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I wonder if thats for put options as well. Because that HUGE dip in March 08' tells me people stepped back a little before investigations went on.
No doubt in my mind that someone knew about Bear Stearns 3 days before and started buying the put options! There was some insane put activity before it happened.
I thought about that, then I thought about the polar caps melting and realize we'll have plenty of fresh water to last.
Lehman hit by fraud involving Marubeni employees
Whats crazy about this is not that its half a billion dollars but Lehman will never get it back because the company who borrowed it filed for Bankruptcy. Ouch.
http://biz.yahoo.com/rb/080329/marubeni_fraud.html?.v=2
Lehman hit by fraud involving Marubeni employees
Saturday March 29, 8:29 am ET
TOKYO (Reuters) - U.S. investment bank Lehman Brothers was defrauded of some $353.1 million after it was caught in a scam in Japan, a source familiar with the situation told Reuters on Saturday, and trading house Marubeni said some of its staff were involved.
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Goldman Sachs (NYSE:GS - News) was also caught in the scam, daily Asahi Shimbun said on Saturday, citing sources familiar with the issue. The full scale of the fraud was not immediately known.
The Nihon Keizai Shimbun reported on Saturday that senior officials at medical consulting firm Asclepius Ltd, a wholly owned unit of LTT Bio-Pharma Co (Tokyo:4566.T - News), sought to raise funds from investors for the purchase of hospital equipment.
The newspaper said the fraud involved fake documents from Japan's fifth-largest trading firm Marubeni Corp (Tokyo:8002.T - News).
Lehman was not repaid the amount at the end of February, the Nihon Keizai said, without citing sources.
"Lehman Brothers Japan Inc. today confirmed that it is working closely with the authorities to seek full recovery of funds it believes to have been fraudulently misappropriated from transactions in which an affiliate provided financing," Lehman said in a statement on Saturday.
Lehman (NYSE:LEH - News) said it has informed the police and is taking legal action against Marubeni.
"We are confident in our legal claim which we will pursue until we receive repayment from Marubeni," said Matthew Russell, Lehman Brothers head of Corporate Communications, Asia-Pacific, in a statement sent to Reuters.
Lehman declined to comment on the sum of money involved.
A Marubeni spokesman said "Earlier this month we fired two contract employees for their involvement in using false documents with Marubeni's name on them to illegally collect money from investors and we have verbally reported the case to the police."
He said there was "no involvement by Marubeni as a company."
No comment was immediately available from Goldman Sachs.
LTT Bio-Pharma was not immediately available for comment.
The company announced on March 19 that bankruptcy proceedings filed by Asclepius were approved by the Tokyo District Court and also announced that Asclepius was suspected of being involved in illegal dealings.
LEH 5yr chart shows it should be in the low $30's or high $20's if they aren't bankrupt. Thats plenty of downside still left. Wow. I figured $33 is a 50% retracment from its last bounce.
I dont blame you. We could wake up Monday and financials will be up 20%. lol But then we need to think, are they profiting already? Most likely not until 2009.
Still shocks me as I watch the bid drop on MER & LEH and other banks. I mean how much more can the market specialist drop the bid??? Are you positioned with some puts?
I bought May puts of LEH & MER $20. Up 10% already. So sick.
Lehman May $17.50 Put Options. Volume right now is 3473 while Open interest is 334. Thats a 1000% increase over the open interest!!
Is this a scam? Does this normally happen and now we're just looking out for this type of activity? Are they just increasing liquidity?
Or are people really thinking this stock will be near $20 by next month?? We're 7 weeks away from May expiration.
Stock price currently up 1% to $39.09.
~~~~~~~COMPX 03/28/2008~~~~~~~
Previous Close 2280.83 -43.53
2300 QT
2264 timhyma
2245 SSKILLZ1
~~~~~~~COMPX 03/28/2008~~~~~~~
Previous Close 2280.83 -43.53
2300 QT
2264 timhyma
2245 SSKILLZ1
Airline Put Options in 2001. I have never researched this. I'm in shock now.
http://www.hereinreality.com/insidertrading.html
Lehman got upgraded and now the stock is up 10% pre market. LOL Simply amazing. What a mind game we're in.
I also like to know who bought the airline put options before they hit. How can we even track that data?
Check out LEH Put Option Activity. Again like Merryl that day.
