PostScript: comeback.
I do not know when Morgan Stanley, by what means to get in before the book was published a book like the book, but. .
Are they really found out about it. In 1997, in early October, my former boss in carefully checked every word in the book. At the same time.
I began to adapt to a quiet life, while teaching at the University of San Diego School of Law, improve my golf game while, wanting. .
Sunny, warm places through the decades.
I imagined the book was published in response to: Morgan Stanley's response to a brief "no comment"; I did the same. .
About me is a traitor; derivatives of outsider disgust, or investment in more cautious. Unfortunately, my.
Forecast record worth mentioning - since 1995, I predicted the stock market crash a year; since 1999, all my. .
Forecast for Kansas University basketball team won the National Championship Champion. This time, my prediction was wrong.
Within weeks, Morgan Stanley launched a media war; my former colleagues call me a traitor, but not because of me. .
Big insider fraud, but omits the most interesting stories (such as the earliest call me one person said, I only.
Touch the fur). Derivatives outsiders shouted bitter, but not because of the derivatives market over-act, and. .
Because there is no early accession to the industry. In a particularly bad times, Ireland several business school students e-mail.
Mail proposals to the job I asked, a determined young man engaged in derivatives business, and even that F. . I. . A. . S. . C. . O. . "Indeed..
Is the best I've ever read. "I find myself making a monster.
If the management of Morgan Stanley's decision not help, these people may never have heard of my book. Is this. .
A decision to ignite a media war, institutional investor magazine's senior editor HAL Lux later called friction.
Root Stanley's "public relations nightmare." .
6 October 1997, Morgan Stanley, on Monday issued a statement, a nightmare start. This press release.
Kind of: "The book is clearly the contents of grandstanding from the truth. Consistent professional services to customers is one of Morgan Stanley..
Cutting business Foundation, we have never engaged in conduct contrary to the client to trust, to match words with deeds. Our records. " 我。.
Do not know who issued a statement that while the idea. For me this was totally unexpected. And newlywed wife of three months I lived in. .
San Diego, are adjusting to college life amenities. My days are calm and meditation of the day, if you have more than one.
Phone is far too harsh. .
The next two days, my phone rang foot there are thousands of times.
New York Times financial reporter 彼德特鲁埃尔 is one of the earliest calls. Teruel such as the top financial record. .
I wonder who is engaged in work of gratitude. And most of the bankers, they understand more deeply into the market, the better.
Education, and his more humorous learned, and so on. But the rich and Wall Street money brokers, compared the salaries of journalists. .
Pitiful. Nevertheless, in one of the few occasions that journalists have a priceless privilege: standing on the moral high.
Ironically, such a noble degree of Morgan Stanley investment bank. Teruel is clearly enjoying this opportunity. Please start with him not to stay,. .
In the article references a Morgan Stanley spokeswoman Jane Mary macfee den, and very passionate defence: "I am not.
Morgan Stanley are all saints, but the company's culture was not described in this book look like. "He also cited Morgan Stanley..
The Chief Counsel of the Nissan Nigeria Bourne shell, CEO John mexes never I say shouting "I smell the blood.
Taste, we kill it! "(Later, there sources said Meck said this, but the explanation was wrong). Sangnaiboen..
Also from the economic point of view to Morgan Stanley defence--if your company is really like as described in the book by the customer, will eventually be lost.
To customers. This excuse seems a bit odd, since I often wonder why there is no real loss of Morgan Stanley customers. .
Households, especially in the light of recent high-profile on the company's case.
Soon joined by other journalists. Wall Street Journal's Patrick McGinn Han and Annitala French to Morgan Stanley. .
Efforts described as a "fire fighting". Kimberley hills McDonald nostalgic New York Post style wrote a long article, full-page.
Concentration describes oral sex, strippers and other deviant behavior, the title is called "indecent to expose." CNBC's 阿曼达格罗. .
Cardiff hosted talk show in my lens consecutive--I teach Latin American financial markets, on the Blackboard.
Wrote a "market failure" in large letters. A few days later, news has spread all over New York, London and Tokyo trading floor, my book sales. .
An empty and received a second, third printing orders. On 8 October 1997, F.. .A .I. .S. .C. .O.. at online bookstores.
Amazon, ranked the third best-selling book, in part because the book is also stored in a warehouse in North Carolina, do. .
Quickly get the book only method is to order online. Scheduled publication date as far back as October 8, my Publisher and. ..
I can not believe my eyes. .
Gentle college life is concluded.
The next few months, I have heard stories of derivatives far beyond my imagination. As Morgan Stanley. .
Employee, I have the opportunity to see a company Insider derivatives operations. Now, as just attack Wall Street will lay eggs.
Golden Goose outsider, I thought I would be banished, and could not have inside information. But I did not. There are several within a few days. .
An insider, customers and brokers called me and told me their horror story. The initial call is never what my people:.
I just touched the fur. .
I will share with you the story of some of the absurd, and provided over the past year in derivative products to the latest news of the disaster. Now the record.
Derivatives obituaries is almost a full-time job. Recently, a large number of transactions increased again. You read this text. .
The market is likely to have more than one million dollars (it is estimated that in 1998 the figures in 1976.
Between 1 trillion to 80 trillion U.S. dollars), is the astronomical to 1000000000000000 into. I can not resist the abuse of the late Senate. .
Member of the Cuervo ruite Dirksen famous impulse: here, there's a tsumoi tsumoi, soon you mean big money.
Last year, the derivatives market can be summarized in one sentence:. .
"They come back!".
Financial markets echoed the 1986 horror film Ghost II in chilling lines. Derivatives proved once again. .
Is a horror movie. 1994-95 years in financial markets caused billions of dollars of losses in the structural instruments and lever swaps also.
Back; destroyed Barings Bank, Orange County, tumbled the Procter & Gamble has the specter of a comeback. In my opinion, the sequel also. .
More frightening.
Derivatives is still invisible and omnipresent. Time bomb hidden in our portfolio in ticking. .
Whether you are informed that most investors continue to face the dangers of derivative products, typically by a mutual fund investment (Yes,.
Including Fidelity funds) and pension funds (yes, including the TIAA and CREF). Me find my new home is located in the San Diego. .
GE 33 billion in public employees pension fund invested a lot of derivative products, this isn't good news. Bought by me.
A mutual fund, I also have a derivative product, and I bet you are too. If you still do not believe me, making phone calls. .
Talk to your Fund Manager or look at your Fund, and then prepare to tears. Of course, Wall Street does not have a drop of the eye.
Tears. For the bankers, the derivatives are still profitable, in part because fund managers are willing to pay a premium to bear. .
Without the risk of disclosure to investors, on the other hand, it is because other buyers do not fully understand their investment. Derivative products so that WA.
Wall Street was the best year ever: Last year's bonus rose 30 percent. Derivatives sellers ecstatic. .
Many buyers are satisfied with, at least for now--ignorance is a blessing. 30% of derivatives professionals predict the next.
Years there will be substantial losses. .
Attitudes toward derivative products remains distinct. Trading predators, billionaire George Soros warned derivative.
