Tuesday, July 22, 2008

Morgan Stanley was able to make massive trades on the basis of privileged information

Banks enjoy the fruits of their own recklessness

It is a glorious testament to the power and influence money can buy. Having almost single-handedly plunged the developed world into its worst financial crisis for more than half a century, one might reasonably expect the banks to be subject to some serious sanctions and rule-tightening from governments and regulators.But no. Nearly a year on from the start of the current crisis, senior bankers continue to enjoy the financial fruits of their misdeeds, safe in the knowledge they will never be called to account for their actions. Indeed, more evidence emerges today that the banks have been able to persuade regulators to loosen the rules even further, to allow them to make even bigger profits at our expense in the future.

Posted by jack c @ 03:06 PM (787 views)
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5 thoughts on “Morgan Stanley was able to make massive trades on the basis of privileged information

  • whiteknight says:

    It’s one rule for you. Whatever they want the rules to be for them.

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  • whiteknight your link to the Eq life article unfortubately isnt working – with regard to the Morgan S posting it’s now really quite unbelievable that we got to the point where they could short the HBOS shares safe in the knowledge that the rights issue was undersubscribed. When is insider dealing not insider dealing? erm when the Banks decide.

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  • It’s even worse than the article says. It’s ‘naked shorting’ – using stock they didn’t own but knew they would own because of the underwriting contract. See the comments under this article http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/07/underwriters_short_hbos.html

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