Small Skims Add Up to Big Losses

[dArKeR]

It’s hard to get people to pay attention to pennies these days. Many stores have trays from which you can take the odd penny or two, or leave pennies you don’t want to bother taking. Other places seem to have given up on pennies completely and round down the tab to the lowest nickel.

BUT IF YOU LOOK at two of Wall Street’s many ongoing scandals—the ones involving mutual funds and New York Stock Exchange specialists—you see that pennies matter. Provided, of course, that you can pick up enough of them from people who won’t miss them. No one notices a penny. But take a few million—or billion—of them and you’re talking real money...

But the extra costs, deplorable as they are, are only part of the story. If you examine the supporting documents that Spitzer filed, you see that there’s far more going on here than timing the market, which hedge funds could have done in ways that didn’t involve messing with mutual funds. The documents indicate that the hedge funds involved in this game are trying to target mutual funds whose net asset values are determined inefficiently. So it’s not just about timing the market, it’s about extracting pennies from the funds’ other shareholders...

http://msnbc.com/news/983119.asp?0cv=CB20

The Liberal Press is a disgrace to America! Bush is a disgrace to God.

The Frenchman takes responsibility but the American Christian Bush lets the American Business Whores steal from us! Where is the SEC?
http://democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=177549

[UpInArms]

1. kick

:kick:

[pfitz59]

2. See the movie "Office Space"....

Bunch of nerds try to skim the pennies off their company's transactions. Programmer misplaces a decimal point and problems ensue! Great flick.

[neverforget]

3. What's the matter with you people? I have people skills!

Classic movie if you work in cube like I do. :-)

[Wapsie B]

4. White-collar crime

just does not play well with the American public. We'd rather watch COPS showing someone rob a 7-11 than get a look at the real criminals in our society, the white-collar bandits of korporate amerika.