Products will "destroy our society"; Nobel Prize winner, millionaire 默尔顿米勒 countered that they "make us..
The world more secure. Both of them at least one wrong, but what a? most market participation.
Miller agreed that the views of those who believe that derivatives have a positive effect, it allows the parties to hedge or speculative transactions more rows. .
It is valid. George Soros (I) the minority view considered derivatives containing the seeds of destruction, and no one.
Really understand its risks. .
No matter which side you are unable to avoid two conclusions: first, the derivatives in the financial markets in recent years, fanatical fear.
Panic and the collapse of an important role to play; Second, no one - even two masters - to understand that role over. .
Cheng and reason.
Here I will specifically describe some of the latest incident, in front of a sequel to the story: "Ghost II: derivatives come back." .
Over the past year's most concentrated derivatives activities in Asia. It is estimated that the value of the derivatives markets-hundreds of thousands of million.
Dollars, but no one knows the exact number. Some market participants are worried that Hong Kong regulators and even pension funds. .
Proposed to prohibit derivative investment. In the summer of 1997, Japan and other Asian "Tigers"--Korea, Indonesia,.
Malaysia, the Philippines, Singapore, Taiwan, and Thailand - the situation was good. July 2, 1997, Thailand has finally. .
Give up the linkage system (prior to the exchange rate according to the Thai baht in Thailand's trade balance and a basket of foreign currencies), Thailand.
Baht against the dollar, dropped 17 percent, on and on Dec. 20, 1994 Mexican peso collapse same day. .
The consequences are disastrous.
Remember when I saw Boston in the first mouth-watering Thai baht structured notes it? Note that there are similar. .
Exchange link invoice credit by high levels of corporate and Government support agencies (such as General Electric Credit Corporation and the Federal stay.
Home loans Bank). Surface of these instruments are safe and attractive to pay high interest rates, but if you are unfortunate. .
On 2 July 1997, the structural instruments held by baht for your loss. Other Asian tigers will soon step in Thailand.
Footsteps. Asian banks and the early nineties, like the Mexican bank, through equity swaps, full return swaps, options. .
Futures and more complex derivative products in the domestic market and currency on a lot of leverage to speculation. Now they are facing the military.
Capsize. Between a few months, investment in foreign currencies in Southeast Asia fell 50 percent, or even more. .
Structural instruments and swap impact not just Asian regional business losses, as a result of these derivatives, and Thai baht.
Devaluation of the ripple effect far beyond the local market. If Thailand could affect the wings of butterflies Qingchan weather in the United States, imagine. .
What currencies can result in consequences! the world of individual investors, fund managers, hedge funds are even suffering.
Harm. .
The majority of the most lethal of derivative products in the shop "instead of the Exchange transaction. For example, in the swap.
Asian banks have one pair of home, usually U.S. or European banks. The banks expect swaps payments on the house, such as about. .
Items, like if I and you bet $ 10 to the Asian market out of the question, I hope you win is giving money. In other words, the Asia-Pacific region.
Chau's banks and companies do not lose money to the organized exchanges, they lose money to other companies, mainly the West Bank. .
The final question is, if Asian Bank bankruptcy, their family may be owed money back no..
The OTC derivatives trading characteristics lead to great risks. For example, the banking regulators warned that the United States. .
Country risk of the Bank in Korea for more than $ 20 billion. Korea, an investment banking and securities companies fresh Beijing, speculative baht duiri.
Yuan appreciation, on the home is JP Morgan. Thai baht collapsed, due to JP Morgan Securities SK about 350 million U.S. dollars. Including Citigroup. .
Group, the Chase Manhattan Bank, Bankers Trust, other banks in their respective disclosure risk over a billion dollars of Asia. Pair.
Home will result in the repayment ability and the risk is called "credit risk." So-called "credit events" occurred before the credit on the family. .
Risk is always regarded as irrelevant subsections; subsequently became more important than in the core issues. The United States is keen to save Asia.
Asian financial crisis (also banking on the house), credit risk derivatives caused a major reason. .
The Asian financial crisis, the worst one is Victor niederhoff--the famous squash and derivative products.
Events, hedge fund managers in the Wizards. Niederhoff dilemma that the modern capital markets closely, and derivatives. .
The magic effect of investment products.
June 1997 Niederhoff also high above. His autobiography, "speculators education" is popular, he managed over. .
Over $ 100 million investment, many of his personal property. He were welcome, respected, and his impressive record.
Amazed: the past fifteen years the average annual yield of 30% in 1996, the rate of return is 35%. Unfortunately,. .
Niederhoff also in Thai baht on speculation. Thailand for wings of the butterfly trembling, he took us $ 50 million, almost.
Half of fund management. .
Loss of us $ 50 million or more derivatives broker seems to have the same reaction. I play 20 in Las Vegas.
Point, got into a similar pattern of behavior, you may have a similar experience. You bet hand Blackjack, bet 100 U.S.. .
Element that may even lose. You lose. Then you would bet $ 100 that lost US $ 200 very much.
The. Besides, maybe you'll win this hand, do not break even on it? You lost. Since then, you lost the hand they hand, it is. .
Soon lost US $ 500. You really wouldn't want to lose so much money. What would you do? about me? of course not.
On the contrary, you increase the stakes, hoping to win back their money. Is such a model, you look upwards, there is a trembling mind. .
Sound: "if I win the capital, I never gamble, never bet. " 。.
Imagine back in the 500 U.S. dollars plus five zero. This time the voice of your mind to listen to how? If this is 5000. .
Us is your own money, the sound can be very frustrating. But if the money, Louis Brandeis judges.
Words, "other people's money" mean? Suddenly, to increase stakes win back their money it seems a little too true. For the 50 million people. .
USD, you will not be asked anything worse? try? if you win, you will be able to fanben, nobody will care for you temporarily.
Loss. If you lose, you really think more people lose the 50 million U.S. dollars have anything to do with it? Paid with the first 50 million U.S.. .
Element, you can determine that the individual does not invite you into a Thanksgiving dinner. In this way, niederhoff also and in him.
Before the others - Barings Bank Nick Leeson, Kidd's 约瑟夫杰特, in Friends of the bank's Bang in Yasuo large. .
And after the Bank's head-start even further, on a higher risk investment to be able to generate sufficient profits.
To make up for losses in the baht on. Then the Niederhoff has become a rogue trader. .
To September, he has missed some losses, but those baht investment performance still dropped by 35%.
October, Niederhoff start audacious, sold S & P 500 index futures put option. S & P 500. .
A few futures as speculators provided leverage effect, on the s & p 500 index (tracking the market value of the maximum of 500 stock) performance into.
Bank speculation. You can sell that futures contract to sell options, and other instruments on the same put option. I remember the first chapter. .
In the options knowledge? put option is in a certain time on a certain price or index based financial instruments. Use the former.
Surface Conway sports car example, if you buy puts, you may buy today, the future use of 1000 U.S. dollars to 40,000 U.S. dollars sold. .
A national sports car. If the price drops, you'll be able to make money. Suppose a month later, the national sports car prices fall to every vehicle.
