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Tuesday, July 31, 2012

Deutsche Bank To Lay Off 1900, As Meredith Whitney Predicts 50K Total Wall Street Layoffs

Deutsche Bank To Lay Off 1900, As Meredith Whitney Predicts 50K Total Wall Street Layoffs

We're Hiring: Sr Java Developer with Flex: (Top Financial Firm / Midtown NYC)



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Candidates MUST HAVE green card, US CITIZENSHIP, or valid current h1b with AT LEAST 3 YEARS LEFT.


Call or text 203-29-QUANT 203.297.8268 if you have any questions and are qualified for this role or others posted.

Please speak clearly if leaving a voicemail, and let me know the role you are applying for and if you have sent a resume or not. You may call or text at any time. All discussions and messages are fully confidential...

Email resume onto QuantRec @gmail.com & Quant at QuantRec dot com.

Goto http://www.QuantRec.com for updates on jobs, bookmark it!

Also include the best times to reach you over the near term (this week & or next week).

Candidates MEETING MOST OF the SPEC below will be contacted PROMPTLY.

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Sr Java Developer with Flex


Financial Firm / Midtown NYC


Associate level, 125K base +bonus


Summary: Seeking hands on team lead Java developer. Client will consider candidates who are not currently formally working as a team lead who can demonstrate they have the necessary interpersonal, communication, leadership and organizational skills to operate in team lead capacity.   


Must be proficient at both client-side web development and server side development. Client-side development will be done in Flex. Client will consider candidates with Javascript instead of Flex but Flex is strongly prefered. Server-side development will be done in JAVA, person must have strong exerpertise in Server-Side Core Java. Financial industry experience preferred but not required. 


Job Description/Requirements:


 This role will primarily lead the design, development, and maintenance of the NPA system focusing on client side components (i.e. document management, admin consoles, reporting, visual dependency graph rendering and navigation) as well as server side development using Java, Spring, and Hibernate. The candidate will work with the QA team to review and prepare test cases and will collaborate with teams within Corporate and Post-Trade Technology, Enterprise Infrastructure, and Application Support Group. The candidate will conduct regular design and code review sessions with the team, assist in troubleshooting, root cause analysis, and problem resolution, and will provide timely reporting to management on status of development, quality, and overall system performance.






Required Skills:



- Java, J2EE technologies
- Adobe Flex
- Spring
- Hibernate
- Web Services
- Experience with SOA implementations
- DB2 and/or Sybase
- Object Oriented Design and Development
- Relational DBMS design and development
- Unix






Additional desired skills:



- MQ Services
- Workflow engines (Savvion, Lombardi, Pega, Zebra, jBPM..etc.) is a plus.
- Experience with Rules Engines (Drools, JRules etc.) is a plus.
- Past experience with Morgan Stanley development environment

The candidate should also have:
- 8 Years+ experience in Software Development
- Strong verbal and written communication skills and the ability to effectively multi-task.
- Strong technical leadership experience
- Have the ability and passion to coach and mentor other developers in the team
- Have the drive and ability to learn quickly new technologies, frameworks and have excellent systems troubleshooting skills.
- Strong in problem solving and troubleshooting technical issues in production applications
- Experience in Financial Services is a plus.
- Bachelors in Computer Science or a related Field, Masters Degree is a plus

Why Hedge Funds Are Going Mainstream

Why Hedge Funds Are Going Mainstream

The rich may not be so different after all.
After decades of investing in exclusive hedge funds, America's super rich are getting company as alternative investments are joining the investment management mainstream, areport from McKinsey & Co. released to clients in July showed.
"The new twist is driven by three major trends," said Kurt MacAlpine, an associate principal at McKinsey, noting that changes in how the products are structured, financial advisers' new tastes for them and changes in how they are accounted for in portfolios are all fueling demand.
Consultants at the firm forecast that retail alternatives, including hedge funds, will likely make up 13 percent of U.S. retail fund assets and about one quarter of revenues, by 2015.
That would be roughly double the figures from 2010, when retail alternatives made up 6 percent of U.S. retail fund assets and about 13 percent in revenues, the consultants found in their report entitled "The Mainstreaming of Alternative Investments 2012."
Until now, hedge funds have been reserved mainly for wealthy private investors who can afford their multimillion-dollar minimums and institutional investors like state pension funds.

