Tag Archives: deep capture

Fake News Reporter Preps Hit Piece On Powell, Byrne

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Update [3.41 pm, Jan 27 IST]:
I added another tidbit to my comments at DC on Jo Becker’s forthcoming hit piece on Byrne and Powell for exposing Dominion Voting Systems’ fraud:

https://www.projectveritas.com/news/new-york-times-begs-court-to-dismiss-project-veritas-defamation-lawsuit/

The link goes to an article demonstrating the abysmal incompetence and bad faith of major reporters today. The NYT was hit by a defamation lawsuit after it claimed that its video was unsourced, when there were multiple witnesses that the Times just couldn’t be bothered to track down. Then, the Times admitted that its own take on Project Veritas was based on what it read on Wikipedia….

ORIGINAL POST

Over at  Deep Capture, Patrick Byrne, former Overstock CEO and crusader against Wall Street and election fraud, has published an email from Jo Becker, a NY Times reporter asking for Byrne’s comment on a piece she is writing about his funding of Sidney Powell to the tune of $500,000 to research Dominion Voting Systems for fraud during the 2020 presidential election, a story she has heard from some unnamed source, she says:

“I have been told and am preparing to report that you gave the lawyer Sidney Powell $500,000 to investigate Dominion and the role it’s voting machines may have played, allowing her to continue to pursue this line of inquiry.”

As I blogged earlier, one of the most important things that digital warriors can do is to provide the  background of the pressitutes and hacks that pass for the 4th estate these days.

Jo Becker, with three Pulitzer Prizes under her belt, is clearly a mouth-piece for elite narrative-shaping, because, these days prestigious prizes are awarded mainly to those inclined to play that role.

My comments at Deep Capture summarize what a little research into her history found:

Patrick,

She couldn’t be bothered to research this story so she went with an obviously incorrect tip, if there really was a tip. She couldn’t be bothered to check her grammar, so she added an apostrophe incorrectly to a possessive pronoun.

Any NYT reporter who uses anonymous sources [“have been told”] to prepare media reports to help Dominion in its retaliatory lawsuit against Powell and Guiliani for over a billion dollars, is likely an asset of some kind and not playing fair.

That’s just an educated guess for now, but I would urge the digital warriors on this blog to check into it.
People have been asking what they can do. Well, here it is.

Delve into Jo Becker’s past reporting, any connections to the financial cabal, or even to Coomer himself, proof of Mockingbird status, ties to Dem financiers or hacks, affairs with Coomer’s lawyers, business irregularities, court filings, and the rest of her history. Give these propaganda outlets a taste of the medicine they dish out to others.

Particularly look for her stories covering Trump, RussiaCollusion, and any BFF status with Obama and Hillary associates.

This will extract a price from reporters…and the people behind them… for intimidating anyone who exposes cabal corruption.”

OK guys, got some background.
Becker is a 3x Pulitzer winning reporter, who left the WashPo for NYT.
WashPo is even more of a Mockingbird outlet than any other paper.
So that is strike one.
Strike two. She has an extensive background in negative reporting on Trump, including pushing Russian collusion stuff.
Strike three. Her husband Serge Kovaleski, also of WashPo, now at NYT, is the son of Fred K. who was a CIA spy. Kovaleski goes back decades in interaction with Trump. He is the guy with the disability who was allegedly mocked by Trump. I would say what I dug up in just one minute is already looking bad for her objectivity in writing about Dominion.

[I know I did not put hyphens in some places, but that is because my keyboard isn’t working right not because I cannot be bothered.]

 

  1. More on ”reporter” Jo Becker and her direct ties to HILARY ROSEN AND KEN MEHLMAN, whose interests evidently guide her reporting.

    Becker’s Pulitzer Prize was not given because her gay marriage book was great: it’s been trashed even by the Guardian, from the left, as a kind of rewrite of the history of marriage equality to give credit only to “rich, white” guys….

    What the Guardian should have said is that CREDIT WAS ONLY GIVEN TO DEMOCRAT ACTIVISTS.
    In other words, those kinds of prizes go to those who promote the CABAL NARRATIVE.

    Becker’s book promoted Chad Griffen, who ended up heading HUMAN RIGHTS CAMPAIGN, a very important part of the Democrat power base.

    Becker’s promotion of Griffen and Human Rights Campaign ties directly to HRC’s HILARY ROSEN, one of the most powerful women in politics, Democrat political strategist, lobbyist, CNN analyst, Trump hater, and handler of Hillary, Feinstein, and other swamp critters on the left.

