion) in respect of Archegos. At the same time, the firm announced that investment bank CEO Brian Chin and chief risk and compliance officer Lara Warner were stepping down from their roles with immediate effect.

Christian Meissner, co-head of wealth management banking advisory and vice-chair of investment banking, will replace Chin in May. Meissner was previously head of global corporate and investment banking at Bank of America Merrill Lynch, and earlier co-CEO for EMEA at Lehman Brothers. Continue reading “Article: People moves: facing the funds fallout music, CS changes chairs, and more”

Article: Cryptocurrencies: A bubble or harbinger of a cashless world?

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Cryptocurrencies: A bubble or harbinger of a cashless world?

ATANU BISWAS, 04 April 2021

The US Treasury described Bitcoin a “decentralised virtual currency”. For every transaction through Bitcoin, for example, some personal information from the user is used to create a kind of password. A ‘hash’ is given for every Bitcoin transaction, with a ‘public key’ and a ‘private key’. Each of these keys is inverse to each other, but it’s not easy to derive one from the other. The ‘public keys’ are available on public domain. Details of each transaction report are available in the database called ‘blockchain’. It is distributed across and maintained by nodes (computers). From this open source, anybody can tell how many Bitcoins are traded at a public key. But, nobody knows who the owner of those Bitcoins is as the security of the ledger cannot be broken. Anonymity and privacy are the characteristics and also the potential danger of cryptocurrencies. Continue reading “Article: Cryptocurrencies: A bubble or harbinger of a cashless world?”

CEO: Richard S. Fuld Jr.

CEO, People

Richard Severin Fuld Jr  born April 26, 1946) is an American banker best known as the final Chairman and Chief Executive Officer of major investment Bank Lehman Brothers.

Fuld held this position from the firm’s 1994 spinoff from American Express until 2008. Lehman Brothers filed for bankruptcy protection under Chapter 11 on September 15, 2008, and subsequently announced the sale of major operations to parties including Barclays Bank and Nomura Securities. Continue reading “CEO: Richard S. Fuld Jr.”

Article: Meet Patrick Byrne: Bitcoin Messiah, CEO of Overstock, Scourge of Wall Street

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Meet Patrick Byrne: Bitcoin Messiah, CEO of Overstock, Scourge of Wall Street

Cade Metz, WIRED, 18 February 2021

The problem with the modern economy, Byrne says, is that it rests on the whims of our government and our big banks, that each has the power to create money that’s backed by nothing but themselves. Thanks to what’s called fractional reserve banking, a bank can take in $10 in deposits, but then loan out $100. The government can make more dollars at any time, instantly reducing the currency’s value. Eventually, he says, laying down a classic libertarian metaphor, this “magic money tree” will come crashing down.

Continue reading “Article: Meet Patrick Byrne: Bitcoin Messiah, CEO of Overstock, Scourge of Wall Street”

Video: Inside Lehman Brothers

Video

Inside Lehman Brothers is the autopsy of a crime by those who tried to prevent it from within. As mortgage brokers for Lehman’s subsidiary BNC, Linda Weekes and her Californian colleagues were at the forefront of the subprime crisis. Matthew Lee, then headquartered in New York, was the first leader to have refused to validate the accounts tainted by fraudulent transactions. At the time nobody listened to these whistleblowers. In 2007 and 2008 other banks lost by the same greed and were saved by the Fed. On Wall Street they say Lehman Brothers was “sacrificed”. It was necessary to make them an example, to promise that this would not happen again. Today banks have recovered their health, and with it, their bad habits. The labels have changed but the mechanisms remain, unlocked by Donald Trump whose cabinet of advisors are the ones who drove the system into bankruptcy back in 2008. Inside Lehman Brothers is the result of an investigative survey conducted by the team for over two years.

https://www.watchonline.guide//movies/inside-lehman-brothers

Article: Marc Cohodes On The EIC Ponzi Scheme

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Marc Cohodes On The EIC Ponzi Scheme

