SEC thinks if you beat the market, you're a criminal

[Eight]

With all the bias from the intellectual community against trading profitably being doable I wonder just what would it take to clear oneself of SEC scrutiny? Revealing all your intellectual property maybe? Handing over one's trading scripts so they could "scrutinize" [steal] them?

One of the funnier threads on ET was started by some guys claiming to be, and seemingly they were, from Harvard or some school like that. They had all sorts of proof that trading successfully is impossible, were quoting Nobel Prize winners and all that good s%^t... finally somebody pointed out to them that they were on a site that was owned by a couple of guys that made $100 Million in their own lifetimes by trading!!

Later...

 

[ASusilovic]

Quote from flytiger:

Why? I told you guys a couple years ago, these clowns on the Street would ruin it for everybody. Now, there's no turning back.

But this is interesting. Markopolous was talking about Madoff's returns being "unattainable.". What was that? 10 %. But SAC did 30 year in year out with an asset base growing at an exponential level. And nobody said boo. Maybe because Met life, NY life, all the biggies wanted the returns.

But, really. What would you expect? It is a bureaucratic response to a real problem. Don't worry. They'll just grease the auditors. No biggie.

What about Paulson? Soros? Paul Tudor Jones?

What´s the SEC´s definition of these "hedge fund managers"?

 

[RewriteQuran]

Let SEC do it.
It'll create new jobs in the economy.

 

[flytiger]

Quote from ASusilovic:

What about Paulson? Soros? Paul Tudor Jones?

What�s the SEC�s definition of these "hedge fund managers"?

All the same. No such thing as an honest trade for these guys.

Thing about it. A mortgage loan office told me she went to her supervisor during the boom and said, "What the hell are we doing? We used to have standards. We don't have standards." The response was, nobody else has standards, and we have to compete.

Same here. With 20 and 2, or 40 and 2, that money is going to find a home. So, if SAC is doing something without penalty, Samberg had to do it. And as a matter of fact, in Aguirre's case against Samberg, Samberg's partner left him, and Samberg was ill. To get back in the game, he played dirty. Imagine liquidating Pequot what they are finding. It 's a big dirty inside game that's going public soon. The stuff they do is just unbelievable.

It's all about the time angle. Make that stock collapse today. Run that position now. And to do it, you do bad stuff. Simple.

 

[rew]

Quote from ChkitOut:

SEC Enforcement Division To Focus On Hedge Funds That Outperform The Market

March 28, 2011

In response to the Madoff scandal, the Division of Enforcement for the U.S. Securities and Exchange Commission is focusing on hedge funds that outperform market indexes by 3% on a steady basis. This initiative has raised a number of questions.

Recently, during congressional testimony, Robert Khuzami, the Director of the Division of Enforcement for the U.S. Securities and Exchange Commission (SEC), faced tough questions regarding the SEC’s response to the Madoff scandal. In response, Khuzami revealed an investigative initiative concerning hedge funds. Enforcement is now focusing on hedge funds that outperform “market indexes by 3% and [are] doing it on a steady basis." Khuzami referred to such performance as “aberrational,” and stated that Enforcement is “canvassing all hedge funds” for such “aberrational performance.”

http://www.mwe.com/index.cfm/fuseac...t_id/e6c28337-842e-4477-b83c-a3284fb35021.cfm

What a load of turkey turds. Lots of people had informed the SEC that Madoff's outfit was dodgy, and the SEC ignored them. So now it's just going to make suspects of any hedge fund that actually earns its 2 and 20.

 

[zdreg]

Quote from Timmy.Geithner:

This country has turned into a joke beyond the point of repair.

the above is worth a thread in itself especially the part beyond repair. i would not use joke in the title of thread if you want people to take you seriously and if you don't want some sensitive moderator to delete it or bounce it to chit chat.

 

[Moc Yeah]

Does this also count for trading desks at goldman and JPM that are positive over 100mm each day...every single day of the quarter?

The next thing you know... they'll go after baseball players that hit 70 HR's per year and claim that they are cheating the game! ohhh right.. hey barry.

Quote from ChkitOut:

SEC Enforcement Division To Focus On Hedge Funds That Outperform The Market

March 28, 2011

In response to the Madoff scandal, the Division of Enforcement for the U.S. Securities and Exchange Commission is focusing on hedge funds that outperform market indexes by 3% on a steady basis. This initiative has raised a number of questions.

Recently, during congressional testimony, Robert Khuzami, the Director of the Division of Enforcement for the U.S. Securities and Exchange Commission (SEC), faced tough questions regarding the SEC’s response to the Madoff scandal. In response, Khuzami revealed an investigative initiative concerning hedge funds. Enforcement is now focusing on hedge funds that outperform “market indexes by 3% and [are] doing it on a steady basis." Khuzami referred to such performance as “aberrational,” and stated that Enforcement is “canvassing all hedge funds” for such “aberrational performance.”

http://www.mwe.com/index.cfm/fuseac...t_id/e6c28337-842e-4477-b83c-a3284fb35021.cfm

 

[fanews]

as an investor/trader/ the SEC is 'useless' to me.

i mean the market participants pay $500 million dollars/year to keep the SEC employees employed. average salary of SEC employee cost what $100,000/year?

what does the SEC produce?