UBS: Facebook IPO Cost Us $350 Million

UBS: Facebook IPO Cost Us $350 Million

UBS AG UBSN.VX -5.86% said it took a loss of more than $350 million on the ill-fated Facebook Inc. NDAQ -1.25% initial public offering, wiping out nearly half of its second-quarter profit, and it accused Nasdaq OMX Group Inc. NDAQ -1.25% of a "gross mishandling" of the stock-market listing.

U.S. Housing Recovery Tested As Economy Tempers Optimism

U.S. Housing Recovery Tested As Economy Tempers Optimism

“We’re not afraid to roll the dice, to take a leap of faith on theU.S. economy,” Gray, 47, an insurance-company recruiter, said in a telephone interview. “Things are on the rebound, and we need to get off the sidelines.”
As the residential property market climbs back from the worst collapse since the Great Depression, homebuilders need more customers like the Grays for the industry to enter a sustainable recovery and help drive U.S. economic growth. While orders fornew homes are rising at the fastest rate in two years and housing may be a net contributor to the economy’s expansion for the first time since 2005, slowing job growth, tight inventories and a backlog of foreclosures threaten to put the brakes on a comeback.
“The gun is cocked with insane affordability,” Stan Humphries, chief economist at property-data provider Zillow Inc. (Z), said by telephone from Seattle. “The conundrum is why more people aren’t coming off the fence. Two things are keeping them on the sidelines: economic uncertainty, and the fear of falling home prices. And I think both of those have started to be reduced.”

Sunday, July 29, 2012

Gold In Medal at Olympics only 1.34% gold

Gold  In Medal at Olympics only 1.34% gold

ADM says ethanol MARGINS PLUMMETING

ADM says ethanol MARGINS PLUMMETING

In France, ADM’s CEO told an investor’s conference in Paris that ethanol margins have fallen to nearly 30 cents loss per gallon, down even further from the 13 to 15 cents loss per gallon seen in the reporting period to May 1. Low corn supplies until the upcoming harvest arrives means some facilities are having difficulties sourcing corn.

Friday, July 27, 2012

Feds: We Can Freeze Megaupload Assets Even if Case Dismissed

Feds: We Can Freeze Megaupload Assets Even if Case Dismissed

"The United States government said Friday that even if the indictment of the Megaupload corporation is dismissed, it can continue its indefinite freeze on the corporation’s assets while it awaits the extradition of founder Kim Dotcom and his associates.
Judge Liam O’Grady is weighing a request to dismiss the indictmentagainst Megaupload because (in Megaupload’s view) the federal rules of criminal procedure provide no way to serve notice on corporations with no U.S. address. At a hearing in Alexandria, Virginia, he grilled both attorneys in the case but did not issue a ruling.
O’Grady speculated, with evident sarcasm, that Congress intended to allow foreign corporations like Megaupload to “be able to violate our laws indiscriminately from an island in the South Pacific.”
But Megaupload’s attorney insisted that this may not be too far from the truth. Megaupload, they said, is a Hong Kong corporation with no presence in the United States. He argued it was perfectly reasonable for Megaupload to be subject to the criminal laws of Hong Kong, but not the United States."

CHART OF THE DAY: LinkedIn Is The Only Consumer Tech IPO That's Doing Well

CHART OF THE DAY: LinkedIn Is The Only Consumer Tech IPO That's Doing Well

Black Hat: Hotel keycard lock picking in less time than it takes to blink

Black Hat: Hotel keycard lock picking in less time than it takes to blink

 If you are currently in Las Vegas for the Black Hat or Def Con security conferences, or any hotel for that matter, when you closed and locked your hotel door, heard it click, then you probably believed that you secured your hotel room. Eeenk! It, and four to five million other Onity keycard-protected hotel rooms, can be hacked with open-source hardware costing about $20. What’s more, any hacker, thief, stalker . . . or someone from the government, only needs 200 milliseconds for such untraceable access.

ADM Report Showing Decreases In Ethanol/Corn Profits

ADM Report Showing Decreases In Ethanol/Corn Profits

"Segment operating profit declined 12% on weak ethanol margins and lower Oilseeds profits."

Are there ethanol margins supposed to be better or WORSE?

Corn Processing operating profit decreased $74 million to $130 million.

