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SEC Lashes Out At Wolves Of Wall Street- Suspends 225 Companies

Courtesy of Joao Peixe of OilPrice.com

The US Securities and Exchange Commission (SEC) has suspended 255 shell companies from trading until 14 February to prevent “pump and dump” fraud, and stocks will not be relisted if companies fail to prove they are operational.

The suspension took hold at the start of trading on 3 February and will end at 11:50 p.m. on Feb. 14. Suspended stocks can’t be relisted unless the company can prove it is still operational, a requirement that the SEC said was “extremely rare.”

The SEC suspension covers shell companies in 26 US states and two unnamed foreign countries, with the US regulator describing the targets as “ripe for abuse”.

These “pump and dump schemes” being targeted by the SEC generally occur when violators talk up a thinly traded microcap stock through false and misleading statements about the company to the market. The violators buy up the company’s shares cheaply and the pump up the stock price by creating the appearance of market activity and then dump the stock for a massive profit.

This activity was made famous through the 2014 Hollywood movie, The Wolf of Wall Street, which is based on the true story of former US stockbroker Jordan Ross Belfort, who served 22 months in prison for causing investors to lose $200 million through a pump and dump scheme.

The SEC moved to suspend 61 other shell companies in June last year, along with 379 shell companies in 2012. This is part of the SEC’s ongoing initiative dubbed “Operation Shell-Expel,” which was launched in 2012.

The suspension will end at 11:50 p.m. on 14 February, and according to the SEC, the “trading suspension essentially renders the shells worthless and useless to scam artists.”

Because these shells all too often are used by those looking to manipulate stock prices, we will continue to protect unwary investors by suspending trading in shells,” Andrew J. Ceresney, director of the SEC’s enforcement division, said in a statement.

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via Zero Hedge http://ift.tt/1ju9LSJ ilene

Submitted by Simon Black of Sovereign Man blog,

631 people renounced their US citizenship in the 4th quarter of 2013.

This is an entire order of magnitude higher than the 45 people who renounced in 4Q/2012. And in total, 3,000 Americans renounced their citizenship in 2013– another record high.

The previous record (1,777) was set in 2011, which shattered the previous record before that (1,534) which was set in 2010, which was more than twice the number (742) that renounced in 2009.

You can see the trend here. And it’s not hard to figure out why it’s happening.

As the United States Taxpayer Advocate Nina Olsen recently told Congress in her scathing report about US tax policy:

“[T]ax requirements have become so confusing and the compliance burden so great that taxpayers are giving up their U.S. citizenship in record numbers.”

In her report, Ms. Olsen specifically points to the Foreign Account Tax Compliance Act (FATCA), which was passed by Congress four years ago. She states that FATCA “has the potential to be burdensome, overly broad, and detrimental to taxpayer rights.”

That’s putting it politely.

I have written several times before that FATCA is one of the most destructive, insidious pieces of legislation ever passed. And the worst effects are only now -starting- to be felt.

Among other things, the law requires new disclosures for US citizens with foreign accounts. And just to make sure it’s absolutely clear how the US government views its tax serfs, they put this little ditty in the instructions:

“The fact that a foreign jurisdiction would impose a civil or criminal penalty on you if you disclose the required information is not reasonable cause [to NOT file this form].”

Basically they’re saying, ‘Even if disclosing this information would cause you to go to jail in a foreign country due to their confidentiality laws, we don’t give a damn. We still expect you to file this form. Otherwise we will throw you in jail in the US.’

(yes, there are potential criminal penalties for not filing this form…)

This isn’t exactly how a free society treats its citizens. It’s a constant threat of force with these people. Even the most mundane, bureaucratic tasks are cause for intimidation.

As I have pointed out so many times before, you can’t even apply for a passport (i.e. permission to leave the country) in the Land of the Free without being threatened with fines and imprisonment.

All of this has come at tremendous cost. Aside from permanent damaging the US government’s reputation and its role in the global banking system, the human cost is nearly incalculable.

Think about it– it’s not the Obamaphone recipients who are renouncing their citizenship and leaving the country. These are smart, talented, energetic people who could have actually contributed something.

And as this productive class gets out of dodge, they leave behind more people who want something for nothing… and fewer people to pay the bill.

It’s the same situation the Romans were in back in the 5th century.

