Thursday, December 23, 2010

Ivy League Education is Priceless

Many out there have questioned and challenged my extremely harsh and derogatory treatment of the Ivy League set in our financial structure. Rather than address the issue I raise of  these Ivy league business schools being modern day assembly lines cranking out financial sociopaths and terrorists to be loosed on the populace, many prefer instead to counter with the 'you're just jealous' and never overused 'just not smart enough' to get in. 

With great sadness I finally have to admit that I am. Jealous and not smart enough! 

Now that we have cleared that up take a moment and read the very short article below off Reuters and I'll tell you why.

Ex-Fund Manager Settles Insider Trading Claims.
by Reuters

A former hedge fund manager and a pharmaceutical executive have agreed to settle federal insider trading charges related to the 2007 takeover of the biotechnology company MedImmune, the Securities and Exchange Commission said Wednesday. 

Stephen R. Goldfield, 46, who ran the hedge fund firm Imperium Capital Management in Tampa, Fla., was charged with making $13.98 million in illegal profits by trading in MedImmune securities before AstraZeneca agreed to acquire the company for more than $15 billion. 

The S.E.C. also accused James W. Self Jr., 45, Mr. Goldfield’s friend and former classmate at the Wharton business school, of tipping him off about the MedImmune sale process with information he learned as an executive director of business development of a New Jersey pharmaceutical company. 
Merck's Web site lists a James W. Self as an employee in business development at its vaccine division. Merck did not return a call for comment. 

Federal regulators have brought several insider trading cases in recent months after facing criticism for having missed fraud in previous years. 

According to the S.E.C., Mr. Goldfield’s settlement called for him to pay $16.65 million, reflecting the profit he made plus interest. But he will pay only $600,000 because he lost all the illegal profit by aggressively trading index put options. Mr. Goldfield did not admit wrongdoing.
“Mr. Goldfield is happy with the settlement and is looking forward to putting the matter behind him,” 

Robert Heim, his lawyer, said.
Mr. Self accepted a $50,000 civil fine, also without admitting wrongdoing, the S.E.C. said.
John Grugan, who represents Mr. Self, declined to elaborate on the settlement.

Definitely not smart enough for sure. This gig Goldfield pulled off is sheer brilliance that's why. Not with me?  Okay, hang on as I need a few minutes and some fingers free to do math as I didn't go to Wharton. 

Okay, check out this brilliance.... 

13.98 million in ILLEGAL profit, minus 600,000 in SEC fines equals...... hang on now.... remember I couldn't get into Wharton,... that leaves $13.38 million left over in loot!


And to think I have the nerve to insult and degrade the Ivy league crowd. Actually I take it all back!

I am the the moron here. I should bow down before these cats I mean are you kidding me!  Paying $600k -as any ivy league MBA would know is a 4.29% cost of doing business commission to the SEC - to clinch a $14 million deal ! Can you say NO BRAINER?!

Seriously, are you kidding me? Now how smart is that? Heck, buying a home you're forking over 6% to the realtor. This is killer. Sure makes you remember that an Ivy league education is priceless.

Oh yeah, all while neither admitting nor denying wrongdoing. 
Yeah Baby !! Hear that Judge Napolitano. 

Maybe after all this inconvenience Mr. Goldfield can now get to share and spread his insight and acumen with others via the Milken Institute or better yet CNBC! The boobs and boobs in chairs there can bring invite him on to glorify and agrandize him, even set out jumbo shrimp appetizers for a VIP like that. Maybe Carl Qunitanilla can ask him what its like to be a deca-millionaire.

In all fairness Goldfield's SEC settlement:

"called for him to pay 16.65 million reflecting the profit he made plus interest but he will pay only $600,000 because he lost all the illegal profits trading index put options." 

Sure he did! Would you expect anything less here? 
My question for the SEC is what if he had doubled that stake?  Are you sure Goldfield lost it trading index options and didn't blow it at Aqueduct? You sure its not in a burlap bag somewhere. Yeah, I know that just crazy to think that given how thorough the SEC is in its investigations.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

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