Thursday, July 26, 2012

China HACKERS Hit EU Point Man And D.C. With BYZANTINE CANDOR

China HACKERS Hit EU Point Man And D.C. With BYZANTINE CANDOR

Ethanol SLIDES On Speculation Producers Will Cut Output

Ethanol SLIDES On Speculation Producers Will Cut Output

Ethanol fell for a sixth day on speculation that higher corn prices, boosted by drought in the U.S. Midwest, and lower gasoline demand will reduce production of the biofuel.
Futures slipped as the rising price of corn, used to make ethanol in the U.S., has erased profit margins for producers. Gasoline demand over the four weeks ended July 20 was 3.1 percent below a year earlier, according to Energy Department data.
“Corn is way over ethanol and there’s no margin for producers,” said Ian Jackson, a trader at SCB & Associates in Chicago. “A lot of production is closed. Weak longs are exiting the market and futures are getting beat up.”
Denatured ethanol for August delivery fell 3.3 cents, or 1.3 percent, to $2.54 a gallon on the Chicago Board of Trade, the lowest settlement since July 12. Prices have dropped 6.1 percent this week, narrowing the 2012 gain to 15 percent.
Corn for December delivery declined 11.75 cents, or 1.5 percent, to settle at $7.7625 a bushel as rain was expected to ease the drought in parts of the grain-rich Midwest. The price has jumped 24 percent in a month. One bushel makes at least 2.75 gallons of ethanol. Producers would lose 37 cents a gallon on ethanol based on December futures prices.
“Lower corn and more, creating prospects for a better crop and an even lower corn price, would bring down the price of ethanol,” said Sander Cohan, a global transportation fuels analyst and principal with Energy Security Analysis Inc. in Wakefield, Massachusetts.

Investors DEMAND hedge funds show CLEAN HANDS on Libor

Investors DEMAND hedge funds show CLEAN HANDS on Libor

Investors are pushing some of the world's biggest hedge funds to show that their traders played no part in the interest rate rigging scandal plaguing major banks.
These hedge funds have responded with in-depth internal probes which they hope will assure investors that they did not collude with the banks, are completely clean and will not become embroiled in the affair, people familiar with the funds said.

Ethanol Makers' Long Hot Summer

Ethanol Makers' Long Hot Summer

Record corn prices and sluggish gasoline demand are squeezing profits for U.S. ethanol companies, prompting some producers to idle plants or slow production.
Valero Energy Corp., VLO +2.33% Abengoa Bioenergy US Holding Inc. ABG.MC +5.36%and Nedak Ethanol LLC have idled plants since mid-June, citing poor market conditions for the corn-based fuel additive. And Archer Daniels Midland Co., ADM +1.76% the biggest U.S. ethanol producer by capacity, said that its ethanol margins had eroded to a loss of well over 20 cents a gallon.


“Rising food prices remain ADM’s biggest threat”

“Rising food prices remain ADM’s biggest threat”

“Rising food prices remain ADM’s biggest threat,” Caplinger wrote. “High corn prices have pressured earnings for some time.” And it’s not just corn that ADM has to worry about. Bloomberg News reports that cocoa prices are expected to rise at least 50 percent in coming years due to industry changes in West Africa.

Caplinger wrote that another challenge facing ADM is competition, particularly in international markets.

Facebook Modestly Beats Wall Street's Low Expectations, STOCK TANKS ANYWAYS

Facebook Modestly Beats Wall Street's Low Expectations, STOCK TANKS ANYWAYS

Facebook didn't give investors much reason to cheer even though the social network beat analysts' revenues expectations in its first report as a publicly traded company. Profits were merely in line with forecasts.

Jim Rogers Hits Out at Hendry, Edwards on China

Jim Rogers HITS OUT at Hendry, Edwards on China

China's economic resilience is under the spot light following a slowdown in growth rates in recent months. The big question facing investors in China and the global economy is can the world's second biggest economy avoid a hard landing.
A rather interesting argument over the future of the Chinese economy has erupted following Jim Roger's, the CEO of Rogers Holdings decision to call out two China bears in an interview with Investment Week.
Rogers dismissed fears over a hard landing and said both Hugh Hendry, who runs the Eclectica Absolute Return Fund and SocGen's Albert Edwards are dead wrong to be so negative on the Chinese economy.
"Hugh has been dead wrong about China for three years now and China has not collapsed as he predicted, loudly, verbally and widely" said Rogers. Hendry used an interview with the Financial Times last week to predict bad things for investors and the global economy but has otherwise been keeping a low profile after betting on difficult times for China.
Rogers dismissed Edwards as being negative on everything, even Catholic saints.
"Albert has been bearish on everything for a long time. So if you are telling me he is bearish on China and bullish on everything else that would be different. But no, he is bearish on everything, including you, me and Mother Teresa" said Rogers in the interview with Investment Week.

