*No, I think it's Fred's. He's the guy that was saying that we're heading to 3000 by this month.. lol..
Elaine* On Fri, Mar 21, 2008 at 1:18 PM, wencen79 <[EMAIL PROTECTED]> wrote: > May be Elaine's BOZZ is one of the rogue trader...hmmm..just curious. > > Elaine works in Singapore... > > Revealed: The Dirty Tricks of Rogue Traders > > By Robert Winnett > The Telegraph, London > Friday, March 21, 2008 > > http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/21/nhedgi. > .. > > 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. > > 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 L100 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." > > FSA investigators are seeking emails sent to traders that are thought to > have prompted widespread selling of HBOS shares. They claimed the bank was > experiencing difficulties. > > *It has emerged that the rumours are thought to have originated in the Far > East, with Singapore named as the most likely source. Nick Leeson, the > notorious rogue trader responsible for the collapse of Barings Bank, also > operated in Singapore.* > > In a separate development, Credit Suisse, the investment bank, admitted > that it had uncovered a separate L1.4 billion share-dealing scam by rogue > traders -- many of whom were based in London -- who were trying to protect > their bonuses. > > The Credit Suisse traders are understood to have sought to cover up their > trading losses at the end of last year. > > The revelations follow a week of turmoil in the global markets after the > near collapse of the American investment bank Bear Stearns. > > Following a meeting with the major banks, it emerged that the Bank of > England was considering helping to alleviate the financial crisis by easing > the restrictions on banks seeking to borrow money from it. > > The accusations about the hedge fund form the most detailed account yet of > the illicit activity carried out by the London office of a major > international hedge fund. Such tactics are also thought to be used by other > hedge funds. > > The sworn statement containing the allegations is understood to have been > sent to the FSA last year although it is not known what action the regulator > took. > > The document alleges that: > > -- Employees of the hedge fund ordered an American-based private detective > to hack into the corporate email systems of two firms in which the hedge > fund had an interest. > > -- A bogus firm with a phony internet address was established to allow > employees to pose as independent researchers and approach company executives > to garner information on their firms' future financial prospects. The firm > was also used to gain access to industry conferences. > > -- A false Website with a bogus address was also registered to allow hedge > fund traders to pose as journalists. The offices of American politicians > were approached by people claiming to be journalists to obtain information > about potential new laws banning internet gambling that would hit British > firms. > > -- Jurors and their families in a sensitive legal case into whether a firm > had exclusive patent rights in which the hedge fund had invested were > "tapped up." Money was allegedly paid to jurors' families for information > about jury-room deliberations. > > -- Hedge fund staff gathered "sensitive" negative information on firms in > which they had an interest in the share price falling. This information was > distributed to leading investment banks whose experts were encouraged to > take a dim view of the prospects of the company's shares. A German "media > consultant" was also used to disseminate information. > > -- A safe containing large amounts of cash was installed in the hedge > fund's office. Money was paid to "sources" providing valuable inside > information. On one occasion, an anonymous informant was paid $50,000. > > The hedge fund at the centre of the allegations has offices in London's > West End and traders spent their staff Christmas party on a luxury cruise. > > It was set up by former senior executives from a blue-chip investment > firm. However, from 2005, the "dirty-tricks unit" was staffed by former > corporate investigators and investigative journalists hired from newspapers. > > Pressure is growing on the FSA to clamp down on the worst excesses of the > hedge fund industry after a series of scandals culminating in the attempt > this week to start a run on HBOS. > > The hedge fund "dirty tricks unit" exposed today was set up in London but > operated around the world. It is alleged that this was to avoid tougher > regulatory controls in New York. > > On Thursday, Britain's biggest banks met with the Bank of England to urge > them to loan more money to help alleviate the impact of the global credit > crunch. > > The Bank, which agreed to some of the demands, released another L5 billion > for the money markets. The stock market, which dropped slightly, is now > closed until Tuesday. > > HBOS shares recovered on Thursday, closing up more than 6 per cent. > > >