30,000 U.S. dollars, your profit is 10,000 U.S. dollars (based on selling options, you have the right to 40 thousand U.S. dollars to sell a Conway sports car, but..
You're in the market to buy this car just thirty thousand), minus one thousand dollars of option fee.
Put option buyer hopes the price drop, it is hoped that the price remains the same seller, or up - but no matter. .
How not to fall. The more prices, put option seller must be paid to the buyer, the more money. In our case.
, If a car's price fell Conway 30,000 U.S. dollars each, and we sold 100 of the put option, we will loss. .
Loss of 90 million (US $ 1 million less we get 10 million option fee). Morgan Stanley to sell high risk products.
Claimed that "the downside risk is limited to initial investment", the sale puts this strategy can be no such advantage, you could lose. .
All, or even more. Put option sellers of imagination, he/she's loss may be (there is.
Prices generally do not fall into the negative). .
October 25-26, that weekend, niederhoff seem safe and sound. No events in October--notwithstanding.
My book was published. Niederhoff waiting, hoping to become waste paper options expired, so he can earn premium further. .
Reduce losses. He hoped that the market remains stable or rising--is never decreased.
October 27, 1997, Monday, U.S. stocks plummeted 554 points, about 7 percent. Under the Standard & Poor's index. .
Fell 64. .67 point sink .97.876. On this day and in 1987 on "Black Monday" is almost an entire decade.
Years. 7% decrease not really crash, is very weak compared with Black Monday. But Niederhoff, this. .
Monday was a mortal blow. To Wednesday, he suffered from the winding-up of the Fund, the investor million dollar assets losses a null.
Guess who's Niederhoff investors? Yes, for me, 3.3 billion U.S. dollars in the San Diego-based public employees retirement. .
Gold. San Diego, well done!.
February 9, 1998, Regis hotel in New York I've seen Niederhoff. Where we participate with, "Yan. .
Health product strategy magazine sponsored the second people gathering at the Palace of derivative products. In recent years, newly published derivative products professional periodicals.
Things were much less than a million, "Derivatives Strategy," is one of the only comic strip to a. Participants are organizers. .
Special invitations, including a majority of the derivatives industry celebrities niederhoff is luncheon speaker. I also have.
To the invitation to lead the "dealer in the market irregularities," the symposium. I'm not sure why they're looking for me. .
But I know it is not because I am a derivative product industry "Palace". This award belongs to two Nobel Prize.
By Harvard Business School, Robert C Merton and Canadian-born professor at Stanford Business School Life Meyer Schultz. I was pregnant. .
Suspected they find me because derivative product specialists needed to vent their anger, I guess pretty well.
Niederhoff statement combined with his philosophical and financial expertise in both areas, fascinating. After lunch, I wish he was. .
All legal disputes in successful victorious in my book signed, wrote a ridiculous, "by Pat Frank.
Chennai, the fate of me and you so close. Cheers, 维克多尼德 Hough. "I will always cherish with the fall of this derivative..
Products include books.
Schultz himself to see Merton and strange. Because now I am also a professor, I certainly appreciate the poor but talented cross. .
Overflow of scholars, not rich but often hopelessly Wall Street bankers. Merton and Schultz is crossing the chasm between the two.
Bridge - their intellectual and material as rich - and their wealth not only comes from a million-dollar Nobel. .
-Bonus (they are on 15 October 1997 because derivative product success and winning at Morgan Stanley.
That the "publicity-seeking the truth" statement was published in days). On the one hand, they found the Black - Schultz options set. .
Price formula, the calculation of option price differential equation is a modern financial economics. On the other hand..
As Long Term Capital Management, Inc. (headquartered in Connecticut, the scale of 6 billion U.S. dollars of assets hedge funds invest primarily in..
Fixed-income securities and derivatives) consultants and partners, they earn a lot of wealth. I would like to know, let them.
Obvious success aside, they make money on the early twenties mad abuse their research and indignation. I am full of jealous. .
Envy of staring at their advanced suit and think long term capital management company equity returns, I guess they probably think.
Does not matter. .
Merton and Schultz, and other derivative products are delicate Palace obscured niederhoff recent losses. Most of them.
Number of derivatives market participants tend to avoid as much as possible to discuss substantial losses. You may have heard or risk aversion. .
Loss aversion, I put this phenomenon called aversion to disclose losses. For example, your horse loses a thousand dollars, but to tell you.
Friend (or partner) "lost a little bit" or "get even." Unfortunately, this silence means that many of us. .
Never tell the truth. A lot less than $ 100 million loss openly, and they really should be publicly available, such as. ..
Fruit of these people are still losing money on the capital market to raise funds even more so. Chat time, your friends may not mind. .
Have you ever lost money on the racetrack, but once you start to borrow money from them, they probably want to know the truth.
Information failure is not just Asia's problem. If a large company in the United States on the loss of derivatives tens of millions of U.S.. .
Element, which you can find many reasons to not disclose those losses, but has a legal basis. For example, suppose a IBM.
Billion in derivatives losses, it does not need to tell investors that is because the relative size of the loss to IBM's earnings. .
That is not a "substantial". On the other hand, if you are a small company lost $ 100 million, it is also possible to find other concealment.
Reasons. Losses caused by the fact that people certainly do not want the public, investors suffered losses unwilling to let the whole world knows him. .
' Error.
Despite the disclosure of loss aversion Worldwide, the problem is especially serious in Asia. Risk capital market derivatives consultant. .
Product consultant Leslie Aguilar have warned, "in South-East Asia, has begun to issue is just the tip of the iceberg. "The recent period of time.
Rooms have occurred since the derivatives losses in Asia are numerous, but most of all in the investigation and the limited disclosure. .
Bank London branch of derivatives trading losses up to a baiyiriyuan (about 8 million), but no.
Some people blink an eye. May 1998, the Commodity Futures Trading Commission since last Friends of banks 20 billion U.S. dollars in losses. .
US $ 150 million on its fine, but no financial news. Asia (except Japan) biggest investment.
Bank, one of Peregrine in Hong Kong in the Asian market plunge after the company announced a 37 million U.S. dollars of stock and derivative production. .
Commodities trading losses, but denies that there is a total loss of us $ 1 billion.
Zurich Group believes them, agreed to pay 200 million U.S. dollars Peregrine White, but later prove actual loss. .
The Zurich Group withdrew from the deal, the Peregrine on 12 January 1998. As far as I know, although feilv.
Bin also collapsed, but my pride and joy, my name's "FP Trust" is still in the payment of interest. Although I do not know. .
This transaction-specific information, I'm still in my calendar on the trust's maturity date, July 1, 2009. At that time.
I will certainly pay attention to the new story. .
If you haven't heard, Japan's fourth-largest securities brokerage company, mount a stock suddenly because at the end of 1997.
For the so-called "balance-sheet event" loss failed. In the same year in November, two other Japanese companies, Hokkaido Takushoku Bank and Sanyo. .
Securities also collapsed--November is not a lucky month.
Hill Securities in late 1997 set up a self-derivatives department, just one year after notice of the 2 billion U.S. dollars. .
