|Bankster Eat Bankster?|
Goldman clients have filed suit against Goldman over the alleged unathorized transfer of ownership of the couple's Marvell shares to Goldman's internal fund in order to better fleece the couple by shorting their own shares: resulting in a loss of $100 million.
This is beginning to become suspicious. Sure, this is the Vampire Squid and these types of dealings are SOP, but the odds of three scandals of this nature all publicly surfacing within a month would normally be slim-to-none. We reported last week that JP Morgan faced a massive $200 million margin call 3 days before the MF Global collapse, and only the quick substitute of MFG as the sacrificial scapegoat prevented JPM from having to meet the million margin call over its bad European derivatives bets.
We know what happened to Bear Sterns, Lehman Brothers, and MF Global when The Morgue has been in trouble previously.
Is it possible that The Morgue has now set its sights on one of its largest rivals, the Vampire Squid itself, or is Goldman merely drowning in its own debauchery?
Pay close attention because this could be a record-breaking amount of mauling ever attempted by the colossus of client care as Goldman shows it does not discriminate between millionaire and billionaire Muppets.
In a bizarre story in CNN Money, we are told that two billionaire 'married' executives of Marvell Technologies - MRVL (no, not the comic book though that would be spectacular) are suing Goldman for what initially appears to be a straight-forward alleged fraud of unauthorized transfer of ownership of their MRVL shares to Goldman's internal fund to enable more borrow availability for shorts (1 Corzine-ing).
But the story gets better. The executives, upon the advice of another Goldman broker were advised to take levered long positions in competitor NVDA's shares (which GS was allegedly selling out of its own book - 2 Corzine-ings) only to very rapidly face significant losses when the company missed and the stock dropped notably (3 Corzine-ings).
Then, GS sends the MRVL execs margin calls on that position (4 Corzine-ings) and unwilling to accept the MRVL shares as collateral due to its low share price (5 Corzine-ings), forces the former MRVL executives to sell their MRVL shares (6 Corzine-ings) to meet cash calls - all the while remembering that GS had transferred the ownership in order that they could allegedly have more of this hard-to-borrow stock to short (7 Corzine-ings).
What's more, the couple's suit alleges that Goldman and a hedge fund run by Goldman were buying MRVL's shares at the same time the firm was forcing Sutardja and Dai to sell (8 Corzine-ings). Both NVDA and MRVL's shares have since more than doubled from their late 2008 lows. The couple claim they lost more than $100 million because of their forced sales and general Muppet massacre.