Will Facebook Fall to This Price If They MISS Earnings?

Will Facebook Fall to This Price If They MISS Earnings?

Facebook’s (NASDAQ:FB) earnings are a great time to revisit the debate over the company’s true valuation. In one camp we have the emotionally charged Facebook-the-product lovers who know nothing about equity valuations. In the other camp we have people who can add and subtract while depending on fact-based research. As the old saying goes, “Never the twain shall meet.”

Jefferies Vies With Goldman For Highest Wall Street Pay

Jefferies Vies With Goldman For Highest Wall Street Pay

Wednesday, July 25, 2012

Companies Say 3 Million Unfilled Positions IN SKILLS CRISIS: Jobs

Companies Say 3 Million Unfilled Positions IN SKILLS CRISIS: Jobs

Roddale Smith knew he could do better than toting chairs around at Cincinnati Children’s Hospital Medical Center. And when he decided to pursue an education, he didn’t have to go far. His employer brought the classroom to him.
It paid off for both sides. Smith, 32, graduated from nursing school last month and Children’s Hospital, in need of skilled workers, has a new job waiting for him. His salary, now $12 an hour, will almost double.

Former Citigroup chief BACKS BREAKUP of banking giants

Former Citigroup chief BACKS BREAKUP of banking giants

Tuesday, July 24, 2012

As China costs RISE, technology lures U.S. factories home

As China costs RISE, technology lures U.S. factories home

"Frustrated by expensive and slow shipping and wanting more control over the manufacturing process, the 15-year-old company started building factories in Simi Valley, California, and Crystal Lake, Illinois.
"When we do the numbers we're actually ahead manufacturing here instead of paying for air freight and dealing with the logistical issues that we're having in China," said Raymond Sjolseth, the company's president and co-founder.
With just $11 million in revenue last year, Seesmart is a tiny company, but it is one of many manufacturers of all sizes - from Master Lock to blue-chips General Electric Co and Caterpillar Inc - that are expanding production in the United States."

Europe Heat Wave Wilting Corn Adds To U.S. Drought: Commodities

Europe Heat Wave Wilting Corn Adds To U.S. Drought: Commodities

Heat waves in southern Europe are withering the corn crop and reducing yields in a region that accounts for 16 percent of global exports at a time when U.S. drought already drove prices to a record.
Temperatures in a band running from eastern Italy across the Black Sea region into Ukraine reached 35 degrees Celsius (95 degrees Fahrenheit) or more this month, about 5 degrees above normal, U.S. government data show. Corn, now in the pollination phase that creates kernels, risks damage above 32 degrees, said Cedric Weber, the head of market analysis at Bourges, France- based Offre et Demande Agricole, which advises farmers on sales.

Monday, July 23, 2012

Fed's Raskin: No government backstop for banks that do prop trading

Fed's Raskin: No government backstop for banks that do prop trading

 Banks that trade for their own accounts should not benefit from the implicit backing of taxpayers, and Wall Street's opposition to new rules curbing such activities is unfounded, a top Federal Reserve official said on Monday.
Federal Reserve Governor Sarah Raskin, a former Maryland financial regulator, said the notion that derivatives markets enhance firms' ability to raise capital was questionable.
"I view proprietary trading as an activity of low or no real economic value that should not be part of any banking model that has an implicit government backstop," Raskin told students at the Graduate School of Banking at Colorado in remarks made available in Washington.

BIG Nexen option trades before deal RAISE EYEBROWS!

Big Nexen option trades before deal raise eyebrows

Sunday, July 22, 2012

Earnings Show Recession May Be 'FAST APPROACHING'

Earnings Show Recession May Be 'FAST APPROACHING'

Estimates for the third and fourth quarters have been dropped to levels not seen since the days of the 2008 financial crisis, below even the muted 2 percent expected level of inflation.
That's an ominous recession sign for an economy that has barely managed to attain positive growth this year even with the strong level of earnings beats, according to an analysis by Nicholas Colas, chief market strategist at ConvergEx in New York.
"Revenue estimates for the back half of 2012 have been slowly working their way lower this year," Colas said. "This trend, however, has accelerated to the downside over the past 30 days and we are fast approaching levels where these estimates are unambiguously pointing to the risk of a U.S./global recession later into 2012 and 2013."
For the current quarter, about 69 percent of companies in the Standard & Poor's 500 [.SPX  Loading...      ()   ] have beaten analyst profit estimates. Only 42 percent, though, have beaten on top-line revenue estimates, indicating that growth is weakening.
That's evidenced by a rash of downward forward revisions from analysts.
In the broader S&P 1500, analysts have cut outlooks for 792 companies and raised for just 323, with the decreases especially prevalent in technology, which saw half its components down, the highest level since February 2009, according to Bespoke Investment Group.

