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Sprint Corporation Message Board

  • gxk_cpa gxk_cpa Feb 26, 2012 2:03 PM Flag

    Insider Trading - Sprint & MetroPCS

    Apparently, the proposed acquisition of MetroPCS by Sprint was known by several "Insiders" who used that knowledge to make some serious Moolah on Wall Street. Sad. :(

    Shares of MetroPCS have gone from $8.01/share in early January 2012 to $12.93/share in AH trading on 2-24-12 (a 61.4% increase in a just over a month an a half).

    As we all know now, Sprint's wise BOD's thumbed down the deal proposed by Mr. Hesse in a meeting held this past Wednesday night. The "Insiders" went wild on Thursday and went on a buying spree. Sprint shares rose over 13% in one day (from $2.23 to $2.52 with a volume spike of 200%).

    How could these Insiders know? CNBC's well respected, David Faber did not break the news until Friday (via Twitter, no less)! One trading day before this announcement (Thursday), The Insiders covered their shorts once they were tipped off that Sprint's BOD said "NO WAY" to the over-priced buy-out proposal the previous evening (Wednesday).

    Normal investors were confused. Not the Insiders.

    Just another day on Wall Street. Where is the SEC? Where is the FBI?

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    • All speculation on why price moved...

      I personally think it moved on DISH's public statement to FCC on buying a network if their spectrum deal wasn't approved...LEAP, PCS and S were all up well over 10% on same day...The S/PCS deal doesn't explain why LEAP was up 13% that day....


    • I think you mean we are all going to lose again. You need to include yourself in that statement.

    • You're getting your Paulsons confused; but you're politics are very clear and you're going to lose again.

    • I bought Sprint at $2.23 and sold at $2.32. Had I known what the insider traders knew, I would have held and made 2 times as much. Insider traders owe me money.


    • Yeap!!

    • The SEC agency sued Fabrice "Fab" Tourre in 2010, saying he defrauded investors by not disclosing that hedge fund Paulson & Co. helped pick the underlying securities for a collateralized debt obligation (CDO), known as Abacus, and planned to bet against them.

      After reaching a $550 million settlement with New York based Goldman Sachs, the SEC filed a new claim against Tourre, saying he gave Goldman Sachs “substantial assistance” as it misled investors. The SEC said investors wouldn’t have invested if it had known of Paulson’s involvement in the portfolio selection.

      Tourre's lawyers have spent considerable resources in an effort to dismiss the case.

      Wisely, U.S. District Judge Barbara Jones (in Manhattan) last year refused to dismiss the case while narrowing some of the claims against Tourre. She said the SEC had met its burden for pursuing a claim that Tourre violated a law designed to prevent fraudulent sales of securities and should stand trial.

      The case is SEC v. Tourre, 10-cv-03229, U.S. District Court, Southern District of New York (Manhattan).

    • (....and don't forget)
      Abacus mortgage deal created by Goldman and Paulson, a New York hedge fund manager.

      On Tuesday, a U.S. Senate committee grilled Goldman executives about how the bank profited from a housing meltdown that nearly wrecked the global economy. The Securities and Exchange Commission has charged Goldman with defrauding investors by not disclosing that Paulson, who was betting that home prices would slump, had a big hand in selecting the shaky mortgage-backed bonds that made up the Abacus portfolio.

      The Abacus deal "was new and complex, but the deception and conflicts are old and simple,'' said Robert Khuzami, director of the SEC's enforcement division.

      "Complex'' hardly describes Abacus, which Goldman marketed to banks and other big investors in 2007 by way of a 66-page book full of terms like "tranches'' and "collateralized debt obligations.''

      Convinced the housing bubble was about to burst, Paulson, the hedge fund manager, searched mortgage data for bonds like FF11 whose underlying loans were apt to default. Then he paid Goldman $15 million to create an investment — Abacus — that hinged on the performance of risky bonds, many of which Paulson himself selected.

      "Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio,'' the SEC suit says. Meanwhile, Goldman "was telling other investors that the securities were selected by an independent, objective third party.''

      Within a year of Abacus' creation, enough borrowers in the Tampa Bay area and elsewhere were behind in their payments that 99 percent of the bonds had been downgraded. Abacus investors ultimately lost more than $1 billion, while Paulson made $1 billion.

      The SEC did not accuse Paulson of wrongdoing. But the suit charges Fabrice Tourre, a Goldman vice president who worked with Paulson to create Abacus and who realized the product would be a hard sell if investors knew of Paulson's involvement.

      On Tuesday, Tourre denied he had done anything wrong. But he once gloated over his role in a deal so complicated few understood it.

      "The whole building is about to collapse anytime now,'' he wrote in a 2007 e-mail to a friend. "Only potential survivor, the fabulous Fab(rice Tourre) standing in the middle of all these complex, highly leveraged exotic trades he created.''

    • OMG, you are lost. Geithner is GS. All five of them (Geithner, Paulson, Bernanke, Bush & Obama) are senior members of the "New World Order". This hidden organization controls humanity.

      Goldman Sachs created the worthless CDOs, sold Them To AIG, forced AIG Into Bankruptcy, got A $20 Billion Bailout, paid themselves Billions in bonuses, and watched as Tim Geithner covered it all up.

      Congressional lawmakers said the former head of the New York Federal Reserve Bank (Geithner) had presided over the 2008 backdoor bailout of Wall Street firms and a coverup.

    • Have you read too big to fail by Andrew Sorkin.

      Only guys who didn't know Lehman will fail are the poor retail schmucks.

      Same thing happened here.

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