Losses and declared bankruptcy. Merrill immediately rushed in and hired a best brokers, and their derivatives traders.
Are in short supply. Without you so much for "balance-sheet event" words, Japan's fourth largest securities brokerage firms to fall apart. .
My first question is, "off-balance-sheet events mean?" If a company is able to kill the company.
Risk on the balance sheet of the "sheet", and that the balance sheet of what use are they? My second question is "derived..
What role product? ", there are other issues plaguing me a long time, but until now have not yet found.
Answer. .
However, I found another Japanese company derivatives losses of some answers. This case has not been wantonly in the United States.
Report, the victim is a lactic acid producer Yakult club company. Yakult's headquarters in Tokyo, a bit like Avon (make-up..
Products direct marketing company) and Angel ice King (United States of America, a lactic acid products company). Bacitracin zinc and Avon, launch.
Middle-aged women home direct sales of its products, only difference is that Yakult woman wear the green (not pink) jacket, pushing. .
Is insulated vehicle (not the case). Health products and the Angel of the Bing Wang, fermented milk drink made of health.
Products; but it seems to me far less than its flagship beverage ice angel king. Yakult drink is pale pink, sweet and sour taste of drinks,. .
Lactic acid bacteria containing digestive aid. The company's basic business models and Avon, Angel ice King like: low-cost, high-quality, high.
Sales. This is a successful program, 60 years Yakult drinks sales in Japan, the steady rise in the overseas market accounted for. .
Have a stable market share.
But from the 80's, Yakult Riga started its formula into the complex financial material, which deviated from the good. .
The main industry. At that time, Japan's economic prosperity, the market has risen steadily upward, beverage sales also, bacitracin zinc is cash.
Ample. The operation of the company decided to start a "privileged trust" the special fund. At that time many Japanese companies have set up similar. .
Trust, investment in shares or other financial products. Privileged trust biggest advantage is the company shall make annual declarations of trust's profits.
Therefore do not pay taxes. .
Privileged trust in the 1980s to bacitracin zinc have brought more dual benefits: its huge return on investment, and no payment of any.
Profits and taxes. Investment income in the trust in the accumulation, but no reported disclosures. However, Japan in the early nineties, "broker bubble." .
After the stock market also fell, the establishment of a privileged trust investment companies suffered a heavy blow. Suddenly, these companies.
As trust and investment have suffered significant losses, but they are not willing to close the trust and realize a loss. With the loss of aggravated. .
These companies are faced with two choices:. dissolution of the trust or continued use of the trust are at high risk of gambling, while at the same time.
Pray for new speculative to compensate for past losses. Yakult chose the latter. In 1991, it took a desperate change. .
This combined with the policy. While most health policy is a secret, but a few derivatives industry insider.
Yakult is very understanding of persons the privilege of trust losses, as well as it seeks to win back their money strategy. Strange things happened: Yakult into Chicago. .
The big brother options exchange. An analyst and later recalled, "long ago and we all know that sooner or later there will be a significant loss.
Damage to announce. "In fact, Yakult, back in 1996 quietly announced on a relatively small loss of derivatives, big..
Approximately $ 40 million. 20 March 1998 more bulletins, bacitracin zinc at least $ 800 US $ 10 million in losses, because in the past.
Four years without the disclosure of derivatives trading. Shares the same day (Friday) plummeted from 820 yen to 600. .
20 yen, trading volume or quantity result day. A production of lactic acid, how can companies in the derivatives on the loss of nearly one billion.
Yen it? The answer so far is unclear. More surprisingly, the estimated amount of losses changing. Initially, all 800 000 000 1. .
$ Losses from derivatives trading, and later went on to say that as a direct result of the derivatives is only about five billion losses;.
To May, that figure has rebounded to 710 million U.S. dollars. Every month or so, the number necessary to amend 100 million U.S. dollars,. .
I don't know exactly which one should believe. Obviously, the non-derivatives loss is traditional trust and security investment. I do not know.
Why, that investment losses are so outdated even comforting. Even if we accept the most conservative estimate can not. .
Elimination of doubt: a production of lactic acid from the company how can in derivatives on the loss of 500 million yen?.
Yakult, Japan shareholders that their investment is a lactic acid beverage companies, like P & G shareholders that their investment. .
A detergent company. They are all wrong, unexpected find their investment company in interest rates and foreign exchange.
The gamble. Yakult P & G shareholders than the shareholders also suffered heavy losses, they lost an average of half of the investment, but it can be. .
Can not receive any compensation through litigation. In contrast, the Procter and Gamble's shareholders had more luck--bankers agreed to close.
Two hundred million U.S. dollars of the cost of court settlement, disputes that figure line derivatives investment banks generally pay claims in the total percentage. .
40-70 settlement practices. (Case evidence favourable to the Procter and Gamble, including Bankers Trust, one of the tapes.
One broker said: "These transactions like Russian roulette, each the equivalent of doing a deal on the addition of a bullet."). .
Bacitracin zinc more employees also had good to go. The company announced plans to lay off 300, 20 per cent reduction in remunerations, and management.
Even the suspension of bonuses to directors. In fact, the suspension of the Executive Directors of bonus program is only for a year. Yakult within about trading. .
Curtain bankers say it in a series with Nikkei index option of structural instruments in the judgment. Another message that health more.
The deal includes the Nikkei swaps and foreign exchange swaps. Yakult also reported that the loss is because the wrong interest rates. Standard. .
Do transactions is not disclosed, but the real reasons for this must have been very difficult to bacitracin zinc and more to those who push the cart of the Green female.
Disabilities to explain why they lost their jobs. According to Japanese tradition, Yakult blame the loss of a person, vice president of Bear. .
Valley direct. The majority of trading decisions are made, and he seems to understand these transactions. Is he told.
Yakult directors should adhere to, the investment will eventually lose out (or just his desire?) Now appears, whether I Kumagai. .
Understanding these transactions is also a problem; in any event, he immediately resign from Office. Chairman of the Board of health. In this tour.
Month before, the Japanese Ministry of Finance officials have committed suicide because of bribes and guilt, Yakult, the two men did not step down after him. .
Dust. Bacitracin zinc is also a cultural event for more interludes: this lactic acid company team baseball team, bacitracin zinc more yanzhi team. Lucky.
, The huge derivatives losses do not affect The Japanese-League champions. Yakult's losses precisely at that season. .
The first match before the announcement, yanzhi team leader of the Qing dynasty in the tournament as Sakai prior day to guarantee health more players will not be betrayed him.
Are. Players to be worried, Yan Team earned first-line players average 49.68 million yen, about equal to five. .
Ten million. In Tokyo this level just above the poverty line, and the United States paid compared to the more pale in baseball--plus SEO.
Sheffield year 1998 revenues and more than 1 billion yen. .
If the experts, health more losses are just the tip of the iceberg ", you will be able to understand why the United States.
Japan has long been the so-called "Big Bang" deregulation of the reform plan is skeptical. Yakult may not. .
Strangled by loss, but it certainly is not the only conceal the derivative losses of the company. Derivative products in Japan's current tour.
