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Indicted Traders Once Played Key Role at Muddy Waters swissinfo.ch - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from swissinfo.ch Daily Mail and Mail on Sunday newspapers.
Indicted Traders Once Played A Key Role at Muddy Waters swissinfo.ch - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from swissinfo.ch Daily Mail and Mail on Sunday newspapers.
A year before Carson Block launched Muddy Waters Capital, his hedge fund firm, he started trying to line up a prime broker an investment bank that could lend him stocks so he could then sell them short. But the task was proving arduous. The problem, he believes: Block had made his name calling out China frauds, and Wall Street loved China. After several bulge-bracket banks turned him down, Block decided to try his luck with Jefferies Financial Group, a scrappy up-and-comer known for its trading skill. Muddy Waters, then only a research firm, was based in San Francisco, so he arranged an interview with Jefferies CEO Rich Handler on his next visit to New York City. ....
‘We’re at this point where stock markets are just ludicrous,’ says Carson Block MarketWatch 2/2/2021 MARKET EXTRA Carson Block thinks that investing sentiment is reaching ludicrous levels and that could eventually fracture a market that he views as fragile. The founder of San Francisco-based Muddy Waters, who made his name shorting Chinese stocks, told MarketWatch in a Monday-afternoon interview that the dust-up between a select group of individual investors using Reddit chat forums and a clutch of professional investors highlights the problems swirling in a market that has been buttressed by easy-money policies from the Federal Reserve and government aid to help stem the economic harm from the COVID-19 pandemic. ....
James Langton Securities regulators have long targeted “pump-and-dump” schemes that aim to drive up stock prices with baseless hype. Now, regulators are going after so-called “short-and-distort” campaigns, in which short-sellers badmouth companies in an effort to drive down stock prices. Certain Bay Street factions have long complained about the role of short-sellers in the Canadian market. More recently, there have been concerns about the threat of activist short-sellers traders who don’t just quietly bet against companies they see as overvalued, but broadcast their views to the rest of the market. Critics complain that activist short-sellers can make baseless allegations against a company in order to drive down its stock price and lock in an easy profit. Defenders of the practice argue these gadflies can help expose corporate misconduct and serve as an important check on the overwhelmingly positive bias in mainstream analyst coverage. ....