The Dark Money Secretly Bankrolling Activist Short-Sellers — and the Insiders Trying to Expose It
Institutional Investor, 30 November 2020
More than a dozen short-sellers interviewed by Institutional Investor in an effort to penetrate this murky terrain say there are numerous players and various permutations of the model that may involve the sharing of ideas and research along with either a cut of the gains on the short trade or a set fee. In fact, some short-sellers believe that almost all of the activists have such backing — even those running small hedge funds themselves.
GE CEO Slams Whistleblower Report As ‘Market Manipulation’
Rachel Sandler, 15 August 2019
In response to a whistleblower report claiming to have uncovered massive accounting irregularities at General Electric, CEO Larry Culp said the author of the report, who previously raised concerns about Bernie Madoff’s ponzi scheme years before it was brought down, is engaging in “market manipulation” and stands to gain by tanking GE shares.
Harry Markopolos claims in the 175-page report that GE is falsifying financial statements to cover up massive losses related to its long-term-care insurance unit and the company’s oil and gas business, adding that GE is using many of the same accounting practices Enron did. Continue reading “Article: GE CEO Slams Whistleblower Report As ‘Market Manipulation’”
Heist of the century: Wall Street’s role in the financial crisis
Charles Ferguson, 20 May 2012
Bernard L Madoff ran the biggest Ponzi scheme in history, operating it for 30 years and causing cash losses of $19.5bn. Shortly after the scheme collapsed and Madoff confessed in 2008, evidence began to surface that for years, major banks had suspected he was a fraud. None of them reported their suspicions to the authorities, and several banks decided to make money from him without, of course, risking any of their own funds. Theories about his fraud varied. Some thought he might have access to insider information. But quite a few thought he was running a Ponzi scheme. Goldman Sachs executives paid a visit to Madoff to see if they should recommend him to clients. A partner later recalled: “Madoff refused to let them do any due diligence on the funds and when asked about the firm’s investment strategy they couldn’t understand it. Goldman not only blacklisted Madoff in the asset management division but banned its brokerage from trading with the firm too.” Continue reading “Article: Heist of the century: Wall Street’s role in the financial crisis”