Stimulas package = anesthesia. This package is like a shot of anesthesia. If you put your hand on a burning stove you can just give your hand a shot of local aneshesia and not feel the pain but we all know what happens after a while.
Thats what this package is.. A quick fix. Does not solve the problem.
nd yes, most Americans have already been hit, so this money most likely will be put under the matress.
Does paying down an AT & T bill help the economy? Curious.
Amazing I saw 2012 in the subject line because just last night I was pointing out that year to someone as the turn around year. I believe the next Housing Boom will be 2015. Usually every 8-10 years but this time will be on the longer side. By 2015 everyone will forget what we've been through, everyone will forget how their homes can be worth less, everyone will have accumulated some money to ut down...
But you're date of a 2009 crash makes complete sense. The stimulas checks will help us short term (end of 08') but then maybe 2009 will be when we "naturally" get that crash.
~~~~~~~COMPX 03/27/2008~~~~~~~
Previous Close 2324.36 -16.69
2307 QT
2294 SSKILLZ1
We're not in a rally. We're in a bounce. Let the buyers buy. We'll get to a level where the previous buyers from January will start to sell to get their money back. Give it a couple weeks.
Notice the VIX, Volitilty index moves higher when the markets drop. That indicates to me its more natural and less volitile when the markets are moving up. Therefore thats the trend we're in...... for now.
SKF UltraShort Financials is up pre market. Any reason why financials are tanking? Except for the most obvious in general. lol
13 consecutive months. Nice. The fed is going to be doing what owls do with their heads. They'll be spinning them when they realize prices will fall for 14 consecutive months & 9 months out of the 12 in 2008.
Economic News Updates with Notes:
http://www.foxbusiness.com/markets/economy/article/home-sales-decline-reached_530301_3.html
MONDAY, Mar 24
Chicago Fed National Activity Index (February)
January actual: -0.68%
February actual: −1.04
Existing Home Sales (February)
January actual: 4.89 million
February consensus: 4.85 million (-0.8%)
Actual: 5.03 million. 1st rise in 7 months.
TUESDAY, Mar 25
ICSC-UBS Store Sales
Actual W/W: -0.4%, Actual Y/Y: 1.0%
Redbook
Actual: 1.4%
S&P/Case-Shiller showed home prices
January fell by the most on record. 10.7%! 13 consecutive months.
Consumer Confidence Index (March)
February actual: 75.0
March consensus: 73.0
Actual: 64.5. A 5yr Low. The Lowest since 1973 when Nixon was President!
WEDNESDAY, Mar 26
MBA Application Index Week ended: Mar 21
Week Ended Mar 14: 652.0 -2.9%
No Mar 21 consensus
7:00EST
Durable Goods Orders (February)
January actual: -5.3%
February consensus: +0.7%
8:30EST
New Home Sales (February)
January actual: 588,000
February consensus: 575,000 (-2.2%)
10:00EST
Chicago Fed President Charles Evans speaks to the New York Association for Business Economics in New York
THURSDAY, Mar 27
Unemployment Insurance Claims Week Ended Mar 22
Mar 15 Actual: 378.000 (+22,000)
Mar 22 Consensus: 370,000
8:30EST
Gross Domestic Product – Final (4Q 07)
Preliminary: + 0.6%
Final consensus: +0.6%
8:30EST
Fed Governor Randall S. Kroszner speaks on Proposed Amendments at the Truth in Lending Act (Regulation Z) and the Home Ownership and Equity Protection Act to the National Association of Hispanic Real Estate Professionals Legislative Conference in Washington, D.C.
Fed Governor Frederic S. Mishkin speaks on Comfort Zones at Washington & Lee University, Lexington, Va.
FRIDAY, Mar 28
Personal Income (February)
January actual: +0.3%
February consensus: +0.3%
Personal Spending (February)
January actual: + 0.4%
February consensus: + 0.1%
8:30EST
Core PCE (February)
January actual: 2.2%
February consensus: 2.1%
UMichigan Consumer Sentiment – Final (March)
Preliminary actual: 70.5
Final consensus: 70.0
10:00EST
Class Action Lawsuit Filed Against Merrill Lynch
Violating any SEC acts is not a good thing: I wonder how many more fraudlant activity there was out there
Girard Gibbs LLP Announces Class Action Lawsuit Filed Against Merrill Lynch & Co., Inc. (NYSE:MER)
Tuesday March 25, 5:43 pm ET
SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Girard Gibbs LLP (http://www.girardgibbs.com) announces that it is has filed a class action lawsuit on behalf of persons who purchased Auction Rate Securities from Merrill Lynch & Co., Inc. (NYSE: MER - News) and Merrill Lynch, Pierce, Fenner & Smith Inc. between March 25, 2003 and February 13, 2008, inclusive (the “Class Period”), and who continued to hold such securities as of February 13, 2008.
