Posted on 03/21/2008 8:50:00 AM PDT by khnyny
A hedge fund based in London set up a "dirty-tricks unit" to manipulate share prices and get illicit information on companies in an attempt to make millions on the stock market, an insider has revealed.
Jeff Randall: Rumour Mill mafia is destroying our savings Leader: HBOS mugging shows that crime pays Email and Singapore call causes City frenzy
As the official hunt began for the rogue traders who tried to bring down Britain's biggest mortgage lender, HBOS, The Daily Telegraph can reveal a whistle-blower's account of how a multi-billion pound fund allegedly used illegal tactics to drive down stock prices.
Private detectives were allegedly employed to hack into executives' emails and telephone records.
Front companies were set up to allow the hedge fund traders to pose as independent researchers or journalists.
Negative information on companies was then distributed to leading investment banks in the hope that rumours would spread and some share prices would fall.
The hedge fund, which cannot be named for legal reasons, stood to make millions from "short-selling" the shares as they fell in value.
The allegations — made in a sworn statement seen by The Daily Telegraph and which has been sent to financial regulators — will add to growing concern over the activities of rogue traders in the City.
The Financial Services Authority, the City regulator, has begun a criminal investigation to find the trader who allegedly made £100 million from the 17 per cent slump in HBOS shares on Wednesday.
The shares fell after "malicious" rumours were spread in the City about the bank, sparking fears that the price had been illegally manipulated — a move described as "the modern day version of bank robbery".
(Excerpt) Read more at telegraph.co.uk ...
as if this is not done already?
Of course, but it’s making the press. The dark underbelly is being revealed, lol.
“Asian link to HBOS rumour”
http://business.theage.com.au/asian-link-to-hbos-rumour/20080321-20xf.html
[If the attack on HBOS shares did start in Asia, then the Financial Services Authority will have great difficulty finding the source. A sharemarket insider said: “It will be like nailing a ghost to the wall.”]
Yeah, we have huge, marker shaking, international bank collapses every day after all. What makes one more conspiracy to bring down a bank big enough to push the European market right into a ditch so special? /sarcasm
marker=market. Caffeine must be wearing off
On the other hand, I’m wondering if some...more widespread problem will be revealed by continuing investigations.
Yep. I wonder how far down the rabbit hole these investigations will go, or if the public will ever hear about the outcome.
All of it doesn’t pass my smell test.
Mine either.
Same idea employed in the oil futures perhaps?
Court orders Starbucks pay workers $106 million
Reuters via Yahoo | March 21, 2008 | Peter Henderson
Posted on 03/21/2008 9:02:49 AM EDT by TopQuark
http://www.freerepublic.com/focus/f-chat/1989326/posts
Burst Bubble? Commodities’ Long-Term Story Remains Intact
Seeking Alpha | March 21, 2008 | Davy Bui
Posted on 03/20/2008 10:38:58 PM EDT by SeekAndFind
http://www.freerepublic.com/focus/f-chat/1989190/posts
Some See a Commodities Bubble Forming
Money News | March 19, 2008
Posted on 03/19/2008 8:28:32 PM EDT by SeekAndFind
http://www.freerepublic.com/focus/f-chat/1988480/posts
$2,000 an ounce gold is in the cards
MarketWatch | March 18, 2008 | Chuck Jaffe
Posted on 03/19/2008 7:05:57 PM EDT by george76
http://www.freerepublic.com/focus/f-news/1988429/posts
Precious Metal Market
Posted on 03/13/2008 7:41:16 PM EDT by LukeL
http://www.freerepublic.com/focus/f-chat/1985313/posts
[from 2005] Euro sinks further after “break up” talk
Financial Times | June 1, 2005 | Steve Johnson
Posted on 06/01/2005 5:43:59 PM EDT by RWR8189
http://www.freerepublic.com/focus/f-news/1414656/posts
That was my thought. While immoral, unethical and in some cases illegal, this is not surprising to anyone wh knows the market.
A little, ‘Peak Oil Theory’ and media hysteria. The real problem is the Fed devaluing the dollar and destroying Main Street while keeping Wall St. in cash for awhile. The Central Banks get big cash infusion ‘loan’ from Fed for 28 days. $200 B to be precise. Central Banks loan to hedge funds whom can leverage $200 B $4 TRILLION. This gets pumped into energy and gold. Price goes up, margins made. Little guy pays for the profit in higher prices per barrel of oil/gas. The Fed may have colluded intentionally to save the financial system as a tactic but itself likely committed crimes in the process. So who bailed out fiscally irresponsible bankers and consumer on subprime? You did and so did I! Makes ya feel all warm and fuzzy your getting $600 bucks back when your winter energy bill between heating fuel and gas was $3,000 now doesn’t it? This is not a conspiracy theory, this factually has and is occuring.
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