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Buy, Sell or Hold?
What should I do? My investments are down and I don't know what to do? Should I be buying now, selling or waiting the market out? What are the successful investors doing? Here's a few ideas that could fatten your portfolio and give you a greater...
How Can You Make Your Restaurant a Successful Venture?
Create a Successful Restaurant by Considering these Issues
The restaurant business is a tough business. So if you are contemplating owning a restaurant then beware. New restaurants open their doors every day, but most of them go out of...
Investing Stock Market ABC’s
While most folks today trust mutual funds and their professional managers with their investments, it’s still important to understand the basics of the stock market. Although investing in individual stocks may not be right for everyone, a basic...
InvestorIdeas.com presents "The Insiders Corner," from Michael Brush: “Six Months to Make a Mayor Proud,” A Six Month Market Performance Review of his Insider Reports and Analysis.
For Immediate Release:
June 16, 2005
InvestorIdeas.com presents "The Insiders Corner," from Michael Brush: “Six Months to Make a Mayor Proud,” A Six Month Market Performance Review of his Insider Reports and Analysis.
"Perhaps just as...
Online Trading: 7 Success Secrets
Getting ready to do some online trading? Get the facts on options and arbitrage trading before deciding on your trading technique. Join a live teleseminar at www.surefireonlinetradingsuccess.com. Here are some things to consider in preparing to...
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Peter Scannell - Market Timing Whistle Blower
In March 2000, Peter Scannell had only a fundamental knowledge of how a mutual fund company worked. Despite this, he got a job at Putnam Investments' call center in Quincy , Massachusetts .
Peter Scannell was only working there a short time when he became aware of efforts by outside investors to make rapid trades in and out of Putnam.
Calls would flood the call center in the late afternoons between 3 and 4 pm. The trades were made by eager investors ready to make huge transfers, reflecting a practice known as market timing.
When U.S. stocks surged, the boilermakers bought into funds composed of foreign companies, which had finished trading before prices for those funds were set at 4 p.m. They were betting that the international markets would follow Wall Street's trajectory the next day, scoring them a quick profit.
Market timing is not illegal. However, it can erode the gains of long-term investors.
Scannell says he told supervisors he thought the transfers might be against the National Association of Securities Dealers' rules. His supervisors laughed at him saying it was not his concern and that it wasn't illegal.
With this Scannell told his bosses he would no longer accept
Associated Websites
transfers from known market timers. His bosses were furious.
Two days later, Scannell was hit in the head with a brick by a man wearing a "Boilermakers Local 5' sweatshirt. The Boilermakers Local 5 union were one of the groups known to Scannell as engaging in the market timing scandal.
Undeterred, Scannell went to the Boston office of the Securities and Exchange Commission. Five months went by. The agency didn't act on his tip, even though he had documents that backed up his claims which he had taken the day after he quit.
Finally, the Massachusetts regulators stepped in. They determined that in the last three years at least 28 of the unions members made between 150 and 500 trades, scoring gains of up to $1 million each. The investigators also zeroed in on two e-mails from the firm's internal monitors: It appeared they had been aware of the troublesome activity since the spring of 2000.
This led to state civil fraud charges against Putnam, the resignation of its CEO, Lawrence Lasser, and the withdrawal of more than $20 billion from its funds.
About the Author
Founder of corporatenarc.com. corporatenarc.com is dedicated to exposing corporate and business scandals, scams, fraud and deception.
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