Earlier quoted context omitted.
Actually it is the state that has to prove mischief. They still enjoy presumption of innocence. I agree the timing is suspicious, but the amounts are pretty small. Even if the stock drops 20% long term due to this (which IMO is highly unlikely), a high ranking executive risking a jail term to avoid losing 50k of stock is (again IMO), absolutely irrational.
>high ranking executive risking a jail term to avoid losing 50k of stock is (again IMO), absolutely irrational. You act as if this is a real senario and would have a non-negligible probability of occurring.
Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
151–160 of 177 posts
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#152Earlier quoted context omitted.
More like the law was written in cooperation with the people that became wealthy through means that used to be legal and protected themselves and their legacy by kicking away the ladders they used.
> the law was written in cooperation with the people that became wealthy through means that used to be legal and protected themselves... Hey, if nothing else, you are super-confident. Also, way to not generalize or be presumptuous in any capacity. Fucking super buttoned up analysis. It all checks out.
From a trade policy perspective alone we have plenty of supporting evidence among developed countries of self-serving policymaking. Ha-Joon Chang, economist at Cambridge, has written several books criticizing neoclassical economics policies commonly used by both left and right wing policy makers across many developed economies including one literally called "Kicking Away the Ladder" describing how an alarming trend for developing countries to make trade and domestic economic policies that close off tools these countries used themselves to grow their economies. A recent case of not following conventional policies and playing into the hands of the ultra wealthy is Iceland following their real estate collapse and now subsequent rebuilding on their terms as suggested by economist Michael Hudson, another critic of neoclassical economic policies.
Regulatory capture is one of several by-products of cronyism and an oligarchical rather than impartial, equal opportunity system but even in a toy case study in sports there is clear evidence of bias with regulatory experience http://onlinelibrary.wiley.com/doi/10.1111/coep.12240/abstra... If there's policymaking and enforcement bias over time in something with as little consequence as sports but also certainly fiscal motivators (for teams, NHL Commission, etc) it would be strange if our government policies would be exempt from the same human dynamics that is specifically meant by those with hidden information to stay obscure and hidden. But not a whole lot of grant funding out there to investigate corruption exactly, so rigorous academic research on corruption, regulatory capture, and other perversions of capitalist society is sparse, oftentimes difficult to get solid data, and thus difficult to cite in a random Internet comment to the satisfaction of pedantic critics that react to defend any assailment of the much-maligned wealthy.
I'll omit the studies showing those with wealthier backgrounds showing tendencies toward far more loose ideas of lawfulness and fairness compared to the general population.
Also, I wrote it partly tongue-in-cheek in tone responding to a potentially more inflammatory, generalized, presumptuous comment and somehow that was ignored?
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#153Earlier quoted context omitted.
Yes. At least they were smart enough not to buy options. :-) https://www.bloomberg.com/view/articles/2014-06-17/there-mig...
Somebody opened a huge options position on EFX a couple weeks ago. No way to tell who, of course, but it certainly looks suspicious. I posted the chart here: https://twitter.com/dimfeld/status/905952247682547716
thanks.
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#154Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#155So, does this count as insider trading? My intuition says 'yes'. But my intuition about a thing and what the law says don't always match.
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#156Earlier quoted context omitted.
Recognized that the law doesn't apply to rich people?
More like the law was written in cooperation with the people that became wealthy through means that used to be legal and protected themselves and their legacy by kicking away the ladders they used.
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#157Earlier quoted context omitted.
You sometimes see this as IAALBINYL (instead of the more common IANAL), standing for "I Am A Lawyer But I Am Not YOUR Lawyer" Or, "free legal advice is worth what you paid for it."
It's worth noting, though, that many forms of actual "free" legal advice still come with serious professional obligations on the part of the lawyer. Pro-bono work, public defenders, contingency basis, etc are free to some extent, but nonetheless create a client relationship that is at least nominally as serious as one that is paid for. There is a reason that lawyers online are very quick to point out that they are no…
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#158Earlier quoted context omitted.
Somebody opened a huge options position on EFX a couple weeks ago. No way to tell who, of course, but it certainly looks suspicious. I posted the chart here: https://twitter.com/dimfeld/status/905952247682547716
So, I struggle understanding options jargon, maybe you can help -- from your tweet: is 2500 alot? 2500 of what - stock that borrowed? $135 is lower than yesterday's price, but higher than today's open @ 125 - does that mean someone who bought the puts can cash out at $10 profit this morning? thanks.
If whoever owns those options exercises them today (And covers their short position at a price of $125) they will make ~$2.5m on a ~$200k bet.
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#159Earlier quoted context omitted.
For the benefit of those reading: given that this may very well be the worst breach ever by far, and is likely to attract significant attention from government regulators and prosecutors, this is likely a particularly unwise time to begin attempting this strategy.
The direct financial impact to Equifax is likely to be tiny, and their customers aren't the people who's personal information they just left on the side of the road. Once the news cycle is past, it will be business as usual at Equifax.
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#160Earlier quoted context omitted.
This is not financial advise: I remember a few commentors on HN recently saying they have made large gains by buying stock of companies after the news of cyber security breaches significantly reduced the share value, then waiting for the dust to settle(reaction-news-cycle to complete) and the price to rise again.
The sad thing is these breaches are so common place nowadays most of us regular folk just assume all our personal information is compromised to some degree. I'll be curious to see if this breach has any real material business impact.