Baseball seems comparable degree in the rules of the game such a chaotic situation, Japan's financial markets, how can do self. .
By and fair? this deregulation affect change?.
United States, there are many derivative products company suffered greatly, both new onset of a loss the previous year, also 1994-95. .
Years of derivative products in the aftermath of a disaster. The most prominent non-continuous story of Orange County mo. In December 1994, more than 19 losses.
Billion U.S. dollars, and since then, the county has made countless lawsuits member of the California Bar Association, extremely busy. At. .
In 1998, an Orange County 15 lawsuits against 28 defendants, including 20 Wall Street firms.
My former employer First Boston, UBS is the first company agreed to settle out of court, paid 52.5 million U.S. dollars; this. .
First Boston and two former employees also had paid $ 87 as and Orange County bankruptcy-related bonds by mistake.
Lead investor compensation. In 1997, in order to ensure that Orange County does not sue the company and its employees, Merrill Lynch agreed to pay Orange County. .
US $ 30. Merrill Lynch has also agreed to pay $ 19 million settlement with bond investors. UBS first Boston in the same.
One case, paid 990,000 U.S. dollars. Orange County adhere to recover in civil proceedings Morgan Stanley and other companies, the Federal. .
Investigation is still ongoing. In June 1998, Merrill Lynch eventually hold, paid a huge settlement fee billion.
In the settlement of litigation in the history of Wall Street finished fifth. With hostility, a former Orange County Financial Officer Luobotese Wing was fined 10. .
Million, imprisonment for one year. However, in a sentence of eight months later, in October 1997 was released. Sebastian Jung Deputy Matthew unto.
Sentenced to imprisonment for three years, but to May 1998, he was still appeal. In 1996, the Orange County bankruptcy in the comeback from now. .
Everything is good. Also many other litigation out of court settlement has been reached. For example, Pratt and Whitney Group affiliates agree to supervision.
Institutions to pay a fine of 500,000 U.S. dollars due to Pratt & Whitney's deceptive to mislead investors, the volatility of the Fund; the fund investment. .
Mortgage support derivative product has undergone substantial losses (Pratt and Whitney has neither admitted nor denied).
However, the most active participants in the derivatives market is the market place rather than the courts. Rumors that the German Mount. .
Root Grenfell in summer of 1997, the Asian market slump loss of tens of millions of dollars in; the world's largest bank and one of the PNC..
Birth to a 190 million U.S. dollars in derivatives losses; in 1995 Pennsylvania had more than 70 school districts to invest in German capital. .
The management company and financial management science company, they also lost approximately 7 million dollars. National Westminster Bank salary.
Hired Morgan Stanley's top derivatives professionals, but soon suffered a 120 million U.S. dollars the interest rate options trading. .
Losses. Union Bank of Switzerland is also the loss of several billion US dollars, luckily they sell in a timely manner, or to losses of billions.
Regulators accused of manipulating some traders use stock index options, including the Dow Jones Industrial Average Index and the London Financial Times. .
Reported 100 index. Congress and the Securities and Exchange Commission, there are numerous hard-liners of Auditors also attacked the derivatives trading PHI.
The lack of disclosure. .
At the same time, seeking AAA credit rating of the transaction is also increasing. Following the mid-1990s of mortgage bonds (CLO).
Trading patterns, several large banks completed the CLO transaction (profit of course, huge). This does not seem artificial. .
Some transactions, high-rate worries. A major derivatives company lawyer's explanation I puzzled: "for the sake of giant.
Squeezing the amount of commission is acceptable to customers, because profit entirely unknown; However, sales to customers explosive derivatives. .
Is wrong. The important lesson is: squeeze is good that the explosion was bad.
Latin American derivatives market has also been a revival, however, attained during the early nineties when the mainstream much more. Mexican silver. .
Line has undergone another Carnival at merger; Argentine bonds is also pretty much; Brazil's currency stability, since it has been.
Complex index of inflation is put away. May 1998, throughout Latin America have the active options and futures market. .
Field.
Commission of certain derivative products has not declined. In fact, I only touched on this issue fur underestimated Yan production. .
Products to create profits. Some traders believe that I have been misled, but mistakenly believe that Morgan Stanley is the field of "players".
One hedge fund adviser for Morgan Stanley's Derivatives Products, two years, earned more than one billion U.S. dollars between the dismissed, he said Yan. .
Health product industry, "Morgan Stanley is also a loser". In November 1997 the derivatives strategies "magazine.
My conclusions (Morgan Stanley made a lot of money) made quite extraordinary comment: "He thought of a lot of money in fact..
Is not a lot of money. He thought that there will be hurt even if rich people, this world there are a lot of people will be hurt!.
Earn six million U.S. dollars a year is not surprising that hedge fund positions have to pay just for the record so much money account manager. . ".
Seven-digit yearly salary be startling to rely on your own, but as far as I know, the typical family of the year.
Not six million U.S. dollars into. .
More than just a Commission, derivatives trading volume to rise. Derivatives after years of darkness, now.
Reputation. Chase Manhattan Bank as a senior manager recently concluded that "the derivative is no longer a dirty word.". .
According to the international swaps and Derivatives Association, 1997, the interest rate and foreign exchange tradition of derivatives trading volume increased by much.
About 50 percent. Long-suffering growing credit derivatives business in the same year four times, reaching 400 million U.S. dollars, but also. .
Continues to grow. Recent industry consolidation is also dedicated to complex derivative products of synergistic effect, generally derivatives heavyweight.
And lightweight combination. Update Church of products every day there: mutual fund options, real estate futures, weather derivatives. .
(Yes, the weather--some people bet on climate change and trends). Derivatives and strength-regression.
I am the domestic derivatives gains and losses resulting from the discussion must stop. I am sure I missed lots of another. .
"Scratch coat. "But you know the basic situation.
Securities and Exchange Commission seems to have been inspired, at last formally adopted regulations have forced the disclosure of listed companies. .
Derivative products and risks, while still giving the company a lot of autonomy to avoid disclosure of certain information. More on this.
Complaints, the Securities and Exchange Commission Arthur Levitt noted that studies have shown that regulation of the country is expected to cost 40 million U.S.. .
Element, while he was a Director of a charitable fund once the Fund Manager of the misuse of derivative products in a loss of us $ 30.
Our top securities regulator has finally seen the abyss, which at least allows us to feel comfortable. .
Morgan Stanley Dean Witter and company merged companies in numerous statistics are among the best in the column. But in 1998.
Motor ability tests on the first derivative, it ranks only sixth District, far behind rival Goldman Sachs. Why is Morgan Stanley. .
Danli derivatives business is not like any other business as first? the company as a derivative product family reputation seems to be.
Declining, but recently several lawsuits against Morgan Stanley is also not conducive to the natural image of the company's efforts to restore. Mount. .
Although Stanley site root clear derivatives classified as one of the company's strong point, there is no reference to the company in legal proceedings.
The same prominence. Although I unsure of the regulatory authorities to grasp the material was shown in March 1995 on my test. .
