Nick Leeson was diagnosed with cancer whilst in Changi Jail. He is due for release after serving four and a half years of his sentence. ibid. commentary
Nick Leeson or as his publishers put it the Rogue Trader – Barings Bank was London’s oldest merchant bank, founded in 1762 ... It was about to meet its end at the hands of a 28-year-old employee. Nick Leeson was sent by Barings to the Singapore International Monetary Exchange in 1992. Crimes that Shocked Britain
Leeson was extradited to Singapore and sentenced to six and a half years in prison. ibid.
In 1929 years of booming prosperity ended in catastrophe. It was the biggest stock market crash since records began. First-time investors borrowed huge amounts of money to speculate on the market. Later thousands of banks failed. Millions lost everything. The Crash was followed by a Depression that spread across the world that lasted for decades and was a prelude to war. 1929: The Great Crash
Throughout the soaring market of the 1920s the Republican party stayed in power on the back of America’s increasing prosperity. Calvin Coolidge became president in 1923. An investor himself, he was notably silent on the speculative mania gripping Wall Street. ibid.
As smaller investors gambled with their life savings, they failed to realise that the odds were stacked against them. Men like Joseph Kennedy did not make their fortunes from picking the right stocks. The truth was they were cashing in on the gullibility of speculators. ibid.
Yet Hoover was not alone in his fears that the stock market bubble was about to burst. Days after the inauguration speech a prominent and highly respected banker Paul Warburg broke ranks with the Wall Street aristocracy and issued a bleak warning: ‘If orgies of unrestrained speculation are permitted to spread too far, the ultimate collapse is certain to bring about a General Depression involving the entire country.’ ibid.
In September the market became increasingly volatile. Behind closed doors President Hoover’s unease was growing. ibid.
Tuesday 29 October 1929: on Tuesday morning some of the most famous names in corporate America saw their share price plummet: US Steel, Radio, General Motors – stocks that had been symbols of the boom years. ibid.
It’s estimated that by the end of these five days trading $25 billion’ worth of personal wealth had simply disappeared. ibid.
In response to public outrage at the bankers’ dirty dealings President Roosevelt set up the Security and Exchanges Commission. It’s task to clean up Wall Street. At its head he chose a man who knew more about unethical practise than most: Joseph Kennedy. ibid.
In Britain there was a slump in manufacturing and millions lost their jobs. Germany still suffering from defeat in the First World War was hit even harder. ibid.
Never invest emergency savings in the stock market. Suza Orman
I don’t know where the stock market is going, but I will say this, that if it continues higher, this will do more to stimulate the economy than anything we’ve been talking about today or anything anybody else was talking about. Alan Greenspan
Markets can remain irrational longer than you can remain solvent. John Maynard Keynes
Trying to pick individual stocks is a trap. I can’t do it. Warren Buffett can, but hardly anyone else can beat the indexes over a long period of time. Ben Stein
Share sale, boiler room, hedge fund or bond fraud involves bogus stockbrokers, usually based overseas, cold calling people to pressure them into buying shares that promise high returns. In reality, the shares are either worthless or non-existent.
You are usually contacted out of the blue by a professional-sounding stockbroker who offers you investment opportunities that seem too good to be true. You are also promised free research reports, special discounts and ‘secret’ stock tips.
In reality, the fraudsters are cold calling as many people as possible, persuading them to invest in shares that are either non-existent, or so worthless they are impossible to sell.
The fraudsters may provide false share certificates and other documents to make the investments seem credible.
Once the fraudsters have squeezed whatever money they can from investors, they quickly disappear. Action Fraud online article
Stocks reached record peaks. And Wall Street boomed in a steady golden roar. The parties were bigger. The shows were broader. The buildings were higher. The moral were looser, and the ban on alcohol had backfired, making the liquor cheaper. The Great Gatsby 2013 starring Leonardo di Caprio & Tobey McGuire & Carey Mulligan & Joel Edgerton & Isla Fisher & Jason Clarke & Elizabeth Debicki & Jack Thompson & Amitabh Bachchan et al, director Baz Luhrmann
Organised crime has moved into our financial markets. Thousands of victims across Britain have lost their livelihoods. The most vulnerable are the prime targets. Tonight, the city of London police investigated a gang making millions. Fraud Squad I, ITV 2011
Fraud is the new goldmine for criminal gangs. 3.2 million people in Britain have become victims. Organised crime’s latest enterprise is to con people into purchasing shares in companies that don’t exist. ibid.
