New York Attorney-General Eric Schneiderman has released an amazingly detailed account of criminal fraud on the part of JP Morgan but – as usual – fails to name any individuals to be prosecuted.
This is the game they play: Government prosecutors grab the limelight by appearing to be hard-liners on the side of truth and justice, but they seldom send any of the crooks to prison or even slap them with meaningful fines. Instead, they prosecute the corporations these con men control. Billions of dollars in fines are paid, not to the victims of bank fraud, but to the governments that employ the prosecutors. In the end, those fines are paid either by bank stockholders or, more likely, by taxpayers, who are on the hook for federal bailouts that go to banks so they can pay their fines.
Reuters 2012 Oct 10 (Cached)
A single unidentified computer program placed orders in the stock market and then cancelled them through high-frequency trading.
Since no actual trades were made, experts speculate that the goal was to confuse other computer programs for a second or two which, theoretically, would give floor traders a slight arbitrage advantage. We think this is just the tip of the iceberg and that non-professional investors are hopelessly out-gunned in a manipulated stock market.
Business Insider 2012 Oct 10 (Cached)