Najarian brothers' trading records

[newwurldmn]

Easy, banks do it all of the time.
When you collude with trillions of dollars and the ability of credit creation you don't have to worry about losses.

There is a reason delta one desks are so very profitable. You've heard of every manipulation scandal under the sun, but yet the small fish get hung and jailed while the banks get by with a slap on the wrist small fine. Exchange traded manipulation is a bit more difficult than OTC, but who can compete against them? They can set the price for any asset in the world while not holding real losses. How? Because they wash trade with each other, and FINRA couldn't care less.

Let's say you have bank A with ten million shares of ABC company. They can purchase those shares driving up the price than bilaterally swap at an agreed upon price with bank B who conviently holds the opposite position or a similar swap.
Don't you think that's suspicious?

If a bank (cough cough) could do that and get away with it. Wouldn't they?

That's also how they get away with collecting dividends while not maintaining positions on their balance sheets.

I'm not saying it's right or wrong, I just know for a fact that primary dealers do that. Now, if you ask me how a company like Virtu could do the same I wouldn't have a clue.

Actually Delta1 desks earn because they have low cost of capital, huge balance sheets, and can avoid the "toll booths" to the markets that their customers can't. At the end of the day, their customers lean on the Delta1 desks balance sheet and then the delta1 desk can hedge the risk out cheaply in the market. It's not about manipulation scandals, though some of that happens (front running and not passing best execution); its about scale.

 

[ajacobson]

‘Beverly Hillbillies’ mansion is priciest in U.S. at $350 million