    ON HILARY ROSEN’S TDS
    https://dldnews.com/two-elephants-in-the-room/

    “Hilary Rosen thinks that media will bitterly regret the day they have started treating Trump as a “normal politician.”

    ON BECKER’S BOOK
    https://www.buzzfeednews.com/article/chrisgeidner/the-new-book-about-the-marriage-equality-movement

    “But Becker’s reliance on the AFER (and, later, HRC) team — primarily lawyers Olson and Boies, staffers Griffin and Adam Umhoefer, and consultants [HILARY] ROSEN and KEN MEHLMAN]— is ultimately the book’s downfall. Almost any contextualizing of the case is done by people with a vested and open interest in advancing the narrative that Griffin, with Olson’s help, rescued a cause that Becker claims “had largely languished in obscurity.”

    Correction:

    Correction:

    I lumped Ken Mehlman in with Rosen as a DEM operative, but in fact he is a gay Republican…one time chair of the RNC, whose position at HRC misled me. A RINO most likely, as he seems to be very active in Green investments. He is chief of Environmental Social governance at KKR, one of the largest private equity firms in the world. We know that private equity is heavily invested in Dominion Voting systems…and I would guess Mehlman has a hand in investments at KKR…and they are likely invested in Dominion as well. Must find a concrete link for that.

SAC Case: Should Be About Racketeering, Not Insider-Trading

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Previous Mind-Body Politic posts related to Steve Cohen, in reverse chronological order (incomplete):

Rajat Gupta Trial: The other Goldman insider ring, MBP, June 10, 2012

More on Einhorn’s rumour-mongering about Lehman, MBP, April 15, 2010

Third-point, Goldman trading chiefs exist together, Madoff programmers indicted, March 18, 2010

Hedge-funds: top ten earners in 2007-2008, MBP,  January 13, 2010

Steven Cohen: third-biggest owner of Sotheby’s in 2009, MBP, Dec. 30, 2009

Secretive Steve Cohen on talk-show, discussing relationship with ex, MBP,  Dec. 27, 2009

SAC spin-offs fail, even when they succeed, MBP,  Dec. 26,2009

SAC subpoenas former SAC trader Grodin, MBP,  Dec. 25, 2009

Den of Thieves: Hedge-hogs go into SAC remote mode, MBP, Dec. 23., 2009

Sad SAC: Reuters spikes hedge story on complaints from Steven Cohen, MBP.com, December 22, 2009

Ex-Sith lady uses RICO on Sith lord? Mindbodypolitic, December 17, 2009

ORIGINAL POST

In his piece at Deep Capture, “SAC Capital (and Steve Cohen too) should be convicted”, researcher Mark Mitchell is far more sanguine than I am that Preet Bharara really means to go after the chief of the mega-hedge fund SAC,  Steven Cohen, after he puts away  various underlings, like Michael Steinberg and Indian-born Matthew Martoma.

“By fixating on the insider-trading angle in all his cases, Bharara, in my opinion, undermined the whole credibility of his prosecution and opened himself up for charges that he is merely targeting politically-viable low-hanging fruit.

Lila: As I’ve documented thoroughly at this blog, Bharara hasn’t had much credibility in his Wall Street prosecutions for at least a year now, regardless of how successful his other prosecutions might have been in some people’s eyes. I’m glad to see some main-stream voices coming around to my view.

I think I know a little about the Steven Cohen investigation, from my conversations with some of the principals at Deep Capture, where the investigation of Cohen began

Here’s a piece I wrote which they picked up, back in 2009:

Steve Cohen, the anti-Midas (Judd Bagley at Deep Capture):

Here are Lila’s observations on the matter:

1. The high number of SAC traders who seem to have gone off into their own businesses.

You’d think with all that money and the fund’s record as the most consistently successful in the business (only one bad year on record), their traders would stay forever. Quite the opposite.  People seem to have been leaving all the time to form their own businesses.

But SAC was also said to be a very tough environment. You produced, or you left.

So maybe that’s why Lee and Far, Grodin and Goodman, all left to found their own firms?
Could be. But I’m not convinced.

2. None of the spin-off firms seems to have been very successful.

Why not? Why couldn’t these hot-shot traders make money on their own?

The Reuters piece suggests that perhaps the SAC experience didn’t foster business ability. And that perhaps SAC traders flounder without SAC’s huge supporting cast.

But those things are likely to be true of other firms as well, not solely SAC.

Still not convinced.

Furthermore, consider this.