Undoubtedly there are folks out there who would call the thousands of people who have renounced ‘cowards’ and ‘traitors’ (though they are in respected company given that the British considered George Washington a traitor).

But lest we judge ‘renunciants’ poorly, we should first ask– is it more honorable to lay down and let yourself be plundered by a bunch of blundering, bungling, deceitful politicians…?

Doubtful. Besides, divorcing yourself from your bankrupt, insolvent government is not the same as divorcing yourself from your culture or values.

You are who you are no matter what color your passport is.

via Zero Hedge http://ift.tt/1bTc3Gn Tyler Durden

Submitted by Simon Black of Sovereign Man blog,

631 people renounced their US citizenship in the 4th quarter of 2013.

This is an entire order of magnitude higher than the 45 people who renounced in 4Q/2012. And in total, 3,000 Americans renounced their citizenship in 2013– another record high.

The previous record (1,777) was set in 2011, which shattered the previous record before that (1,534) which was set in 2010, which was more than twice the number (742) that renounced in 2009.

You can see the trend here. And it’s not hard to figure out why it’s happening.

As the United States Taxpayer Advocate Nina Olsen recently told Congress in her scathing report about US tax policy:

“[T]ax requirements have become so confusing and the compliance burden so great that taxpayers are giving up their U.S. citizenship in record numbers.”

In her report, Ms. Olsen specifically points to the Foreign Account Tax Compliance Act (FATCA), which was passed by Congress four years ago. She states that FATCA “has the potential to be burdensome, overly broad, and detrimental to taxpayer rights.”

That’s putting it politely.

I have written several times before that FATCA is one of the most destructive, insidious pieces of legislation ever passed. And the worst effects are only now -starting- to be felt.

Among other things, the law requires new disclosures for US citizens with foreign accounts. And just to make sure it’s absolutely clear how the US government views its tax serfs, they put this little ditty in the instructions:

“The fact that a foreign jurisdiction would impose a civil or criminal penalty on you if you disclose the required information is not reasonable cause [to NOT file this form].”

Basically they’re saying, ‘Even if disclosing this information would cause you to go to jail in a foreign country due to their confidentiality laws, we don’t give a damn. We still expect you to file this form. Otherwise we will throw you in jail in the US.’

(yes, there are potential criminal penalties for not filing this form…)

This isn’t exactly how a free society treats its citizens. It’s a constant threat of force with these people. Even the most mundane, bureaucratic tasks are cause for intimidation.

As I have pointed out so many times before, you can’t even apply for a passport (i.e. permission to leave the country) in the Land of the Free without being threatened with fines and imprisonment.

All of this has come at tremendous cost. Aside from permanent damaging the US government’s reputation and its role in the global banking system, the human cost is nearly incalculable.

Think about it– it’s not the Obamaphone recipients who are renouncing their citizenship and leaving the country. These are smart, talented, energetic people who could have actually contributed something.

And as this productive class gets out of dodge, they leave behind more people who want something for nothing… and fewer people to pay the bill.

It’s the same situation the Romans were in back in the 5th century.

Undoubtedly there are folks out there who would call the thousands of people who have renounced ‘cowards’ and ‘traitors’ (though they are in respected company given that the British considered George Washington a traitor).

But lest we judge ‘renunciants’ poorly, we should first ask– is it more honorable to lay down and let yourself be plundered by a bunch of blundering, bungling, deceitful politicians…?

Doubtful. Besides, divorcing yourself from your bankrupt, insolvent government is not the same as divorcing yourself from your culture or values.

You are who you are no matter what color your passport is.

via Zero Hedge http://ift.tt/1bTc3Gn Tyler Durden

For only the 5th time in the last 25 years, the S&P closed up over 1% on Humphrey-Hawkins testimony day. Today's screamfest seems all about a growing "common knowledge" that the economy is weaker than everyone hoped and Yellen will untaper as soon as possible (despite her saying the absolute opposite of that). Stocks surged (S&P's best 4-day run in over 2 years); Credit spreads collapsed. Gold soared to 3-month highs (+5% from Taper). The USD roller-coastered notably on JPY & EUR weakness. While bonds sold off (not un-tapery) the move was very modest (and bond yields have dislocated notably from stocks). Of course, USDJPY was in charge keeping the S&P over 1,800; and Nasdaq in the green year-to-date – Mission Accomplished (but Dow lost 16k into the close). A massive squeeze of shorts in the last few days has doubled the market's impressive performance. VIX tested down to almost 14%. Why not BTFATH, Yellen said there was no bubble so we are good to go?