Consider leaving the company at the same time, seven Morgan Stanley equity derivatives traders manipulate is obviously taking OTC transactions only ten stocks.
The price to the Nasdaq 100 index options from some of the trading profit. According to the allegations, Nasdaq regulators in. .
1998, April 13, on penalty of one million dollars, Morgan Stanley and suspend the seven traders trading qualifications. No..
Over a million dollar fine would be unlikely to cause any losses for Morgan Stanley. Violation of the investment bank on a fine of one million. .
Dollar give serial killer, I'm afraid and issuing a summons as valid ticket for speeding. Also, don't forget to also appeal to the road. 5. in 1998.
Month, Morgan Stanley is still the appeal process. .
NASDAQ has no regulatory authority press release describing the event, vagueness was incredible, and Morgan Stanley.
The allegations seem to understand very complex. The New York Times reporter Leslie Eaton first card is a financial report of the incident a few new. .
Smell the workers, read the article and Eaton, and after talking to her, I concluded that the program actually phase of Morgan Stanley.
When simple. .
The following is what I can do best guess: Morgan Stanley to participate actively in Nasdaq trading. When the company selling it.
Internationally does not hold stock, it is in the "short" the stock. If the stock price down companies can benefit from. Company. .
View stock price will drop you can choose to be empty.
On the other hand, companies can also sell short stocks to hedge the call option holder. You probably remember, buying options given. .
Holder in a specific time at a specific price to buy securities. By selling the company in the share price dropped profit because.
This can eliminate or reduce risks call option (call option when the stock price dropped the price down). In other words,. .
Short positions to offset the effects of a call option multiple positions (the relationship between the previously mentioned black-Schultz formula does.
Set. This formula describes the conditions established under the hedge in the options need to buy the number of shares short). And the Dow Jones industrial level. .
All index, NASDAQ market value of the first 100 shares also form an index, the name of course called the NASDAQ 100.
Index. In 1995, this index is based on the first day of each stock transaction prices. You can trade with Namibia. .
Stark 100 index options for the subject. If you bought the index call option, you need to pay a fee in exchange for the option.
Specified price at a specific time to buy the power of this index. This way you wish to index constituent stocks rose, rose more. .
Number, the greater your profit. NASDAQ 100 index options per month on the third Friday of the expiration. In 1995, Morgan 's.
Stanley in the two options expire on Friday (March 17 and Oct. 20) held in two positions: one held the same day. .
Expiration of the NASDAQ-100 index call option; on the other hand, selling five only index constituent stocks. On the surface, the company.
Positions at least in part on the obliterated. If the five index constituent stocks fell, the company's index call options will lose money, but it will. .
Profit from the positions, and vice versa.
The question is: If the two positions in the opposite direction of change, there is no way to profit on both sides of it? Morgan Stanley appears, answer. .
Case is in the affirmative. Methods like this:.
1, Friday morning, the first one pair of each stock quotes, but the bid price higher than market levels. For example, if Novell star. .
Phase four of the closing price is the sum of fifty dollars, reported US $ 51. In this way, 51 dollars as included in the price of Novell.
Nasdaq 100 index. If all the constituent stocks on Thursday's closing price is 50 U.S. dollars, while prices are at five. .
$ 11, you may make the index rose from 50 to 51. If you hold index call option, which means that you make.
Money, and about each option one dollar. .
2. don't false high prices on transactions, immediately reduce the price. You absolutely do not want to do in the original quoted price. Cases.
For example, if Novell Thursday's closing price is 50 U.S. dollars, you reported that the 51 U.S. dollars, if true to 51 U.S. dollars to buy. .
You'll have a dollar losses. You do not want to lose money, so immediately revoke quotations, the sooner the better!.
3, lower purchase price after the patient fell, and then in the low-cost "cover" their short positions. When you short, you sell self. .
Has no stock, that is, afterward you will need to buy and sell stock to pay the delivery obligations. Of course, you want to buy stocks.
Votes, or "cover" their short positions in the price as low as possible. 51 U.S. dollars do not cover, such as Novell fell to 50 U.S. dollars, even. .
Buy us $ 49.
Nasdaq regulators say Morgan Stanley have done so, but did not complete the final step. In the two weeks. .
Five in the morning, Morgan Stanley for each stock quote of the day, the first price is higher than the previous day's closing price, the elevation of the means.
Number of call option prices. Morgan Stanley is not in the high-price trading, on the contrary, lower price, and in the low cover of the air. .
Cartridge. In the process, regulators seize the company handles. This is not so complicated?.
Nasdaq regulators investigating the transaction occurred in the United States, however, whether the Nasdaq regulators, the Securities. .
Voucher Exchange Commission, or as far as I know of no regulators do not understand what I'm here to act. These acts are.
Elsewhere outside the United States, which are even more transactions than any other I have trouble, I never opened a number of ways. .
The truth. But I still had to lift these deals, I can find is very compelling, I hope I can contribute.
People who read this book to further unearth the truth. .
Also remember that Morgan Stanley to packaging for derivatives trading of "vector"? recoiled special target company.
And trust can be established in the United States or abroad, of which the most profitable trading tool called the re-packaging the assets, referred to as RAV (see..
Chapter 6).
I do not no surprise that Morgan Stanley is still using one of the most unusual, most kept secret in a register. .
Special company in the Cayman Islands. The company's extraordinary history used a variety of names, sounds come with some kind of God.
Secret. The company started in September 1, 1988 registration, are catching up with the dawn of the modern derivatives. The beginning it was. .
Named "and air co., Ltd.", a few weeks will be changed to "Hurricane co., Ltd.". I don't know why this company.
Name will be changed so quickly, but from the "wind" to "hurricane" of the change indicates the company a lot of higher risk transactions. .
"Hurricane" is used for several years until the company began creating "RAV" transactions. 1993: March 24, this.
Mystery company's name changed again, this time into the RAV International Limited. I know this name has been used up to now. .
At the moment. The company is hidden in the dark, Morgan Stanley will also do our best to keep it. However recently, Morgan.
Stanley has repeatedly used the RAV International, called the "RAVI". .
Let me tell you some of the specific situation of RAVI, so you can guess, Inc. will use it in..
What kind of deal. First, according to the Trust Agreement, RAVI shares registered in the Cayman from the charity benefit held purpose. .
Access to tax benefits. RAVI has no valid shareholder, is neither a Morgan Stanley subsidiaries/affiliated companies, nor is affiliated.
Its associated companies (disclosure of material information Morgan Stanley has been to emphasize this point). The end of 1997, RAVI board. .
Is Paul Neil and Jon jinrui de Morgan Stanley derivatives operations in Asia, two Senior Managing Director. I used to.
Superiors in New York was once RAVI Bide Yu Patterson also a director of derivative products, but when he left the Department to "nursing home" to the time. .
He was kicked out of the picture. According to the laws of the Cayman, RAVI does not have to submit any financial statements (audited and unaudited).
So you are unlikely to understand any of its details. .
If you invest the RAVI release financial products, worry about the Cayman Government to amend the taxation act resulted in lost taxes. RAVI.