3. A spin-off fund that didn’t get money from Cohen ended up quite successful:

“Healthcor, a healthcare industry focused fund, had raised $3.2 billion by June 2009 since launching four years ago. The fund returned 25 percent in 2006, 18 percent in 2007, and was up 4 percent last year, when the average hedge fund lost 19 percent. In the first 10 months of 2009, Healthcor was up 7 percent.

Healthcor, founded by Arthur Cohen and Joseph Healey, opened without any financial support from SAC. In fact, soon after Cohen and Healey struck out on their own, SAC sued the pair, accusing them of breaching their employment contracts. The matter ultimately was settled. (Healthcor’s Cohen is not related to SAC’s Cohen).”

4. Even spin-offs that were doing well were shut down.

When Stratix started in 2004, it had $60 million given to it by SAC. When it shut down, in 2007, it was up 17% and had $530 million under management. Yet it shut down. Why did it shut down? Those numbers sound pretty good.

Another spin-off, Fontana Capital, started out in 2005 with $50 million of SAC money. It grew to $325 million by 2006.  But sometime in 2007, Cohen pulled out all his money. And in 2009, Fontana was down to $16.1 million, despite being down only 7.69%, compared to the average S&P Financial index loss of 57%. Again, that sounds like it wasn’t doing all that bad.

Reuters quotes someone familiar with the record of ex-SAC traders:

“So many of the ex-SAC people seem to have this model where they attract you with fantastic returns in the first year but in year two or three or four you get annihilated,” said a person who is familiar with several former SAC employees’ records.

Shades of Bernie Madoff….

Someone need to look closely at what happened to the money at these firms…

Lila:

Unlike some, I don’t think the fact that Bharara has an agenda means that Martoma is necessarily innocent, either.

I just think that even guilty as charged, Martoma is small fry.

He’s Cohen’s employee and by every account I’ve read, Cohen kept notoriously tight control of his business and tolerated no dissent.

He was not the kind of hands-off employer who can plead ignorance after the fact, even though that’s just what he did.

So Martoma might be guilty as heck, but it’s beside the point.

Insider-trading, outside the  issue of racketeering, is an irrelevant and minor side-show.

Insider-trading as part of systemic racketeering is another thing.

But Bharara hasn’t shown that, nor does he even look like he’s trying to show that.

He looks like he’s polishing his resume for a move into politics.

Anyway, here’s Mark Mitchell at Deep Capture:

Deep Capture: SAC Capital (and Steve Cohen too) should be convicted….

“During the trial of Martoma, DOJ prosecutors confirmed that SAC Capital traded on inside information provided by a doctor at the University of Michigan, which was all well and good, but as I documented in my book, SAC Capital not only traded on inside information from another University of Michigan doctor, but also profited from short selling Dendreon’s stock after multiple doctors (some of whom had demonstrably corrupt relationships with Milken) conspired to undermine Dendreon’s treatment by convincing the FDA (also corrupted by Milken and his associates) to delay approval of the treatment (which had been proven effective).

Some journalists and their Wall Street sources have argued that insider trading is an essentially harmless offense and that SAC Capital deserves leniency, but their arguments obscure the fact that SAC Capital’s insider trading has involved the wholesale corruption of the FDA and some of the nation’s most prominent doctors, all of whom have (as my book documents in detail) shown themselves more than willing not only to provide Steve Cohen and his associates, including Milken, with inside information, but also to undermine pharmaceutical companies with effective treatments while promoting companies (i.e. companies that are financed by Milken and his associates) whose treatments are actually killing people.”

Lila: Exactly. But then, in that context, Matthew Martoma is actually the lesser offender.

He was after all a portfolio manager, a trader. His employment depended on his getting an edge.

When he stopped getting that edge (illegal, as it turned out), he was fired.  Since Martoma has been attested to be very knowledgeable in his field by the doctors with whom he interacted, it follows that his competitors in the field must also have been getting their “edge” in the same way.

Industry-wide corruption of that kind isn’t best addressed by throwing the book at some representative pawn/small fish in the game.  That only makes the prosecutors’ office look biased or politically motivated.

Which it usually is.

If the nation’s top doctors were engaged in corrupt activities, why aren’t some of them being prosecuted before Martoma?

And, if Steven (don’t call me Stevie) Cohen is a racketeer, prove that.

Then give yourself a gold medal. Not before.