SEC creating jobs? wtf is this.. is making money illegal now?

in wall street if you can't beat the market you won't get 20% bonus

and the hedge fund manager gets fired if they don't beat the market. only way is alpha..beta is the market...alpha is the only way to beat the market.

investors of these hedge funds don't pay 20% bonus to have same performance as the index fund

Quote from RewriteQuran:

Let SEC do it.
It'll create new jobs in the economy.

 

[murray t turtle]

Quote from Neenisti:

http://dailybail.com/home/busted-robert-khuzami-sec-enforcement-chief.html

"BUSTED: Robert Khuzami SEC Enforcement Chief"

Keep in mind as you read that Citigroup was hiding - lying about - $40 billion of sub-prime exposure, and the CFO at the time, Gary Crittenden was fined a paltry $100k for his role in this blatant rape of federal securities law.

Khuzami who once promised to be a tough cop on the beat, allegedly broke protocol, held a secret meeting with his good friend - counsel for Citi - then instructed SEC staff to go easy on Crittenden and Arthur Tildesley, the lying curbskank at the helm of Citi investor relations.

---

The U.S. Securities and Exchange Commissionfs internal watchdog is reviewing an allegation that Robert Khuzami, the agencyfs top enforcement official, gave preferential treatment to Citigroup Inc. executives in the agencyfs $75 million settlement with the firm in July.

¡Inspector General H. David Kotz opened the probe after a request from U.S. Senator Charles Grassley, an Iowa Republican, who forwarded an unsigned letter making the allegation. Khuzami told his staff to soften claims against two executives after conferring with a lawyer representing the bank, according to the letter.
Citigroup agreed in July to pay $75 million to resolve SEC claims that the bank understated investments linked to subprime mortgages as the housing crisis unfolded. Gary Crittenden, who stepped down as chief financial officer in 2009, and Arthur Tildesley, the New York-based bankfs former head of investor relations, agreed to pay $100,000 and $80,000, respectively, to resolve related claims.

The agencyfs settlement was questioned in August by U.S. District Judge Ellen Huvelle, who eventually approved it. She asked SEC lawyers why the agency hadnft pursued executives more aggressively.

¡gThere has been nothing here that is being done to assure anyone that senior management whofs responsible, whatever level of culpability youfre talking about, is going to have any pain here,h Huvelle said.
¡According to the letter, the SECfs staff was prepared to file fraud claims against both individuals. Khuzami ordered his staff to drop the claims after holding a gsecret conversation, without telling the staff, with a prominent defense lawyer who is a good friendh of his and gwho was counsel for the company, not the individuals affected,h according to a copy of the letter reviewed by Bloomberg News.
Prince and Rubin

¡The agency also said in a filing that former Chief Executive Officer Charles O. gChuckh Prince and former chairman Robert Rubin were among executives who knew 2007 losses were mounting on mortgage assets that Citigroup was faulted for not disclosing.

Citigroup executives repeatedly stated in 2007 that the bank had reduced exposure to subprime mortgage securities by 45 percent to $13 billion, as investors and analysts clamored for information about the deteriorating market, SEC attorneys said in court filings.

On an Oct. 15, 2007, conference call with analysts and investors, Crittenden said Citigroupfs gsubprime exposureh was $13 billion at the end of second quarter and had declined during the third quarter.

The figure he cited omitted gsuper-seniorh tranches of collateralized debt obligations and financial guarantees known as liquidity puts that allowed customers to sell debt securities back to Citigroup if credit markets froze, the SEC said. Those products added more than $40 billion of subprime risk that the bank didnft disclose to investors, the SEC said.

=================
Neen;
SEC may or may not have given ''C'' preferred treatment in fining them;
but the private sector market [sellers/downtrenders in this case ] , in 1987 & 2007............................................ seemed to have a nice balance with both justice & mercy

 

[RewriteQuran]

Quote from fanews:

as an investor/trader/ the SEC is 'useless' to me.

i mean the market participants pay $500 million dollars/year to keep the SEC employees employed. average salary of SEC employee cost what $100,000/year?

what does the SEC produce?

SEC creating jobs? wtf is this.. is making money illegal now?

in wall street if you can't beat the market you won't get 20% bonus

and the hedge fund manager gets fired if they don't beat the market. only way is alpha..beta is the market...alpha is the only way to beat the market.

investors of these hedge funds don't pay 20% bonus to have same performance as the index fund

http://en.wikipedia.org/wiki/Parable_of_the_broken_window