Big Banks Allocate Losing Trades to Clients, Keep Winning Trades for Themselves

[girl gone mad]

Big Banks Allocate Losing Trades to Clients, Keep Winning Trades for Themselves
http://www.zerohedge.com/article/max-keiser-big-banks-allocate-losing-trades-clients-keep-winning-trades-themselves

Submitted by George Washington

Max Keiser - journalist, former Wall Street broker and options trader, and inventor of the software which is now being used for high frequency trading - claims that the big banks retroactively allocate losing trades to their clients, and keep the winning trades for their own proprietary trading desks:

http://www.youtube.com/watch?v=2-PihbVN6O4

This is the second time in the couple of weeks that Keiser has made this allegation. When he first brought this up, Keiser said that he has first-hand knowledge of this unlawful activity because - when he was a trader - he and everyone else did the same thing.

[Scuba]

1. Where's the Grand Jury????

This would be fraud, at best.

[dixiegrrrrl]

2. Just when you think it can't get worse.....

[girl gone mad]

3. Explains how they can have a solid quarter with not a single losing day, though.

I'm always surprised when smart, successful people are so clueless about the way these banks view their clients. This isn't retail, where the customer is always right. Outside of the very wealthy and connected, the client is prey at these firms.

[Ikonoklast]

4. 'Client' is spelled

S U C K E R.


Heads, I win; Tails, you lose.