ValueWalk, 15 October 2017

Farmer Marc Cohodes is one of the world’s most feared short sellers. Former General Partner of Rocker Partners/ Copper River from 1985 to 2009, Cohodes has made a name for himself by focusing on the details. He calls out companies where the numbers don’t add up, and he’s usually right. In the financial crisis, he hit the jackpot when he correctly called the demise of Lehman Brothers. After retiring in 2009, Cohodes has since returned to the markets, betting against Canadian mortgage lender Home Capital and Valeant Pharmaceuticals among others.
Continue reading “Article: Marc Cohodes On The EIC Ponzi Scheme”

Article: Deutsche Bank’s $10-Billion Scandal

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Deutsche Bank’s $10-Billion Scandal

Ed Caesar, 22 August 2016

Almost every weekday between the fall of 2011 and early 2015, a Russian broker named Igor Volkov called the equities desk of Deutsche Bank’s Moscow headquarters. Volkov would speak to a sales trader—often, a young woman named Dina Maksutova—and ask her to place two trades simultaneously. In one, he would use Russian rubles to buy a blue-chip Russian stock, such as Lukoil, for a Russian company that he represented. Usually, the order was for about ten million dollars’ worth of the stock. In the second trade, Volkov—acting on behalf of a different company, which typically was registered in an offshore territory, such as the British Virgin Islands—would sell the same Russian stock, in the same quantity, in London, in exchange for dollars, pounds, or euros. Both the Russian company and the offshore company had the same owner. Deutsche Bank was helping the client to buy and sell to himself. Continue reading “Article: Deutsche Bank’s $10-Billion Scandal”

Article: UBS, in Theory, a Conspiracy to Naked Short “Tens of Millions” of Shares

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UBS, in Theory, a Conspiracy to Naked Short “Tens of Millions” of Shares

MARK MITCHELL, 01 May 2013

It wasn’t long ago when they were saying that naked short selling never happened. They said it simply did not exist, that only wild-eyed conspiracy theorists believed in naked short selling. That was before 2008, when the CEOs of some big banks started hollering that naked short selling was causing the stock prices of their banks to nosedive. With the CEOs of the big banks hollering, the SEC, in June, 2008, issued an Emergency Order banning naked short selling (that previously did not exist) in the stocks of 19 big financial institutions (i.e. the financial institutions that were doing the naked short selling—to each other). But the SEC did nothing about the naked short selling of other stocks because, apparently, that naked short selling existed only in the fevered imaginations of people who believed that their savings were being wiped out by little green men. Continue reading “Article: UBS, in Theory, a Conspiracy to Naked Short “Tens of Millions” of Shares”

Article: Europe Comes to Terms With Market Manipulation; the SEC and the American Media Bury Heads in the Sand

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Europe Comes to Terms With Market Manipulation; the SEC and the American Media Bury Heads in the Sand

Mark Mitchell, DeepCapture,  21 May 2010

Well, the current state of the global financial markets is certainly interesting. I mean, you have to be a bit sick in the head, but if you think about it the right way, it really is “interesting” — sort of like, oo-wee, look, the girl in the cute leotard is falling off the tightrope, there’s no net, and she’s going to go “splat” when she hits that pavement. How interesting! And check it out, the circus animals have gone berserk — the tigers are tearing the trainer into bloody shreds, the elephants are stampeding, the tent might very well collapse, maybe we’re doomed, and look at those clowns – they’re still smiling. How deliciously interesting! Continue reading “Article: Europe Comes to Terms With Market Manipulation; the SEC and the American Media Bury Heads in the Sand”

Article: Gary Weiss, Psychopath & Scaramouch

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Gary Weiss, Psychopath & Scaramouch

Patrick Byrne

Portfolio Magazine cited by DeepCapture, 31 December 2008

For over 10 years Gary Weiss (once a reporter with BusinessWeek, and recently, a columnist with Forbes) has been posting under fake names to confuse, distort, and hijack Usenet groups, stock message boards, and Wikipedia, using social media to prevent the public from understanding criminal activity.

I now turn to Gary Weiss. Last year one of the most prominent journalists on Wall Street warned me, “I’ve known Weiss for years. Be careful. He’s a psychopath.” As you will see, he was neither joking nor exaggerating. I think, however, that Gary is better described as a “Scaramouch.”

Read full article.