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The class action, captioned Burton v. Merrill Lynch Corp., et al., 08-cv-03037 (LAP), is pending in the United States District Court for the Southern District of New York. The class action is brought against Merrill Lynch & Co., Inc. and its wholly-owned broker-dealer subsidiary, Merrill Lynch, Pierce, Fenner & Smith Inc.
The Complaint alleges that Merrill Lynch violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded. Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic “auctions.” Auction rate securities generally have long-term maturities or no maturity dates.
The Complaint alleges that, pursuant to uniform sales materials and top-down management directives, Merrill Lynch offered and sold auction rate securities to the public as highly liquid cash-management vehicles and as suitable alternatives to money market mutual funds. According to the Complaint, holders of auction rate securities sold by Merrill Lynch and other broker-dealers have been unable to liquidate their positions in these securities following the decision on February 13, 2008 of all major broker-dealers including Merrill Lynch to “withdraw their support” for the periodic auctions at which the interest rates paid on auction rates securities are set.
The Complaint alleges that Merrill Lynch failed to disclose the following material facts about the auction rate securities it sold to the class: (1) the auction rate securities were not cash alternatives, like money market funds, but were instead, complex, long-term financial instruments with 30 year maturity dates, or longer; (2) the auction rate securities were only liquid at the time of sale because Merrill Lynch and other broker-dealers were artificially supporting and manipulating the auction rate market to maintain the appearance of liquidity and stability; (3) Merrill Lynch and other broker-dealers routinely intervened in auctions for their own benefit, to set rates and prevent all-hold auctions and failed auctions; and (4) Merrill Lynch continued to market auction rate securities as liquid investments after it had determined that it and other broker dealers were likely to withdraw their support for the periodic auctions and that a “freeze” of the market for auction rate securities would result.
If you purchased or otherwise acquired Auction Rate Securities from Merrill Lynch between March 25, 2003 and February 13, 2008, and continued to hold such securities as of February 13, 2008, you may, no later than May 25, 2008, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain Girard Gibbs LLP, or other attorneys, to serve as your counsel in this action.
If you wish to discuss your rights as an investor in auction rate securities through Merrill Lynch or any other brokerage, please contact Girard Gibbs LLP toll-free at (866) 981-4800. A copy of the complaint is available from the Court, or can be viewed on Girard Gibbs LLP’s website at: http://www.girardgibbs.com/auctionrate.html.
Girard Gibbs LLP is one of the nation’s leading firms representing individual and institutional investors in securities fraud class actions and litigation to correct abusive corporate governance practices, breaches of fiduciary duty and proxy violations. For more information, please access the firm’s web site, www.girardgibbs.com/auctionrate.html. To discuss this class action with us, please contact the following attorneys:
Daniel C. Girard (dcg@girardgibbs.com)
Jonathan K. Levine (jkl@girardgibbs.com)
Aaron M. Sheanin (ams@girardgibbs.com)
601 California Street, 14th Floor
San Francisco, CA 94108
Phone number: (866) 981-4800
Website: http://www.girardgibbs.com/auctionrate.html
Contact:
Girard Gibbs LLP
Daniel C. Girard, 415-981-4800
Jonathan K. Levine, 415-981-4800
Aaron M. Sheanin, 415-981-4800
~~~~~~~COMPX 03/26/2008~~~~~~~
Previous Close 2341.05 +14.30
2327 SSKILLZ1
2309 timhyma
2296 QT
Dear Lord. At least we're going down in history. lol
Gees, what was that move to $4.30?? Wow.
Nice. You know, it came up on my radar and I have been meaning to check it out. Nice move.
GOLD up 6% pre market, GLD 2.45%, GFI 1.85%, GG bid higher.
