Naughty, Naughty JP
I got this direct from wikileaks.com
Check it out:
“In 2000 the SEC promulgated Rule 10b5-1. The new Rule was designed to address the confusion caused by a series of court decisions that had left investors uncertain about what constitutes insider trading. Rule 10b5-1 was designed to “clarify” what constitutes illegal insider trading.
But top Wall Street houses were not to be deterred from advantaging their big clients at the expense of their small ones. Wall Street firms like JP Morgan found loopholes in Rule 10b5-1 that allowed them to continue trading on inside information “legally.” Indeed, JP Morgan has gone so far as to set up an entire ’selling program’ within its Securities division to help their clients profit from the loophole.
Documents obtained earlier this month by Wikileaks from JP Morgan Private Bank, which subtitles itself as “World class solutions for wealthy individuals and families”, show the firm has a dedicated ‘10b5-1 Selling program,’ along with a ‘dedicated 10b5-1 team’ to help its clients take advantage of the loophole.”
So much power to be had, is it any wonder JP dipped their hand into the cookie jar? Whether they get in trouble for this or not, is in doubt.
But this is simply wrong. Here’s another interesting tidbit from wikileaks…
“According to a statistical research paper published by Stanford’s Graduate School of Business in September last year, executive 10b5-1 trades beat gains relative to non 10b5-1 executive trades by more than 500%. “
What really frays my ends about this one, is that I might have lost money on a trade because of a stupid 10b5-1 trade. And yet when a smaller investor gets a tip off and makes some money, the SEC is up their A$$.
Listen, this JP thing goes even deeper. To read more on it check it out here:
http://wikileaks.org/wiki/Whistleblower_exposes_insider_trading_program_at_JP_Morgan?=dugg
This makes me wonder if the insiders over at Bear Sterns worked out some kind of ‘arrangement’ months in advance with JP as to how to handle the companys shares should they go under.
Considering the huge volume activity the March 30 Calls had (which were way out of the money, only fifteen cents a pop!) It looks more and more like this whole thing was planned, staged, and executed so that Bear’s executives don’t loose much of anything.
If this is really how things went down this past weekend, then that’s freaking dirty.
Meanwhile the Bears Sterns employees – you know, the ones making the money – get screwed out of a third or more of their retirement (since they had about a third of their retirement money in BSC stock!).
If the executives and big financial holders of BSC really did get bailed out by JP, then they deserve to have all of their money taken away from them and distrubuted to the employees who have just lost their retirement and even their jobs.
Thats the only way to make this fair.
Oh yeah, and how about punching JP in the face for propogating such trading tactics! In other words, hit them with a big freaking fine.