 

Fun-durr-mentals – USDJPY provided the crucial momentum ignition three times and finally stocks caught on and searched for technical levels to find stops… notably EM FX did not play after Europe closed

 

The S&P saw almost its best 4-day swing from low-to-high since December 2011!!

 

And the Nasdaq is now up 0.5% in 2014…

 

But Healthcare and Utilities are the biggest winners snce the taper… (as discretionary managed to pull back up to unchanged)…

 

Stocks and bonds recoupled intraday as taper vs un-taper correlations broke down notably – the last 2 days have seen 5s30s flatten 5bps – thebiggest drop in 3 weeks

 

But Stocks decoupled from bonds (and macro data) as bad news is great news for stocks once again…

 

Of course, the "smash your fucking face in" rally in the "most shorted" stocks of the last few days provided the ammunition…

 

Gold has been on a tear – up 7 of the last 8 days and back up to 3-month highs…

 

and gold remains the winner since the taper (+4.9%)

 

The USD had a rollercoaster day – a big surge on the Yellen testimony release at 830, then recovery as she started speaking at 10, and it just went higher as Janet kept talking (so now we get USD strength on an un-taper?? – looks like JPY and EUR weakness were in charge)

 

Given today's performance (and the last few days) perhaps Axel Merk's cartoon sums it all up (despite the actual words on staying the course from the dovish Yellen)…

 

Charts: Bloomberg

Bonus Chart: Who was the consistent 15,000 contract e-mini S&P 500 futures (that's $1.35 billion notional) buyer that kept propping up the market every time we faded? (h/t AY!)

 

via Zero Hedge http://ift.tt/1eo1LdV Tyler Durden

For only the 5th time in the last 25 years, the S&P closed up over 1% on Humphrey-Hawkins testimony day. Today's screamfest seems all about a growing "common knowledge" that the economy is weaker than everyone hoped and Yellen will untaper as soon as possible (despite her saying the absolute opposite of that). Stocks surged (S&P's best 4-day run in over 2 years); Credit spreads collapsed. Gold soared to 3-month highs (+5% from Taper). The USD roller-coastered notably on JPY & EUR weakness. While bonds sold off (not un-tapery) the move was very modest (and bond yields have dislocated notably from stocks). Of course, USDJPY was in charge keeping the S&P over 1,800; and Nasdaq in the green year-to-date – Mission Accomplished (but Dow lost 16k into the close). A massive squeeze of shorts in the last few days has doubled the market's impressive performance. VIX tested down to almost 14%. Why not BTFATH, Yellen said there was no bubble so we are good to go?

 

Fun-durr-mentals – USDJPY provided the crucial momentum ignition three times and finally stocks caught on and searched for technical levels to find stops… notably EM FX did not play after Europe closed

 

The S&P saw almost its best 4-day swing from low-to-high since December 2011!!

 

And the Nasdaq is now up 0.5% in 2014…

 

But Healthcare and Utilities are the biggest winners snce the taper… (as discretionary managed to pull back up to unchanged)…

 

Stocks and bonds recoupled intraday as taper vs un-taper correlations broke down notably – the last 2 days have seen 5s30s flatten 5bps – thebiggest drop in 3 weeks

 

But Stocks decoupled from bonds (and macro data) as bad news is great news for stocks once again…

 

Of course, the "smash your fucking face in" rally in the "most shorted" stocks of the last few days provided the ammunition…

 

Gold has been on a tear – up 7 of the last 8 days and back up to 3-month highs…

 

and gold remains the winner since the taper (+4.9%)

 

The USD had a rollercoaster day – a big surge on the Yellen testimony release at 830, then recovery as she started speaking at 10, and it just went higher as Janet kept talking (so now we get USD strength on an un-taper?? – looks like JPY and EUR weakness were in charge)

 

Given today's performance (and the last few days) perhaps Axel Merk's cartoon sums it all up (despite the actual words on staying the course from the dovish Yellen)…

 

Charts: Bloomberg

Bonus Chart: Who was the consistent 15,000 contract e-mini S&P 500 futures (that's $1.35 billion notional) buyer that kept propping up the market every time we faded? (h/t AY!)

 

via Zero Hedge http://ift.tt/1eo1LdV Tyler Durden