Note: See John Cassidy’s piece at the New Yorker, “Has Steven A. Cohen bought off the US Government?” November, 4, 2013

The Huggable Hedgie: Einhorn, Fairy-Tales, And The “Activist” Gravy Train

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Mark Mitchell at Deep Capture on well-known hedge-fund “activist,” David Einhorn:

“In addition, Allied was not, as Einhorn claimed, a massive Ponzi scheme. Einhorn had made the smarmy suggestion that Allied was a Ponzi because it supposedly raised money from the markets to pay its dividends. An SEC official told the inspector general that this claim was patently false – it was perfectly obvious that Allied legitimately paid dividends out of earnings. Continue reading →

Steve Cohen To Leave Trading, Says Vanity Fair

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Well, well, well. It looks like Patrick Byrne, Judd Bagley, Mark Mitchell and the rest of the estimable team at Deep Capture are having more than some effect.

Not only have the Germans and Austrians banned naked short- selling, Vanity Fair, our least favorite low-class, high-gloss magazine of the DC twitterati, tells us that Steve Cohen is closing up shop as a trader. Sith Lord Cohen doesn’t like the spotlight, it seems.  Maybe he remembers all too well what he was up to in the 1980s……even if Reuters wants to keep it buried.

Vanity Fair:

In the July issue of Vanity Fair, legendary hedge-fund billionaire Steve Cohen tells special correspondent Bryan Burrough that he might be ready to walk away from active trading. How big would that be? Well, says Burrough, it’s “a little like saying that God is ready to walk away from Earth.” In this video, Burrough takes the measure of Cohen’s controversial careeer—and offers his theory on why the reclusive banker granted the second in-depth interview of his 30-year career to Vanity Fair.

Gold, Silver, and “Suspicious Foreigners”

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Mark Mitchell comments on the CFTC hearings and the manipulation of trading of gold and silver derivatives (read IOUs):

“Maguire added: “What’s going to happen, if you’re an Asian trader, or a non-Western trader, who has no loyalty, or doesn’t care about homeland security or anything else, who says, now wait a minute, if I can establish in my mind that there is 100 ounces of paper gold, paper silver for example, for each ounce of real silver, than I have a naked short situation here that I can squeeze and they can go on the spot market which is basically a foreign exchange transaction, short dollar, long silver to any amount they want – billions, trillions — whatever they want, and they can take this market, squeeze this market, and blow it up…”

In other words, the problem isn’t just that criminal naked short sellers manipulate the metals market downwards. It is that they have created a condition where a foreign entity can merely demand delivery of real metal to induce a massive “squeeze” that sends the price of metals skyrocketing, putting huge downward pressure on the dollar. Meanwhile, says Maguire, with prices rising, “for 100 customers who show up there is only one guy who is going to get his gold or silver and there’s 99 who will be disappointed, so without any new money coming into the market, just asking for that gold and silver will create a default.”

This would be a point, except…except..

1. This kind of fraudulent activity in the markets in the West is going to be seen by most foreigners as a direct act of financial aggression against them, not just domestic market participants. You can’t admit that your entire market system is rigged in favor of US and European banks, and then expect that the rest of the world is just going to stand there and not retaliate in some way…with justification.

Turnabout is fair play. Defense is not offense.

2.  I doubt that Chinese, Saudis or any other foreigners are interested in squeezing the dollar, since they are the primary holders of dollars. In international markets, the dollar is still the reserve currency and most people save in it. Nor is the American middle class, loyal or disloyal, going to want a weaker dollar. They earn their money in dollars. The only people likely to attack the dollar are speculators, who will do it because they see a gain to be made from it. And the people most likely to do it successfully are the same people who are involved in manipulating it in the first place...the corrupt bankers and financiers who’ve got the most to gain in this and the least to lose.

Nothing that Paulson, Greenspan, Geithner, Summers, or Bernanke have been doing adds up to anything like a “strong dollar” policy. They’ve done everything but shout “bail” to dollar holders.

Kingsford Capital And The Captured Media

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Mark Mitchell at Deep Capture has some interesting details about the extensive influence of hedge-funds, specifically Kingsford Capital, on the reporting of stories in the financial press:

“Another focus of my investigation at CJR was the appalling bear raid on a collectibles company called Escala. Not only was Escala the victim of massive amounts of illegal naked short selling, but a hedge fund convinced the Spanish government that Escala’s parent company, based in Madrid, was fleecing investors in philatelic collectibles. Continue reading →

Xmarks’ Top 20 Corruption Sites List Includes Deep Capture

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I just happened to notice this ranking of the most popular corruption sites and thought I’d post it as more evidence that the campaign against naked short selling isn’t some marginal “freak” show, as some of the financial blogs have tried to claim it is. Continue reading →

Den Of Thieves: Hedge-Hogs Go Into SAC-Remote Mode

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Update: Deep Capture indicates that they have some emails proving insider trading, so any attempts to delete files/emails by SAC and other firms might not be any good, since  the files just happen to implicate said firms in…insider trading.

