Foreign Collusion, Naked Shorting (Counterfeiting) & Money Laundering — All Illicit Wealth
Japanese regulator looks to fine Morgan Stanley for market manipulation
Hayley McDowell
The Trade, 6 December 2016
Japan’s Securities and Exchange Surveillance Commission (SESC) has recommended that Morgan Stanley be fined based on the findings of an investigation into market manipulation.
The SESC found a trader at Morgan Stanley had placed orders and conducted trades on the Tokyo Stock Exchange over a 14-day period in October 2015, without intention to execute.
FINRA Fines Morgan Stanley $80,000 for Supervisory Failures, Deletion of 21k OTC Options Positions
Michael Edmiston
Stock Law, 13 June 2016
Morgan Stanley & Co. LLC received a censure and $80,000 fine after a FINRA investigation determined the firm improperly deleted 21,374 over-the-counter (OTC) options positions required to be reported to the Options Clearing Corporation (OCC)’s LOPR system, thereby rendering the LOPR data inaccurate.
FINRA wrote that, “The accuracy of LOPR data is essential for the analysis of various potential violations, including insider trading, position limits, exercise limits, front-running, capping and pegging, mini-manipulation, and marking-the-close.” The identification process assists regulators in identifying potential market manipulation by users who hold large options positions, such that deleting such information may adversely affect the industry’s ability to detect such violations.
SESC Proposes $1.9m Fine for Morgan Stanley MUFG over Market Manipulation
Finance Magnates, 12 June 2016
Japan’s financial market watchdog, the Securities and Exchange Surveillance Commission (SESC), today recommended fining Morgan Stanley MUFG Securities for alleged market manipulation related to shares of railway operator, Seibu Holdings, according to a Reuters report.
SESC has recommended that the Financial Services Agency (FSA) imposes a penalty of ¥220 million ($1.9 million), as revealed in a statement posted on its website.
It looks like traders might have manipulated another huge market
Portia Crowe
Business Insider, Portia Crowe
A handful of London traders may have rigged the UK-government bond market, according to reports from Global Capital and The Wall Street Journal.
Global Capital reports that regulators have contacted Bank of America Merrill Lynch, Credit Agricole, Credit Suisse, and Nomura in relation to a possible investigation into manipulation in the British-government bond market.
Nine banks to pay $2 billion to US investors in rate-rigging case
Pinsent Masons, 18 August 2015
Nine of the world’s largest banks have agreed to pay a total of $2 billion in compensation to investors in the US over the manipulation of exchange rates, and to cooperate in litigation against 12 other defendants.
Law firm Hausfeld announced that settlements have been reached with Bank of America, Barclays, BNP Paribas, Citi, Goldman Sachs, HSBC, JPMorgan, RBS, and UBS on behalf of investors.
The banks will now work with the investors in continuing litigation against Credit Suisse Group, Credit Suisse, Credit Suisse Securities, Deutsche Bank, Deutsche Bank Securities, Morgan Stanley, Morgan Stanley & Co, Morgan Stanley & Co. International, Bank of Tokyo-Mitsubishi., RBC Capital Markets, Société Générale and Standard Chartered. Several of these banks were added to the action last month based on facts found during the investigation, Hausfeld said.
Boston pension fund accuses big banks of manipulating U.S. securities
Greg Ryan
Boston Business Journal, 24 July 2015
The city of Boston’s pension fund has sued more than 20 of the world’s largest financial companies, claiming they conspired to alter the prices of U.S. Treasury securities they sold to the fund and other investors across the country.
The lawsuit, which was filed in New York federal court on Thursday, targets Merrill Lynch, Goldman Sachs, Morgan Stanley, and Citigroup Global Markets, among other dealers of the securities.
As China stocks sink, some accuse Morgan Stanley, other foreign forces
Laura He
MarketWatch, 3 July 2015
The recent, drastic stock-market meltdown in China seems to have freaked out the country’s government and central bank, as their repeated efforts to stabilize the markets have failed, at least so far.
And now, some segments of Chinese society are now raising the possibility that “evil” market forces going short to ruin the economy, and even suspecting investment “predators” of lurking behind the turmoil, with Morgan Stanley among the names mentioned.
Illegal Naked Short Selling Appears to Lie at the Heart of an Extensive Stock Manipulation Scheme
Larry Smith
SmithOnStocks, 16 June 2015
Only a motivated enforcement agency with subpoena power and an accompanying powerful enforcement infrastructure can prove that naked shorting is at the heart of an extensive stock manipulation scheme. However, I believe that the observational evidence is overwhelming that naked shorting practices are widely used to manipulate the stock prices of emerging biotechnology companies as well as many other small and large companies. Unfortunately, naked shorting is an investment variable that investors must understand if they are going to make investments in the emerging biotechnology space in particular and the equity markets in general.
