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SEC Opens Investigation Against Goldman Sachs

“The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter. The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (EVERY) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO. “The product was new and complex but the deception and conflicts are old and simple,” said Robert Khuzami, Director of the Division of Enforcement. “Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party.”

Stephen Cohen / Steven Cohen

Stephen Cohen grew up in Great Neck, New York State, in the family of a clothing manufacturer and a piano teacher. The family was big and noisy. Cohen thinks, that it was here that he learned to concentrate on the main. And in cards, and at school Cohen did well. “In the mornings, he often had bundles of hundred-dollar bills on his desk.”, – recalls Donald, 47-summer accountant from Florida. “I've learned to take risks through poker”, – says Cohen. At the University of Pennsylvania he studied economics, played poker and became interested in the stock market. He opened an account with a brokerage firm Gruntal and put there $7000, intended for tuition fees. At the brokerage office closest to the hostel, he followed the market and, thanks to several transactions, earned enough, to pay all bills. IN 1978 G. Cohen took a job at Gruntal, where on the first day I earned for the company 8 000 $. Ultimately Cohen did approximately 100 000 $ a day for the company, to 1984 he managed a portfolio in $75 million and a group of six traders. There were transactions on his account, who helped Gruntal cover losses, incurred due to transactions of other traders. IN 1992 G., left Gruntal, Cohen opened a hedge fund, investing there $20 million own funds (today the firm manages more than 12 billion $). IN …

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Richard Dennis / Richard Dennis

Richard Dennis, also known by the nickname "Prince of the Pit", born in Chicago, in January 1949. Early 1970s, he borrowed several thousand dollars and ten years later turned them into 200 million dollars. When a futures fund, run by Denis, suffered significant losses during the fall of the stock exchange 1987 of the year, he retired from trade for several years. Dennis started as a messenger on the trading floor of the Chicago CME Exchange in 17 years. Several years later, he began trading mini-contracts for his own account on the Mid-America Commodities Exchange.. After a series of successful deals, Denis bought a seat on the much more expensive Chicago Board of Trade. To get around the age limit, Richard worked as his own messenger and gave requests for execution to his father, who stood on his site in the "pit".

Paul Tudor Jones / Paul Tudor Jones

Paul Tudor Jones II was born 28 September 1954 years in Memphis, Tennessee, USA. Paul Jones graduated from the University of Memphis, and later at the University of Virginia, he received a degree in economics. IN 1976 year quite successfully participated in the boxing championship in welterweight. He started his business career at 1976 year from the position of a clerk and soon grew to a broker at E.F. Hutton». With 1980 for two and a half years Paul was an independent trader. Then he went to Harvard Business School, but soon realized, something, what is taught in this school is not the same knowledge, which he wants to get. Therefore, he abandoned the idea of ​​further education and asked for support and advice from his relative, William Danawant., specialized in cotton trade. William Danavant sent him to New Orleans, what would Jones talk to and big broker Eli Tallis, who offered him a pretty good job. Jones begins trading cotton futures on the New York Cotton Exchange.

Nassim Nicholas Taleb / Nassim Nicholas Taleb

Born Nassim Nicholas Taleb in 1960 year, in the Lebanese city of Amioun. His family professed Orthodoxy. During the civil war, which began in 1975 year, they were deported. Father of Nassim Nicholas, Dr. Taleb was an oncologist, did anthropological research. Among his ancestors are politicians, representing the interests of the Orthodox community of Lebanon. So his maternal grandfather and great-grandfather were deputy prime ministers of Lebanon, paternal grandfather served as Chief Justice, and also in 1861 his great-great-great-great-grandfather served as governor of the semi-autonomous Ottoman province on Mount Lebanon. Taleb has held senior positions in brokerage firms in London and New York, and also worked on the stock exchange, before starting his own hedge fund company Empirica LLC (futures and options sales). He received his Master of Business Administration degree (MBA) At Wharton School and defended his Ph.D. thesis at the University of Paris. Author of "Dynamic Hedging" and "Fooled by Randomness".

Mario Gabelli / Mario Gabelli

Mario Joseph Gabelli (Mario Joseph Gabelli) was born 19 June 1942 of the year. He spent his childhood and youth in the Bronx, where he attended primary school first, and then the private Jesuit school for boys at Fordham University. In his spare time Mario, hitchhiking, traveled to the northern suburbs of New York, to Westchester County, where he worked as a caddy (a carrier of golf clubs and other equipment) in leading golf clubs, such as Winged Foot and Sunningdale. There he met many people, have achieved success in life, and these people often talked about investing in stocks. Later Gabelli told, that already in those days I read market reports for my own pleasure, and bought my first shares, when he was all 13 years. Upon graduation, Gabelli received a scholarship and went to college at Fordham University. There he stood out not only with his hair, which at that time was still red, but also desperate enterprise. He always had another get-rich-quick scheme ready., like selling electric flashlights from the trunk of your own car during the period, when the streets and shop windows were poorly lit.

Michael Steinhard / Michael Steinhardt

Michael Steinhard was born 7 December 1940 years in Brooklyn, New York, USA. Steinhard recognized as one of the best investors and hedge fund managers. Founder of Steinhardt hedge fund, Fine, Berkowitz & Co. One of the best traders and investors grew up in Brooklyn, his father was a jeweler. Michael first became interested in stocks, when he was presented with several pieces for one of the holidays, he soon began to go to the local Merrill Lynch branch to check his investments and use the income to buy more shares. After graduation, Age 16 years, Steinhardt went to Wharton School at Pennsylvania State University, where he completed the basic university program in three years.

Джон Темплтон / John Templeton

Sir John Marks Templeton (John Marks Templeton) was born 29 november 1912 of the year in the small town of Winchester, Tennessee, in a poor family. While studying at Yale University, which fell on the period of the Great Depression, he was forced to support himself and was used to austerity. IN 1934 year he graduated from the university as the best student in his group, earning the opportunity to continue my studies at Belliol College, Oxford, who graduated, having received a degree in jurisprudence. IN 1937 year Templeton began his career on Wall Street. His hour has struck 1939 year, when World War II began in Europe. Borrowing from your boss $10000, Templeton buys small-cap stocks, traded at the price $1 or below. This risky operation proved to be extremely successful and allowed him to make a profit., four times the loan.

John Bogle / John Bogle

John Clifton "Jack" Bogle (John Clifton “Jack” Bogle). To date, hundreds of billions of dollars have been invested by investors in index funds., generating a stable income and characterized by low costs. For a great opportunity to profit from invested capital, without making great efforts and without trying to "outplay" the market, investors have one man to thank - John Bogle. close, colleagues, and often journalists call him Jack.

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