Saturday, July 21, 2012

Corn-Crop Damage From Drought Poised To Worsen: Chart Of The Day

Corn-Crop Damage From Drought Poised To Worsen: Chart Of The Day

Corn is due for more damage from a drought that has produced the worst U.S. growing conditions in almost a quarter century, according to David Driscoll, a Citigroup Inc. analyst.
The CHART OF THE DAY displays the percentage of the corn crop in good to excellent condition, according to data compiled by the Agriculture Department. Average readings for the previous 25 years and data for 1988, another drought year, are included for comparison.
Only 31 percent of this year’s crop was good or excellent last week, the USDA data showed. The figure was lower than the 38 percent rated as poor or very poor. Photographer: Daniel Acker/Bloomberg
Only 31 percent of this year’s crop was good or excellent last week, the USDA data showed. The figure was lower than the 38 percent rated as poor or very poor.
“Above-average temperatures and below-average rainfall will likely persist,” Driscoll wrote two days ago in a report citingweather forecasts for the Midwest, where most U.S. corn is produced. “This would worsen the corn situation.”
Archer-Daniels-Midland Co. (ADM) is at risk, he wrote, because higher corn prices tied to the drought will make the company’s ethanol production more costly. Driscoll cut his rating on the Decatur, Illinois-based company to neutral from buy on July 1.

No ROOM FOR ERROR in Facebook's debut quarter

No room for error in Facebook's debut quarter

"Facebook Inc faces immense pressure to beat Wall Street's financial targets when its delivers its inaugural quarterly earnings report next week, hoping to wash away the bad taste left with investors from a soured IPO.
The No. 1 social networking company's second-quarter report on July 26 will be scrutinized by investors looking for clues on the health of its business, which is experiencing a sharp slowdown in revenue growth and mounting questions about its advertising sales.
With a rich multiple that gave Facebook the distinction of being the first U.S. company to go public with a valuation of more than $100 billion, the company headed by 28-year-old Mark Zuckerberg has little room for error.
"If they miss, it would be catastrophic for the stock," said Michael Binger, a portfolio manager with Gradient Investments."

A Global Recession? The Warning Signs Are EVERYWHERE

A Global Recession? The Warning Signs Are Everywhere

"Is it possible that we are already in a global recession but just don’t know it yet?
And is the U.S. itself—still the epicenter of the world economy—standing on the front edge of another recession?
I sincerely hope I’m wrong. But warning signs are everywhere.
The eurozone economy is flat on its back. Greece may be headed for a political crackup and an exit from the euro and European Union. Deposit runs in Greece and elsewhere are beginning, and a credit freeze throughout the continent is not out of the question. Meanwhile, emerging economies like China, India, and Brazil are slumping.
Here at home, ex-Clinton strategists James Carville and Stan Greenberg sent a memo to President Obama telling him that his campaign message of slowand steady recovery progress is out of touch with Main Street America. They’re right. Of course, Obama’s “private sector is doing just fine” statement is part and parcel of his disconnect from economic reality.
And the reality isn’t good. Whether you’re a Democrat or Republican, take a look at the numbers:
Job growth has been slipping badly for three months. Retail sales and factory orders are down two straight months. Real incomes are flat. Household wealth is way underwater from the housing collapse, dropping nearly 40 percent in the last three measured years. And GDP was an anemic 1.9 percent in the first quarter. Nearly all leading Wall Street economists are marking down their second-quarter estimates to 2 percent or less.
But here’s the key point: 2 percent growth is not a recovery. Many economists would call it a growth recession. When you get that low there’s little margin for error. A shock from Europe, an inventory selloff in the U.S., or almost any unexpected event could push us back into negative territory for an official double-dip recession.
The last saving grace for the U.S.? Business sales and profits are still trending higher, although GDP-measured profits did fall in the first quarter. That needs to be watched carefully."

Alcatel Has Shorting Ban: Put Buyers Go Around It!

Alcatel Has Shorting Ban: Put Buyers Go Around It!