Benefits, you need not unduly worried. Morgan Stanley has long been thought that, as RAVI Assembly Speaker from there for the Cayman. .
Special exemptions. Immunity is based on the name of the company's initial winds Ltd, probably like this:.
Chartered Tax Act (revised). .
Commitment to tax exemption.
Tax concessions under the Act (amendment) the provisions of Chapter VI, is hereby awarded the following commitments to the [RAV International Limited] by. .
Companies registry certificate under company law (Amendment) No. 128 chapter incorporated the concessionaire:.
1, all the subsequent enactment of any of the profits, revenue is value-added tax laws are not applicable to the concession company or industry. .
务； 。.
2, the franchise company's stock, bonds or other interest not to pay the tax or any property, estate properties. .
Tax revenue.
This commitment from the December 13, 1988 shall become effective twenty years. .
In my hometown of Kansas, special interest groups in the legislation on special treatment. Senator Robert.
Boteduoer best at is through a variety of legislation safeguarding the interests of farmers. But I never actually thought of legislation. .
So you can tailor. I imagine the Parliament asked: "do you want to, we'll give you a piece of legislation. You.
Like what? . ".
Best yet to come: RAVI not only don't have to pay tax in Cayman, no tax, or other business registration.
Number, no identity. RAVI is the spread of the ultimate secret weapon derivatives, information about its the only way to exercise. .
Ask Morgan Stanley, or access to the articles of Association (you probably can be found in the British West Indies, George Town, Grand Cayman company note.
Registry to find the file). Or you can also try RAVI registered office address: PO Box 309 Georgetown, but. .
Don't hold much hope. In the past, through the sale of, create derivative works from, RAVI primarily re-packaged class of transactions, customers.
Around the world. In recent years, Morgan Stanley, I do not know what kind of use RAVI sales of derivative products, but if the book. .
Readers have found, be sure to let me know.
As you can see and discover the truth hard to be difficult. Moreover, the regulators took more time for another fight with. .
-Effective monitoring of complex derivative products. If the Securities and Exchange Commission is busy with prosecutorial base case--Insider.
Transactions, sales of false triad shares, etc. - how they can and predators competition? Moreover, these predators hidden in the Cayman. .
Islands, subject to special protection, tax legislation does not fulfil the duties of disclosure, and use the email address from public scrutiny?.
You may think that writing a book or interview will tell the truth. But not too many examples of this, I do not think. .
What Wall Street firms would accept my job application. In my book, I witnessed another to Morgan Stanley.
The press leaked the secret fate of employees. I do not mean Morgan Stanley has done for me, but in the other. .
Twenties employee Philip Potter..
Published on Morgan Stanley F. . I. . A. . S. . C. . O. . A few weeks after release, October 19, 1997, Sunday. .
The New York Times article described Yale Physics degree of Morgan Stanley analyst, 25-year-old Philip.
Porter spare time to spend money like water. Porter describes the recent purchase of 50 inches TV, 3500 U.S. dollars in labor. .
Men watches, 800 USD for customized suit and $ 80 order shirt (white collar and cuffs and white French), and second.
100 U.S. dollars for shoes. Porter did not reveal any company secrets, not about any transaction, or even no mention of Morgan Stanley. .
He just put himself..
Early next morning, the company president "knife Meck" to Porter called his office - his fried squid. At least. .
More about Porter were dismissed reports says so, but in fact more likely to be a Porter's immediate superior Jeff salsmann told him.
Resignation. In any case, Monday is the Potter's last day at the Morgan Stanley did not stay a moment, not six figures. .
Bonus.
Since Porter in The New York Times reported the next day lost his job, if I publish this book also underway at the Morgan Stanley workers. .
As you can imagine my fate? I'm glad they had moved to and Morgan Stanley headquarters in New York three thousand miles distant.
Place. .
Morgan Stanley also, at least, and other Wall Street firms. I am referring to sexual harassment on the job.
Phenomenon. Wall Street has always been discrimination against women for decades, and rarely punished for this. Morgan Stanley is far from the worst. .
In 1997, 1998, of sexual harassment case, I cannot refer to Morgan Stanley together with racial discrimination case involved.
So far, there is no Wall Street firms, including Morgan Stanley, including, in the significant progress made against racial discrimination. .
Morgan Stanley's two black employees complaints a contains racial content of e-mail, after the company said that they were charged.
Enhancement therefore blocked. Claims 30 million U.S. dollars in this case dragged on for years, finally February 10, 1998 out of court. .
Reconciliation. The e-mail is sent in October 1995, it is said that tells of the stereotypes of blacks speaking manner jokes. I..
Never saw the joke, but because this case to not disclose the number (which means big) settled. .
The joke is a must. While Morgan Stanley denies having committed any error in, or revocation of three should be responsible.
Manager job, and send e-mail retention of employees look. .
As sexual harassment, I do not no surprise I found my comments once again only touched the tip of the iceberg – even including those that are closed.
In pickles, employment in the beauty factor, exotic dancers, prostitutes and other sexual escapades. Journalists 莎伦克鲁姆 asked. .
A 50-year-old female brokers, Wall Street work environment for women is as I said, full of difficulties and shame.
Shame, she replied: "My God, I bet.". .
The broker is not the only trait. Just ask 25 charged with Smith Barney corporate female sexual harassment.
One, or the company millions of dollars in settlement cases involving 22,000 female employees of it. Or again, ask the legislature. .
Wave Baum company's seventeen employees, in April 1998, the Wall Street firms spent 175 million settlement against it.
Allegations of sexual harassment. You can also ask your female friends on Wall Street. Where the working environment is gradually improving. .
But the past year public allegations or will make your hair stand on end:.
In Smith Barney, women are referred to as puppy, bitch, and prostitutes. Male female brokers on the hands and feet, requested sexual intercourse, also. .
For female employees in the shape of the genitals. Merrill Lynch's women in the company party in strip wunv insult; they cause.
Not open enough punishment, but because of pressing harder and harder for men to be promoted. Li Bo Baomu company strippers, boos and oral sex. .
Request. Have a Manager in the Office and his Secretary having sex with the woman's body butter, multicoloured require employees to clean up afterwards.
Their "remnants of passion" (in a sense 谢莎伦克鲁姆 provide details). When a female employee's complaints as much a manager flashed. .
The penis to ask her for oral sex.
I think even the most hard-hearted trader on Wall Street will feel the last example too far, or at least different. .
Unusual. But in my estimation, Smith Barney, open, genital shape food will soon started to spread in the brokerage, and even become.
Fashion. .
I would like to know the Trade Hall now how many of these behaviors. The past year there are thousands of employees of Wall Street.
Training, the effect remains to be seen. .
Last question: "retail" in the battle against Morgan Stanley so captivating, when is there a chance? recently.
There are three cases against Morgan Stanley, the number of people a ray of hope. But they also reveal if you are brokerage firms. .
Division of the fraud and want to recover the degree of difficulty.
First look at Gregory N. . Delumengte the story. Delumengte hold face value of 50 million U.S. dollars of mortgage loans to bonds. .
(And Morgan Stanley used to construct the AMIT and CMO of MX transactions). He wants to sell when you call the Morgan's CMO.