~~~~~~~COMPX 03/25/2008~~~~~~~
Previous Close 2326.75 +68.64
2286 SSKILLZ1
2272 QT
1st time closing above the 50dma since December! We haven't held above the 50dma since October so we'll see. MACD still under center line though.
Nice chart of Banking Financials there. I'm glad the media is talking about the bottom. That just means pretty soon another BEar Stearns will happen or we'll "surprise" everyone and form another leg down.
I said I'm glad cause I'm open to Shorting and buying Put Options.
Also note: With the severity of the drop, we cannot form a bottom just as fast. In fact, I don't remember even consolidating.
Which chart are you looking at per the fibonacci's? The Gold Commodity chart is the closing from last week. Is there any way we can get a live one up? I noticed same for $wtic Oil too.
Based on the Gold move today, did we hit that Fibo?
Yeap, and imagine all the people who sold @$4 just to take something back. Definetly sounds like a scam but I'm sure nothing will make from it.
More reason why I think MER will go sky high. That put activity was a scam to get people to short the stock and buy the puts. They got me.
Bear Stearns to be bought at $10/share now?
Oh Gees.
JPMorgan May Raise Bid for Bear Stearns, NYT Says
http://www.bloomberg.com/apps/news?pid=20601087&sid=auCiXqvdA3Ck&refer=home
By Bill Austin and Joseph Galante
March 24 (Bloomberg) -- JPMorgan Chase & Co. may quintuple its takeover offer for Bear Stearns Cos. to more than $1 billion in an effort to win support from employees and shareholders opposed to the deal, the New York Times said.
JPMorgan is in talks to raise its all-stock bid to $10 a share from $2, the Times said, citing unnamed people involved in the negotiations. The Federal Reserve, which helped engineer the takeover after customer withdrawals crippled the New York-based firm, is uncomfortable with any plan that might be perceived as an investor bailout, the report said.
The original bid, more than 90 percent lower than the securities firm's market value at the start of the month, drew opposition from shareholders led by U.K. billionaire Joseph Lewis. JPMorgan Chief Executive Officer Jamie Dimon met with Bear Stearns employees, who own a third of the company, to seek their support last week.
``If you are seeing stock values overall recover, then it would seem that because of the timing, Bear Stearns shareholders got a very raw deal,'' said Jay Moghe, who helps manage $160 million as the Singapore-based head of Opes Prime Asset Management Pte. ``It would look quite embarrassing to the Fed now if the situation results in there being a bidder at a higher price, seeing as they have underwritten the deal at $2.''
Bear Stearns is also considering selling JPMorgan a 39.5 percent stake, which wouldn't require shareholder approval, to help expedite the takeover, the Times said.
Calls by Bloomberg News to the mobile phones of Bear Stearns spokesman Russell Sherman and JPMorgan spokesman Joseph Evangelisti, both based in New York, weren't immediately returned.
Fed's $30 Billion
Bear Stearns climbed 12 percent to $5.96 on March 20 in New York on speculation JPMorgan, the third-largest U.S. bank, might raise its bid or risk prompting rival offers.
The stock, which peaked at $171.51 last year, closed at $30 two days before Chief Executive Officer Alan Schwartz, 58, was forced to accept JPMorgan's terms or face bankruptcy after customers and lenders abandoned the broker. The Fed agreed to provide as much as $30 billion to JPMorgan to get the deal done.
Lewis and James ``Jimmy'' Cayne, Bear Stearns's 74-year-old former chief executive officer, are trying to recruit investors to counter JPMorgan's offer, the New York Post reported last week, citing people familiar with the situation.
The two have approached private equity firms including J.C. Flowers & Co. and Kohlberg Kravis Roberts & Co.; banks including Barclays Plc, HSBC Holdings Plc, Credit Suisse Group and Royal Bank of Scotland Group Plc; sovereign wealth funds and China's Citic Securities Co., according to the Post.
Merger Agreement
JPMorgan may be required to guarantee Bear's trades even if shareholders vote down the takeover and seek another bidder, because of a sentence ``inadvertently included'' in the merger agreement, the Times said, citing a person briefed on the talks.
Bear Stearns employees, directors and lawyers are prohibited from seeking an alternative transaction, according to the agreement, which was filed with regulators last week.