Friday, July 20, 2012

Unusual price action in four stocks may be due to automated hedge

Unusual price action in four stocks may be due to automated hedge

 A mysterious trading pattern noticed on Thursday in the shares of four blue-chip stocks was likely an experiment in the automated hedging of large options positions, an analyst at JPMorgan said.
Many investors on Thursday were puzzled by the price action of Coca Cola (KO), International Business Machines (IBM), McDonald's Corp (MCD) and Apple Inc (AAPL), said JPMorgan Securities derivatives strategist Marko Kolanovic.
The prices of the four stocks oscillated in an almost perfect pattern, going up and down at almost exactly the half-hour and full-hour marks, he said. The unusual price patterns started from 10 a.m. Eastern time.
"We believe that the price pattern of Coca Cola, IBM, McDonald's and Apple yesterday was caused by hedging of options by a computer algorithm," Kolanovic said in a report. "In other words, it was likely an experiment in automatically hedging large option positions with a time-weighted algorithm that has gone wrong for the hedger."
The unusual trading occurred a day before Friday's expiration of July options, and the four stocks held some of the largest expiring positions out of all S&P 500 stocks.

How Michael Bloomberg Went From Bond Trader To Billionaire Media Mogul With One Incredible Machine

How Michael Bloomberg Went From Bond Trader To Billionaire Media Mogul With One Incredible Machine

Michael Bloomberg started his New York City story sweating in his underwear in Salomon Brothers' vaults.
And in a little over 20 years he turned a $10 million severance package from that now defunct bank into a multi-billion dollar company Wall Street can't live without.
The inspiring journey, with plenty of highs and lows, is one of a man who enjoys both success and philanthropy. 
His current gig is only paying him $1 per year, but it's not like he needs the money.  According to Forbes, he's now the 11th richest man in the world.

Morgan Stanley, Qatari Fund May Do Commodities Deal

Morgan Stanley, Qatari Fund May Do Commodities Deal

Morgan Stanley officials are in advanced talks with a Middle Eastern sovereign-wealth fund, the Qatar Investment Authority, about an investment in the bank's commodities unit, say several people familiar with the matter, and a deal could be imminent.
Such a sake could give the Qatari fund a toehold in the robust global business of trading paper and physical stocks of commodities like crude oil, natural gas, and metals, while at the same time providing an influx of capital for Morgan Stanley.
Talks between the two entities have in recent days centered on the notion of the QIA purchasing a minority stake in Morgan's commodities business, according to one of the people familiar with the matter. One current concern, according to another person familiar with the matter: making sure that the most talented traders in the division are contractually obligated to stay on board.
Owning part of Morgan's commodities trading unit could cost the Qatari fund a billion dollars or more. Even though the second quarter generated relatively low revenue amid spiraling crude-oil prices (New York Mercantile Exchange: CLCV1), among other factors, the bank's commodities division has historically made between $2 billion and $3 billion per year, people with knowledge of the business have said. The unit also includes significant physical assets, including TransMontaigne Inc., a Denver-based commodities logistics company, which could sweeten the price even during this turbulent trading period.
Still, the exact terms of the potential deal could not immediately be determined. And the people familiar with the matter cautioned that the discussions could yet fall apart. A spokesman for Morgan Stanley (MS) declined to comment on the possibility of a sale, and representatives for the Qatari sovereign-wealth fund did not respond to requests for comment.
During an interview with CNBC on Wednesday to discuss her firm's second-quarter earnings, Morgan Stanley chief financial officer Ruth Porat said that while "we look at commodities as an ongoing" business, "never say never" when it comes to handicapping an eventual sale or outside investment in the unit.

Thursday, July 19, 2012

STEC CEO Moshayedi Charged With Insider Trading

STEC CEO Moshayedi Charged With Insider Trading

The Securities & Exchange Commission this afternoon announced that it has charged solid-state drive maker Stec (STEC) CEO Manouchehr Moshayedi with violating insider trading rules in conjunction with a secondary offering of the company’s stock back in August of 2009.
The SEC said Moshayedi “sought to take advantage of a dramatically upward trend in the stock price of STEC Inc. by deciding to sell a significant portion of his stock holdings as well as shares owned by his brother, a company co-founder” based on knowledge of impending results that would affect the offering.
However, in the days leading up to the secondary offering, Moshayedi learned critical nonpublic information that was likely to have a detrimental impact on the stock price. Moshayedi did not call off the offering and abstain from selling his shares once he possessed the negative information unbeknownst to the investing public. Instead, he engaged in a fraudulent scheme to hide the truth through a secret side deal, and proceeded with the sale of 9 million shares from which he and his brother reaped gross proceeds of approximately $134 million each.