Ah, the web we weave…etc. etc.

Terry Buhl at Hedge Fund-Implode.com reports that residents of hedgefund land are going into SAC-remote mode:

“Funds like Blue Ridge, Greenlight, Third Point, Glenview, and Maverick are cutting back on any contact with King Stevie. When we asked major players such as Jim Chanos and others if they’ve been pinging Stevie about a trade lately, you’ll get a very defensive `no.’ Why? Because word on the street is they all think FBI special agent BJ Kang, who is now dogging Stevie, has the goods to deliver the hammer soon in the form of  an indictment or arrest for insider trading.

Extra measures are being taken to hire data-miners to comb through any and all emails firms and their trading consultants ever sent to anyone at SAC in an attempt to erase them from internet memory. According to traders we talked with, they are even going as far as getting out of trades that might look similar to any of Stevie’s. So it looks like running due diligence on your `SAC risk’ to prove to your investors that you’re clean – like Larry Robbins of Glenview capital just did – is the new `killing it’.”

My Comment:

Just to recap.

*Steven Cohen is the multibillionaire chief of legendary hedge-fund SAC, which sits at the top of the heap among funds. Cohen, famously reclusive, is said to have had only one bad year of trading.

Now he´s having a bad time from the  FBI investigation of the insider-trading case against New York-based hedge-fund Galleon Group, which is proving to have teeth in it.

SAC has a history of elbows-and-knees-style trading practices, according to this 2003 Business Week article.

*The head of Galleon (which once managed $7 billion in assets), Sri Lanka-born Raj Rajaratnam was arrested, along with five others, on October 16  in a $17 million dollar insider-trading case brought by federal prosecutors and the FBI.

(The numbers vary: it´s $20.8 million, according to a later WSJ report, and $25 million in a NY Daily report)

*The case was unusual in that FBI agent B. J. Kang used wire-tapping for the investigation (normally used only in drug-related cases).

*The Galleon arrests were quickly followed by other arrests of  traders, lawyers and hedge-fund managers on November 5, including one Zvi Goffer, who, as the brains of the insider network, was referred to as “the octopussy.” This brought the total number of arrests in the case to 14 (Correction on 12/29: I read 20 elsewhere) and added another $20 million to the fraud, already the biggest in Wall Street history since the days of Ivan Boeksy in the 1980s.

*On December 16, Steven Cohen´s ex-wife Patricia accused him of hiding millions from her and of insider trading in a 1986 merger when Cohen was a young trader at now-defunct broker, Gruntal.

*Indicted on December 17 (December 15, according to one source) by a Federal grand jury  on multiple criminal counts of insider trading and securities fraud,  Rajaratnam  pleaded not guilty. Many of the charges against him carry upto 20 year prison sentences. The trial is expected to take place in the summer of 2010.

*The broker Gruntal has an interesting history, in that it seems to be the place where several of the biggest names on Wall Street (aka some of the most crooked players) crossed paths:

Bernie Madoff, Ezra Merkel (Madoff fund associate), Ivan Boesky (infamous 1980s trader), Michael Milken (junk bond innovator), Carl Icahn (famed and feared corporate raider), Steven Feinberg, ,…and yes, Steven Cohen:

From Deep Capture:

“Another of Madoff’s most important “feeders” was J. Ezra Merkin, who managed the Ariel Fund, which seems to have been designed specifically to raise money for Madoff’s fraudulent investment business. In this regard, the New York attorney general has described “Merkin’s deceit, recklessness, and breaches of fiduciary duty…”

While Merkin was “deceitfully” feeding the Madoff Ponzi, he was also a co-owner, along with Steve Feinberg, of Cerberus Capital Management, a fund named after the mythological three-headed dog that guards the gates of Hell.

Previously, Feinberg was a top trader for Michael Milken at Drexel Burnham Lambert. After Drexel, Mr. Feinberg moved (on Milken’s recommendation) to a brokerage called Gruntal & Company.”

Gruntal owed its existence to the generous junk bond finance that its parent company, the Home Group, received from Michael Milken. Its options department was founded by Carl Icahn, who later became a “prominent” billionaire owing to the junk bond finance that he received from Michael Milken.