Stanley, which agreed to 53.7 million U.S. dollars to buy back. You might think that trading ended at this time, and press. .
According to general criteria should also. Individual investors and banks reached a trading agreement, they are subjected to verbal commitments.
Constraints. Most transactions are transactions in the day under the oral agreement, and then written confirmation, the final exchange of cash and securities. .
But this time Morgan Stanley found it when determining the value of the CMO. These tricky mortgage derivatives production.
Products are too complicated, even if Morgan Stanley from time to time confused. In general, market participants will as from this error. .
About complex business cost of another.
But Morgan Stanley wants to take the error cost, on the contrary, it decided to renege. The next day, Morgan Stanley said that it wishes only. .
Italian bid $ 968 500 dollars, instead of $ 370 million. When Morgan Stanley (pass.
Through his agent) told Delumengte only to accept a lower price, Delumengte (through his agent) to Morgan. .
Stanley go to hell. You would do, but Morgan Stanley rejected drew Monte and refused to comply.
Trading Agreement. Delumengte only put into law a way out. Fortunately, he has the money, please can afford top 阿诺德波特 domestic law. .
Shixing as his agent. Morgan Stanley's most customers have no such lawsuits. The case and heavily involved in big.
Like the company's protracted litigation, May 20, 1997, and after more than three years elapsed between the incident, Southern District New York's. .
Danny Kan judge finally made a decision. Against nature, Morgan Stanley. Wash the judge considers that Morgan Stanley without the agreement.
Buy CMO, a clear violation of contractual obligations. His sentence Delumengte have 650 thousand U.S. dollars of compensation, plus 100. .
Range of interest and costs.
The second case against Morgan Stanley more. January 29, 1998, Queen chair area (commercial court). .
The Longman judge uncompahgre, Morgan Stanley has been the case. Both parties in a transaction out of PERLS..
Health and legal disputes. PERLS is the second chapter that the "wolf dressed in sheep's clothing" type of transaction, when my boss excited. .
In comparison to the naive customers trying to sell a lot of such principal exchange link invoice. In this case, a Morgan Stanley before judgment.
Straight to PERLS as the company specializes in complex derivatives outstanding example of the business. This was not a false statement, the judge also considered Mount Longman. .
Root Stanley build, sales ability "at PERLS in this field. "Unfortunately, Morgan Stanley.
Ability in the proceedings but it negative, it seems Mr. Pagelisi do not understand why things PERLS, and Morgan Stanley. .
Didn't bother to explain it to him.
Longman judge found a large number of exciting details and evidence, he thinks Morgan Stanley's defense unconvincing. .
He was surprised to Morgan Stanley international reputation as a "Bank" has fallen into such specious argument to.
Step. His conclusion is a major blow to Morgan Stanley: "I think Mr. PERLS on Pagelisi is not appropriate..
Investment. " 。.
While Morgan Stanley in this case only the loss of millions of dollars, but disgrace in the face during the hearing, but was. .
Judge suspected not shanlei. Morgan Stanley tried to bring my book "the Gallery of the truth", it categorically denied.
A respected jurist and under fully rational decision. Morgan Stanley also faces allegations of other investors, this. .
Case will be a costly precedent.
The third case of the plaintiff, Jim Luosi Kai Tak. His company in the web browser Netscape, and he would like to sell some of Netscape. .
Stock. Ross, Kate is a very successful outstanding engineer, but it is not a financial expert, and he sold the shares.
Relatively low ticket value, which is thousands of dollars. Morgan Stanley and Netscape are closely related in the 1995 underwriting. .
Netscape's stock IPO, but also to Netscape employees "waive the Commission" brokerage services. Therefore, the decision to Kate Ross.
With Morgan Stanley for his brokerage firm. .
Ross kaide sufferings may one day be in you, or-worse-has on you.
Happened, and you still kept in the dark. February 8, 1996 before the opening, Luosikaide issued to Morgan Stanley out. .
Sales of Netscape's stock of instructions. Netscape's opening price is $ 68, the price remains approximately 15 minutes. But Morgan.
Stanley did not sell in 68 U.S. dollars Luosikaide shares, nor in the opening fifteen minutes after the transaction. On the contrary,. .
Morgan Stanley has retained the directive until more than an hour later (accurately, 77 minutes) stock price began to fall into six.
15.5 U.S. dollars Luosikaide finally sold the stock. The average delivery price of just more than 65.5 U.S. dollars higher than a little bit. .
Ross, Kate to Morgan Stanley questions is simple: why is my price is US $ 65 per cent instead of six.
18 US dollars? . .
Initially, the Morgan Stanley on ignored Kate Ross, but he continued to call, email, or even identified.
Morgan Stanley lists all transactions that day trading information. Fortunately, that morning he had been tracked by computer. .
Netscape's stock price. After several months of investigation, he finally found the Morgan Stanley in price (such as $ 65 per cent) to buy.
Into his stock sold at higher prices before the Netscape's stock (such as 66 US dollars). No doubt, this is a. .
Customer front "false", for example, brokerage firm before the customer and sales transactions. Submitted to the NASDAQ Kate Ross.
Trade Commission complaint, the Commission again symbolic punishment of Morgan Stanley, only to impose a 35,000 U.S. dollars to it (not..
To 100 hours of attorneys ' fees), and the compensation for the loss of Kate Ross. In February 1998 a total of 10 days.
Lee agreed to settle the case, neither admitted nor denied its allegations. Luosikaide Ph.D. Massachusetts Institute of Technology,. .
He was the head of the bull-headed or Morgan Stanley. He told the New York Times: "I want to let the Morgan Stanley can no longer be this.
What easily treated. "Luosikaide proposed mandatory Wall Street companies to disclose their transactions, so that everyone can be..
To see whether we were a brokerage firm of fraud. Related technical infrastructure must already exist, and will not be too.
High. The only obstacle is to convince Congress or the Securities and Exchange Commission, which is worth attention. .
Ross, Kate, not satisfied with their own judgement, for Morgan Stanley, an attempt to win a broader range of investors.
Victory. However, this is the result of several successful does not mean a foregone conclusion. Although they enable investors to see a glimmer of hope. .
Investors can also be protected by a great challenge. If wall street trading so simple--basic.
Transaction processing - must exploit the public, and the only way is to sue to recover, then the individual investors in financial markets also. .
What's really fair chance? what's more, as well as sophisticated computer models, derivatives expertise and secret Cayman.
Islands company. We are in the end, what chance? . .
Maybe even we don't think we have better opportunities. We purchased a lottery ticket record highs, and cruise ships.
Casino overcrowding, legal, illegal gambling and financial markets development of comparable speed. Las Vegas is ranked the United States. .
Name of the first tourist destination, Atlantic Casino. Financial market and what's the difference? "in a nutshell, ripping.
Our culture is full of a gambling instinct, we can give investors the option to slot machines and gamblers on the same option. .
Limited: do you have the right, the pulling the handle to select the right machine, leave the casino right, but does not have the right to fair competition?.
June 1998. .
San Diego.
