Hunt for £100m rogue trader after attack on HBOS share price

[realityhack]

They'll find a scapegoat IMO - It's surprisingly easy to cover your tracks, particularly if the real instigators bought late into this. 'It was a good opportunity, and a legitimate assumption to make that the stocks would rebound, your honour'.

If there's no paper trail, they're scott-free.

If there is - they deserve to be caught - which they will be.

[Moscow Mule]

I can't see that any crime has been committed here. Is it illegal to start rumours or to speculate on shares? No, case closed.
Useless fliping media....

Erm, yes it is. It's called insider dealing. Market manipulation isn't legal either.

Are you sure you're not in some trouble here SG?

[Moscow Mule]

If there's no paper trail, they're scott-free.

Everything is electronic these days. FSA are entitled to seize records from any regulated body they feel like. If you haven't got them, big fine. If they find you've done a naughty, big fine.

[realityhack]

Everything is electronic these days. FSA are entitled to seize records from any regulated body they feel like. If you haven't got them, big fine. If they find you've done a naughty, big fine.

Yep - I said 'paper' trail, but that's what I mean. A smart trader would have let this catch on word-of-mouth and let somebody else (foolishly) send the email. If not, then they're remarkably naive.

[Cyberman]

If these incompetent authorities banned 'shorting' it would stop most of this market abuse. It has always been my view that this practice should be stopped.

'Shorting' is where a person/hedge fund etc borrows shares in the market from an owner/s, to sell them and then buy them back when the share price has fallen. He then returns those shares to the owner, and the price differential in selling and buying back is his profit.

By spreading false rumours that push the SP down the shorter can make his profit. Simply banning shorting would go a long way to stopping market abuse IMO.

[roadster198]

They won't need extraditing from Columbia, we'll just get our friendly FARC rebels to kill him...

First thing I'll do..... sorry I mean they'll do is pay them off

[Moscow Mule]

Yep - I said 'paper' trail, but that's what I mean. A smart trader would have let this catch on word-of-mouth and let somebody else (foolishly) send the email. If not, then they're remarkably naive.

<conspiracy theory>

I think, for the scale of the cash involved, that there has to have been a cartel of banks involved in this one. Nothing will have been done over the phone (all calls recorded these days) or email.

</conspiracy theory>

If this is the case, the only way they will be able to track them down is through their trading record - if the banks/traders have been smart they will have policy documentation to back up their positions, if not they are screwed.

[HairyArsedBloke]

If these incompetent authorities banned 'shorting' it would stop most of this market abuse.

Why not ban anyone from selling anything for less than the all time maximum? Nobody would ever make a loss then.

....mutter, mutter, mutter, f...ing retards, mutter, mutter, mutter.......

[roadster198]

Come to think of it was this rumour not started on HERE!!!

I seem to remember reading about a bank with problems well early yesterday morning on here.....

D I S A P O I N T E D!!!!!! if I'd been quicker I'd could've made at least £50.00 from my £100.00 investment

[Moscow Mule]

If these incompetent authorities banned 'shorting' it would stop most of this market abuse. It has always been my view that this practice should be stopped.

'Shorting' is where a person/hedge fund etc borrows shares in the market from an owner/s, to sell them and then buy them back when the share price has fallen. He then returns those shares to the owner, and the price differential in selling and buying back is his profit.

By spreading false rumours that push the SP down the shorter can make his profit. Simply banning shorting would go a long way to stopping market abuse IMO.

This is one of AtW's favourites too.

IMO this would be too hard to enforce. You'd have to ban futures and options as well - basically wiping out a massive percentage of the available trades.

What you could do is ban folk from selling things before they have proof of the actual share in their pocket, but you'd just create more red tape for people to keep track of.