When Icahn left Gruntal, he was replaced by a Milken crony named Ron Aizer, who proceeded, on the recommendation of Milken, to hire two traders.

The first trader hired by Aizer was, according to a reliable source, investigated by the SEC for trading on inside information that he received from Milken’s operation at Drexel Burnham Lambert. This trader is now a “prominent” billionaire and the manager of a well-known hedge fund. The second trader hired by Aizer is now also a “prominent” hedge fund manager, though he is not quite a billionaire. Both of these traders play important roles in the story of Dendreon. Carl Icahn, the founder of Gruntal’s options department, has a cameo role, too.”

There is more, of course, much more to the story, and many more names, including Michael Steinhardt, Marc Rich who was pardoned by Clinton for tax evasion and dealing with Iran against US law, and many others, but that would make this post far too long, so I will send you instead  to this page.…and this...for now.

(Of course, we could ask why hedge-funds with an edge get to be prosecuted, while governments with the biggest edge of all don´t  – but there, we won´t spoil the fun).

Mark to “Markit” Manipulation

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From Deep Capture:

“Another line of inquiry has not been pursued, however, though it is of equal, and perhaps greater, significance. That line of inquiry concerns the way in which the prices of credit default swaps effect [sic] the perceived value of all forms of debt — corporate bonds, commercial mortgages, home mortgages, and collateralized debt obligations — and as a result, the ability of hedge funds manipulators to use credit default swaps to enhance their bear raids on public companies.

If short sellers can manipulate the price of credit default swaps, they can disrupt those companies whose debt is insured by the credit default swaps whose prices are manipulated.  The game plan runs as follows: find a company that relies on a layer of debt that is both permanent, and which rolls over frequently (most financial firms fit this description). Short sell that company’s stock. Then manipulate the price of the CDS upwards, preferably into a spike, as you spread the news of the skyrocketing CDS price (perhaps with the cooperation of compliant journalists at, say, CNBC).

Because the CDS is, in essence, an insurance policy on the debt of the company, the spiking CDS pricing will cause the company’s lenders to panic and cut off access to credit. As this happens, the company’s stock will nosedive, thereby cutting off access to equity capital. Thus suddenly deprived of credit and equity, the firm collapses, and the hedge fund collects on its short bets.

Moreover, credit default swap prices are the primary inputs for important indices (such as the CMBX and the ABX) measuring the movement of the overall market for commercial and home mortgages.  In the months leading up to the financial crisis of 2008, short sellers pointed to these indices in order to argue  that investment banks – most notably Bear Stearns and Lehman Brothers – had overvalued the mortgage debt and property on their books. Meanwhile, several hedge funds made billions in profits betting that those indexes would drop.

It should therefore be a matter of some concern that credit default swap “prices” and the indexes derived from them are determined almost entirely by a little company with zero transparency and, it appears probable, a high exposure to influence from market manipulators. The company is called Markit Group, and there is every reason to believe that its CDS-driven indices (the CMBX, the ABX, and several others) are inaccurate, while the credit default swap “prices” that they publish  and which rock the market are in fact  nowhere close to the prices at which credit default swaps actually trade.

Last year, the media reported that New York Attorney General Andrew Cuomo had sent subpoenas to Markit Group as part of an investigation into possible manipulation of credit default swap prices by short sellers. This investigation, like Mr. Cuomo’s other investigations into market manipulation, have yielded no prosecutions.

The Department of Justice is reportedly investigating Markit Group for anti-trust violations. This investigation (which is reportedly focused on how Markit Group packages and sells its information) seems to acknowledge that Market Group has near-monopolistic control of information about credit default swap prices. However, if the press reports are correct, the DOJ has not considered the possible appeal of this monopolistic control to market manipulation.

“

My Comment

This isn’t the first time that Markit has been fingered.  Pam Martens wrote a detailed piece last year at Counterpunch called “How Wall Street Blew Itself Up” that blew Markit´s cover.

Now I´ve always suspected the indices (including Libor) are manipulated.  The fundamental problem in our markets is corruption..and that´s directly related to size and monopoly. That´s why you do need certain kinds of  “level playing field” or procedural types of regulation (not substantive regulation) to take care of the problem. I think this should also take care of Olagues’ caveat. The Deep Capture team isn’t confining its investigation to simply naked shortselling in the technical sense, but is expanding its work to the entire range of strategies involved in rigging the markets – insider trading, short-selling of all kinds, and the manipulation of indices. (Correction: I am referring to uncovered short sales, where there is no intent to deliver)