WSJ: FINANCIAL FLASHBACK Joe Jett Kidder Peabody Scandal 1994

FINANCIAL FLASHBACK

A look back at Wall Street Journal headlines from this month in history

By Simon Constable

• 30 YEARS AGO: Kidder Discloses Scam in Bonds, Fires Top Trader

In April 1994, investment bank Kidder Peabody accused its chief government-bond trader, Joseph Jett, of scamming the company. The affair added to the company’s already tarnished reputation, which had resulted from Wall Street’s insider-trading scandals less than a decade before. 

Jett had allegedly created false profits of $350 million to help boost his bonus to more than $9 million. He was accused of doing so by trading in so-called Treasury strips, or zero-coupon fixed-income securities, temporarily producing phantom profits.

The storm around Jett, who was dismissed by Kidder, came after the insider-trading troubles in 1986. Then, arbitrager Ivan Boesky was accused of insider dealing or trading on nonpublic information, by joining with a Kidder investment banker. Read more here.

#FRANCE: Springtime with higher fuel costs for farmers and truckers. @RealConstable @BatchelorShow Occitanie.

 By SIMON CONSTABLE

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CC: Economic Malaise In Scotland Plus JK Rowling Speaks Out On New Hate Law @RealConstable

 By SIMON CONSTABLE

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Entrepreneur and company director Alan Quinn joins us today for an update on Scotland’s economic, social, and legal malaise. Notably, we touch on the new hate crime laws in Scotland, which can mean a prison stay of up to seven years in prison. Author JK Rowling has already asked the police to arrest her after she described several transgender women as men.

We also discuss the increasingly dire government-caused housing crisis in Scotland, and the contrast in efforts by Glasgow and Aberdeen’s local councils in fostering business growth.

BBC story on the Scottish hate laws and JK Rowling’s response is here or c51j64lk2l8o.

Guardian story on the likely temporary relief from rent control, and how it will almost-certainly lead to massive increases in rent costs is here or https://www.theguardian.com/uk-news/2024/feb/11/tenants-scotland-face-big-rent-rises-mass-evictions-from-april-emergency-protections-expire.

The intro is a shortened version of a clip by Richard Wagner, EEF OAL-1, licensed via Wikimedia Commons, performed by:

Conductor: James Allen Gähres

Ensemble: Ulm Philharmonic

Location: CCU Einsteinsaal, Ulm

Opera: The Valkyrie (Die Walküre)

Movement: Prelude from Act 3

Date 3 June 2014

The thunderclap outro is a shortened version of a clip by Jonathan Hunt, CC BY-SA 4.0, via Wikimedia Commons.

UK CEOs: Fleeing to America?

 By SIMON CONSTABLE

US firms are using big pay packages to tempt British CEOs. ‘It’s not a good trend.’ Read more here.

Forbes.com: Economic Slump Ahead If Houthi Red Sea Attacks Don’t Stop, Report Says

 By SIMON CONSTABLE

There’s bad news ahead for the global economy if Western powers cannot stop the Iran-backed Houthi rebels from threatening commercial shipping in the Red Sea, a recent report states.

Under a pessimistic but theoretical scenario world GDP drops by 0.4% this year, according to a paper from the Washington DC-based Institute for International Finance.

It warns of the need for the West to defeat or contain Houthi rebels who are attacking shipments heading towards the Suez Canal. Read more here.

Forbes.com: Nvidia, Bitcoin Or Cocoa — Which Is The Better Investment?

 By SIMON CONSTABLE

Pop quiz for savvy investors.

If you could go back six months and make a single trade what would you invest in?

Chip company Nvidia (NVDA) specializes in advanced artificial intelligence. It’s Wall Street’s latest craze, and the AI world is sure to grow and change the global economy.

Or BitcoinBTC, the crypto currency that’s still a teenager but continues to get increasing attention from Wall Street? There are now a number of exchange-traded funds that investors can utilize to make gains including Grayscale Bitcoin Trust (GBTC), iShares Bitcoin Trust Registered (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC.) There are others also.

Or would you head to the futures exchange and purchase gobs of cocoa contracts? Cocoa is the key ingredient in chocolate. Read more here.

#France: Diesel Fuel holding steady in farm country Occitanie. Tories in Chaos @RealConstable @WSJ @BatchelorShow Occitanie

By SIMON CONSTABLE

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Benjamin Disraeli. Credit: W. & D. Downey, Public domain, via Wikimedia Commons