Bear's financial troubles began in July, when two hedge funds that invested in securities tied to U.S. subprime mortgages collapsed. The firm, once the biggest underwriter of U.S. mortgage bonds, had to bail out the funds and take possession of many of the instruments.
LOL, The impossible has been happening. So if you think it's impossible for the economy to be fixed or Gold to go to $700, it just might.
but I agree, this is the 1st correction Gold has had in a very long time.
But keep in your back burner that the fed are done lowering rates. You know whatg that means, right? Dollar will stop dropping, and so commodities will stop rising.
~~~~~~~COMPX 03/24/2008~~~~~~~
Previous Close 2258.11 +48.15
2272 QT
2225 SSKILLZ1
2198 timhyma
HSBC for one. BOA MasterCard for another. At least mine are. I'm talking about finance charges not cash outs.
Ever wonder why mortgage rates are rising while the fed keep cutting rates? Them cutting doesn't really control the mortgage inductry, it mostly covers charged money.
It might only be true to good credit scores though.
Another thing to do is trasfer with 0% rate.
Dead Doctors Don't Lie. Go find it and order the Audio. You'll be glad you did!
Amen! I can't wait until the population understands how Doctors prescribe drugs to patients and how people taking those drugs get sicker than people who opt out.
Don't get me started on this topic, I'll give you an ear full!
Did you know the average age for Doctors is like 56?!!
I call my sister in-law an LDA! Legal Drug Addict!
Upcoming Economic News With Forecast.
http://www.foxbusiness.com/markets/economy/article/home-sales-decline-reached_530301_3.html
MONDAY, Mar 24
Chicago Fed National Activity Index (February)
January actual: -0.58%
No February consensus
Existing Home Sales (February)
January actual: 4.89 million
February consensus: 4.85 million (-0.8%)
10:00amEST
TUESDAY, Mar 25
ICSC-UBS Store Sales
7:45 ET
Redbook
8:55 ET
Consumer Confidence Index (March)
February actual: 75.0
March consensus: 73.0
10:00am EST
WEDNESDAY, Mar 26
MBA Application Index Week ended: Mar 21
Week Ended Mar 14: 652.0 -2.9%
No Mar 21 consensus
7:00EST
Durable Goods Orders (February)
January actual: -5.3%
February consensus: +0.7%
8:30EST
New Home Sales (February)
January actual: 588,000
February consensus: 575,000 (-2.2%)
10:00EST
Chicago Fed President Charles Evans speaks to the New York Association for Business Economics in New York
THURSDAY, Mar 27
Unemployment Insurance Claims Week Ended Mar 22
Mar 15 Actual: 378.000 (+22,000)
Mar 22 Consensus: 370,000
8:30EST
Gross Domestic Product – Final (4Q 07)
Preliminary: + 0.6%
Final consensus: +0.6%
8:30EST
Fed Governor Randall S. Kroszner speaks on Proposed Amendments at the Truth in Lending Act (Regulation Z) and the Home Ownership and Equity Protection Act to the National Association of Hispanic Real Estate Professionals Legislative Conference in Washington, D.C.
Fed Governor Frederic S. Mishkin speaks on Comfort Zones at Washington & Lee University, Lexington, Va.
FRIDAY, Mar 28
Personal Income (February)
January actual: +0.3%
February consensus: +0.3%
Personal Spending (February)
January actual: + 0.4%
February consensus: + 0.1%
8:30EST
Core PCE (February)
January actual: 2.2%
February consensus: 2.1%
UMichigan Consumer Sentiment – Final (March)
Preliminary actual: 70.5
Final consensus: 70.0
10:00EST
True. Also note, with fed dropping rates, the rates on the credit cards are dropping as well. Good for consumers I guess.
What will happen when they start raising rates though which I think they should start doing a.s.a.p.
Isn't MA over $200 or something?
Notice out of the last 11 trading days, only 3 times the market has made tails. Meaning, 8 times the market closed near the high or near the low.
Meaning, the market continued to go in one direction all day. I noticed that with most stocks. If their up 3%, they'll close up 5%. If they're down, they just keep closing down.
We rarely have that opposite move.(creating that tail)
Yeap. Especially after their equity was gone in their homes. We have the numbers imprinted on our fingers from using the plastic so much.
Thats why the new IPO V (Visa) could do very well! Then again, because the economy is in a recession, maybe people aren't paying their credit cards so the companies are taking losses. lol