11 replies to this topic

[Rogerdodger]

Goldman Sachs Accused of Manipulating Crude Market Forcing Tulsa's SemGroup into bankruptcy...
Forbes - ‎Mar 25, 2009‎ What's known for sure is that Goldman Sachs, through J. Aron & Co., its commodities trading arm, was in prime position to use such data--and profited...

KJRH LINK
Shocking allegations tonight that one of the nations top financial institutions brought Tulsa based Semgroup Holdings to bankruptcy.
Goldman Sachs had access to Semgroups future trade prices. A Forbes.com article suggests the market could have manipulated. the claim is that someone at Goldman Sachs or its commodities trading arm, J. Aron and Company, knew Semgroups futures market and that it cost Semgroup millions.

Oil and Gas attorney Chris Heroux has no connection to the case. He says if that happened, "[They could have]... thereby manipulated the price so that we would have a short-squeeze and the failure of Semgroup." He says "If the allegations are true... the results to businesses like Semgroup would be catastrophic."

John Tucker is the attorney for the former CEO of Semgroup Tom Kivisto. Tucker agrees someone used inside information about Semgroup to manipulate the market. Heroux adds, "It would mean the regulators failed to do their job to ensure the markets are not manipulated."

Edited by Rogerdodger, 26 March 2009 - 10:13 PM.

[Rogerdodger]

SemGroup will close asphalt unit
3/20/2009
Bankrupt SemGroup LP told employees in a memo Thursday that it's "winding down" SemMaterials and will lay off most of the unit's 550 workers.

[Rogerdodger]

Seeking Alpha:
August 20, 2008
This fits in with my impression that Goldman is very much on the wrong side of the trade, long on commodities and short on financials, and the action post-July 15th simply caught them with their pants down, so they are doing their best to engineer a reversal. GS and their hyena pals have been attacking the financials all week, forecasting a global economic meltdown and a protracted US recession. Now that they have taken down the financials low enough to weasel out of their positions, they are going to tell you how strong global demand will support high oil prices.
I noted yesterday that there are only 65,000 contracts left to dump on the NYMEX. Even though the market is not driven by speculators according to former GS CEO Hank Paulson, strangely all but 65M of the 320M barrels that were "demanded" at the NYMEX for September delivery have already been canceled, depriving US inventories of 63M barrels PER WEEK that were in the hands of traders just last week. Today is an inventory day but the NYMEX traders dumped all but 20M barrels that were scheduled for August delivery last month - 5M barrels a week less than what they normal short-change us for. Despite this, inventory draws have been subdued, indicating massive demand destruction continues - we’ll see how they try to spin it today…
Meanwhile, those 65,000 remaining oil contracts were churned traded 178,631 times in yesterday’s trading as the NYMEX pump crew is forced to play hot potato with the last remaining September crude contracts as it is very obvious nobody really wants them.

Edited by Rogerdodger, 26 March 2009 - 10:23 PM.

[zigzag]

Isn't that Goverment Sachs now? And I'm not surprised they are involved in another $hituation.

[Rogerdodger]

Isn't that Goverment Sachs now?

Wasn't it the day Hank went to "work" for the government? WINK. WINK. WINK.

[Rogerdodger]

Updated at 9:58 PM
Catsimatidis believes hedge funds helped drive SemGroup into bankruptcy
By ROD WALTON World Staff Writer
Reader comments (2)

He called it a “$500 billion fraud on the world” in both a Forbes article and to the Tulsa World. Attorney John Tucker, representing company co-founder Tom Kivisto, has denied any wrongdoing by his client.

[dasein]

Remeber the big down day that Paulson used to strongarm Congress after they said no to his plan in Sept - it was reportedn at that time that the IBs like GS had more than doubled the amount of margin they required to be put up by hedge funds on that wednesday, creating the vicious sellof as funds liquidated to meet margin - did that manipulation get addressed? the whole prime brker thing is based on trust and chinese walls - but anyone in the computer room get get you a printout of everything, anyone with a password can mine the database - and they do. Geithner, like Paulson, has a red telephone with a direct link to GS.... GS and JPM probably have one to the white house, too, since the 80s. Too bad Sem Group isnt too big to fail - as i said, the corrpt ones are in collusion to allow the chosen ones pick up assets on the cheap - BSC, LEH, Semgroup - there will be more unless these criminals are taken out.

[zman]

where is the outrage over this? this is absolutely mind blowing to say the least..those ahole at goldman sucks should be in jail..they are so corrupt and yet it's business as usual...do we really think that anything will be done? Hell NO! it's a dirty game and you will not find many clean hands in it...too bad for the tax payer...were screwed either way

[jjc]

where is the outrage over this? this is absolutely mind blowing to say the least..those ahole at goldman sucks should be in jail..they are so corrupt and yet it's business as usual...do we really think that anything will be done? Hell NO! it's a dirty game and you will not find many clean hands in it...too bad for the tax payer...were screwed either way

These brokers and the larger banks are instruments of policy for the US gubmint. They are protected by the ressury (and the army in instances). W's admistration pushed that relationship to the extremes and used the patriot act to gather information on even the smallest of active traders. Obama's administration has yet to prove itself, however Gietners (sp) tenor leaves me with little hope.

[Rogerdodger]

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Edited by Rogerdodger, 27 March 2009 - 09:10 AM.