FINRA v Morgan Stanley
13 May 2015
Based on the foregoing reviews, the staff determined that the firm violated FINRA Rule 4560, NASD Rule 3360, NYSE Rule 421, FINRA Rule 2010, NASD Rule 2110, NASD Rule 3010, and SEC Rule 200(1). Specifically, the staff determined the firm failed to submit accurate short interest reports during certain short interest reporting periods and failed to provide a supervisory system reasonably designed to achieve compliance with short interest reporting requirements.
PDF (10 pages): FINRA v Morgan Stanley
JP Morgan agrees to pay $100 million to settle a Currency Manipulation Lawsuit in New York
Giambrone, 25 January 2015
Financial service giant JPMorgan Chase & Co. has reached a $100 million settlement to resolve a U.S. antitrust lawsuit that sought damages for the alleged rigging of foreign currency markets, in which investors accused 12 major banks of rigging prices in the $5 trillion-a-day foreign exchange market in the case of In re: Foreign Exchange Benchmark Rates Antitrust Litigation, U.S. District Court, Southern District of New York, No. 13-07789.
JP Morgan will pay about $100 million and settled the case after mediation with Kenneth Feinberg, an American attorney, specializing in mediation and alternative dispute resolution. Bank of America, Citigroup, HSBC, RBS and UBS also settled with regulators in November for an additional $3.3 billion. Continue reading “Article: JP Morgan agrees to pay $100 million to settle a Currency Manipulation Lawsuit in New York”
Goldman, Morgan Stanley And JP Morgan Named In Commodity Manipulation Investigation
Maggie McGrath
Forbes, 19 November 2014
A two-year investigation conducted by the Senate Permanent Subcommittee on Investigations has accused Goldman Sachs, Morgan Stanley and JP Morgan of manipulating commodity prices. In a nearly-400 page report released Wednesday evening, the subcommittee says that these banks have become “heavily involved with” the commodities markets and increasing risks to financial stability, industry and consumers.
JP Morgan Chase’s alleged manipulation of electricity markets detailed
Kevin G. Hall
McClatchyDC, 29 July 2013
The federal regulator of electricity markets on Monday accused Wall Street powerhouse JP Morgan Chase & Co. of using multiple trading strategies to manipulate electricity markets in California and the Midwest for profit.
The Federal Energy Regulatory Commission already had alleged in March that JP Morgan Chase was guilty of manipulating energy markets in California and the Midwest. But late Monday, after the close of financial markets, the agency made public the details in a Staff Notice of Alleged Violations.
Secrets and Lies of the Bailout
Matt Taibbi
Rolling Stone, 4 January 2013
It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed. To listen to the bankers and their allies in Washington tell it, you’d think the bailout was the best thing to hit the American economy since the invention of the assembly line. Not only did it prevent another Great Depression, we’ve been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right?
Lan Pham
Economics Voodoo, 28 December 2012
The banking and financial crisis emerging in September 2008 is often called a global financial crisis, but to be more precise the data point to a crisis of the Western central banks. I referenced euros previously, so this is the euros companion to Quantitative Easing 0-1-2-3∞ & The Federal Reserve’s Love Affair with its Banks and Mortgage Bonds: Levitating The Black Hole. QE 0-1-2-3 is incomplete as concurrently the Federal Reserve Bank also entered into $10.06 Trillion in dollar ‘loans’ liquidity swaps with foreign central banks that we examine in Section I. Why QE $10T as we look at a few of Europe’s largest banks in Section II, which leads us to the $1.25 Trillion naked reasons behind the Federal Reserve Bank’s Quantitative Easing I purchase of phantom agency mortgage bonds that we revisit more closely in Section III.
Barron’s Gary Weiss Caught Plagiarizing Matt Taibbi, Find-Replaces Style With Spin
Patrick Byrne
DeepCapture, 7 August 2012
Two months ago a schlubby-but-savage Goldman lawyer named Joseph E. Floren made a mistake that caused some previously redacted information about Goldman Sachs to slip into the public’s hands. The event was ably covered by such globally-respected publications as Bloomberg, the Economist, and Rolling Stone.
Since May I have wondered, With the truth emerge at last in publications such as Economist, Bloomberg, and Rolling Stone, surely the Bad Guys must understand they have lost control of the narrative. Surely, I thought, they are working out some new damage control strategy to deflect or usurp the truth as it comes out.
And as always, Gary Weiss doesn’t let us down.
THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?
