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Posts Tagged ‘market manipulation’

Are Electricity Markets Being Manipulated in Texas?

Posted by Larry Doyle on May 7th, 2014 8:58 AM |

Market manipulation is certainly not restricted to Wall Street.

In fact, I believe the most egregious case of market manipulation goes back to the early years of this century when traders in a Houston based firm known as Enron — you remember the names Lay, Fastow, and Skilling, right — manipulated the California electricity market. While Enron rolled in the dough, the only things rolling through the California countryside were blackouts.

Well, how interesting that ten-plus years later we revisit Houston to see the name Enron invoked once again in a case alleging manipulation of the electricity markets right there in Texas. Let’s navigate as the Courthouse News Service recently reported:   (more…)

Manipulating Electricity: When Will Madness End?

Posted by Larry Doyle on July 22nd, 2013 7:25 AM |

Do readers recall how the morally depraved crowd at Enron manipulated the electricity markets so aggressively in California in 2000 as to force the state to implement rolling blackouts?

I am assuming there are some in our audience who not only remember the rolling blackouts, but actually lived through them.

Market manipulation of a basic good or service is a destructive force like none other. Many in America and around the world will dismiss the manipulation that goes on in a structured products market, such as mortgage-backed securities or auction-rate securities. They will similarly dismiss the clandestine dealings within the credit derivatives space or the arcane world of high-frequency trading.  (more…)

Newedge Market Manipulation: Joe Saluzzi Exposed This Years Ago

Posted by Larry Doyle on July 11th, 2013 7:51 AM |

I awake this morning and see a headline of a lead story on The Wall Street Journal jump out at me.

Brokerage Faces Record Fine

My interest is piqued.  What might it be? I quickly peruse the commentary and see words and phrases used that should concern any investor and/or trader including: manipulate U.S. markets . . . risks to the financial system . . . damage investor confidence . . . considerable systemic risk to the marketplace.

I then read of a new word for front-running, that is, “spoofing” and how traders utilized wash trades,”in which a firm acts as buyer and seller in the same trade to distort market activity. The practice can create the illusion of heavy trading volume that lures firms that are tracking for such activity.”  (more…)

Fed-speak: Ease Air Out of Bonds – Support Equities

Posted by Larry Doyle on May 20th, 2013 9:38 AM |

“Don’t fight the Fed.”

While the fundamentals of our underlying economy bump along with continued structural headwinds and fiscal support from Uncle Sam remaining anemic, the Federal Reserve’s QE-infinity remains the underlying cornerstone supporting our markets.

With equities making new highs and high yield bonds trading at stratospheric levels, recent pronouncements from Fed officials strike me as looking to accomplish two goals: (more…)

Barclays Libor Scandal: The Precedent

Posted by Larry Doyle on July 16th, 2012 3:15 PM |

Although many on Wall Street would like to see this Libor scandal go away, that is not going to happen. With banks already admitting that they were involved in the manipulation, the public rage resulting from this massive fraud is only going to grow stronger. Rest assured legal defense teams on Wall Street are working overtime on this case.

Remember, Libor is used as a benchmark for trillions of dollars worth of securities and contracts. A basis point here or there equates to literally billions of dollars — if not more — in misallocated and misappropriated funds.  (more…)

Bloomberg Bombshells re: JP Morgan $2B Loss

Posted by Larry Doyle on May 14th, 2012 7:54 AM |

Bloomberg just reported a couple of bombshells which, when digested, strike right at the integrity and veracity of JP Morgan CEO Jamie Dimon’s comments a month ago.

What did Bloomberg report?

The JPM traders managing the risk within this portfolio were known to execute trades over the course of the last few days of the month. Why is that so interesting and important?

If the firm had such large and unwieldy positions, this end of month trading activity would likely be seen as an indication that JP Morgan was trying to influence the month end pricing valuations of the indices in question. Those pricing valuations would obviously directly correlate with reported profits and losses.  (more…)

Did Wall Street Violate the Racketeering Act…AGAIN??!!

Posted by Larry Doyle on April 29th, 2011 11:46 AM |

Earlier this month I inquired Did Wall Street Violate the Racketeering Act? in regard to the rampant abuses centered on Wall Street institutions involved in the mortgage foreclosure travesty. That commentary written on April 4th generated the strongest and most vocal reaction to any commentary I have written since the inception of Sense on Cents in January 2009. (I encourage you to scan the comments to that article to gain a sense of the pain and anguish felt by so many in our nation today!)

Today I repeat the question.

Did Wall Street Violate the Racketeering Act …Again??” in regard to the pricing and potential manipulation of the credit derivatives market? Why has Wall Street fought the legislative and regulatory proposals to bring greater transparency into this corner of the casino? Why does Wall Street want to maintain its hegemony over the cash cow known as ‘credit derivatives’? Let’s navigate across the pond and review a probe of Wall Street’s CDS business by the EU. The European Union put out this official press release this morning:  (more…)

Will There Be a QE3?

Posted by Larry Doyle on March 28th, 2011 7:56 AM |

Is there really any doubt that virtually all our markets, especially commodities and with the exception of real estate, have been propped higher as a direct or indirect result of the Federal Reserve’s policy of quantitative easing? I have no doubt.

The question remains outstanding just how far the Fed, in concert with its banking friends on Wall Street, has gone and will go to further manipulate our markets. That question may never be fully answered. What a shame! For those who believe a preponderance of truth, transparency, and integrity are the cornerstones for long term fiscal health and financial well being our markets remain a decidedly challenging arena.

In light of this reality and with the end of QE2 on the horizon this June, where do we go from here? A reader posed that very question the other day. (more…)

Operation Broken Trust Missed “The Big One”

Posted by Larry Doyle on December 8th, 2010 7:55 AM |

$8 billion is a lot of money, right? Right.

But when is $8 billion NOT a lot of money?

$8 billion is NOT a lot of money when it is compared to $35 billion, $135 billion, or $335 billion. Agreed?

Agreed. Thank you. Let’s continue.

Sense on Cents is a huge proponent of exposing and prosecuting financial fraud wherever it occurs. To this end, I was happy to see that the Feds have had their ‘street cleaners’ operating overtime the last few months. The results of the Fed’s ‘street cleaning’, also known as Operation Broken Trust, is a not insignificant collection of 231 cases totaling $8 billion in losses. Well done. In all sincerity, I commend each and every individual involved in this effort. While those arrested deserve due process, they also deserve to be prosecuted to the fullest extent of the law. If guilty, I hope they receive maximum sentences.

Regrettably, though, the street cleaners missed “The Big One.” Which scam is that? A scam which by any measure could reasonably be described by any of those much larger figures referenced above.    (more…)

How Long Can Uncle Sam Rig the Game?

Posted by Larry Doyle on May 13th, 2010 5:32 PM |

Is the market rigged?

Actually, the question of whether our markets are rigged or not is becoming less and less a question and more widely accepted as fact. This reality is evidenced by the totally incredulous evidence that four major banks on Wall Street had perfect (not one negative trading day) first quarters.

Some may think this is good for our economy. I am not one of them. Why? (more…)

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