The City of London police have a specialist department tackling fraudsters nationally and internationally. They have identified 1,200 boiler rooms making criminals over £300 million. ibid.
Criminal gangs share the list of people they have conned. ibid.
The sale of fake shares requires a sophisticated network. Abrue’s criminal organisation uses bogus websites, shell offices, glossy brochures and mass-market emails. ibid.
George Abrue Gang - London - Sweden - Barcelona: Organised crime has moved into our financial markets. Thousands of victims across Britain have lost their livelihoods. The most vulnerable are the prime targets. Tonight, the City of London police investigated a gang making millions. ibid.
Fraud is the new goldmine for criminal gangs. 3,200,000 people in Britain have become victims. Organised crime’s latest enterprise is to con people into purchasing shares in companies that don’t exist. ibid.
The City of London police have a specialist department tackling fraudsters nationally and internationally. They have identified 1,200 boiler rooms making criminals over £300 million per year. ibid.
Criminal gangs share the list of people they have conned. ibid.
The sale of fake shares requires a sophisticated network. Abrue’s criminal organisation uses bogus websites, shell offices, glossy brochures and mass-market emails. ibid.
The City of London Police have arrested nine people. They are accused of selling millions of pounds’ of fake shares to hundreds of British victims. Fraud Squad II
Ringleader Abrue has been arrested in Sweden for assault. ibid.
Fraud is one of the fastest growing crimes in Britain. ibid.
Nine suspects are charged with sixteen offences. ibid.
Detectives have seized £1 million in assets from the gang. The victims have lost £20 million. ibid.
We’re all just one trade away from humility. Wall Street 1987 starring Michael Douglas & Charlie Sheen & Daryl Hannah & Martin Sheen & John C McGinley & Terence Stamp & James Karen & Hal Holbrook & Sean Young & James Spader et al, director Oliver Stone
The world of investing can be a jungle. Bulls. Bears. Danger at every turn. That’s why we at Stratton Oakmont pride ourselves on being the best. The Wolf of Wall Street 2013 starring Leonardo diCaprio & Jonah Hill & Margot Robbie & Matthew McConaughey & Kyle Chandler & Rob Reiner & Jonn Favreau & Jean Dujardin & Joanna Lumley & P J Byrne et al, director Martin Scorsese
Oh and I love drugs. ibid.
The key to success in this racket is this little baby right here – it’s called cocaine. ibid.
Equal parts – cocaine, Testosterone and body fluids. ibid.
There is no nobility in poverty. ibid.
I want you to overcome your problems by being rich. ibid.
But at 1.28 p.m. on that March 12th, a new and most sinister element joined the merry pandemonium: the roar of half a ton of the world's most powerful explosive. RDX, ripping up from the underground garage of the Bombay Stock Exchange (BSE), and into the pit where traders were just preparing for the lunch bell. Misha Glenny, McMafia
Consider the so-called corporate scandals of the early 2000s. The crimes committed by Enron included hidden partnerships, disguised debt, and the manipulation of energy markets. Henry Blodger of Merrill Lynch and Jack Grubman of Salomon Smith Barney wrote glowing research reports of companies they knew to be junk. Sam Waksal dumped his ImClone stock when he got early word of a damaging report from the Food and Drug Administration; his friend Martha Stewart also dumped her shares, then lied about the reason. WorldCom and Global Crossing fabricated billions of dollars in revenue to pump up their stock prices. One group of mutual fund companies let preferred customers trade at preferred prices, and another group was charged with hidden management fees. Steven D Levitt & Stephen J Dubner, Freakonomics