Recently I was talking to a friend who works for a big Wall Street bank. His job involves buying huge volumes of shares at a discount from his clients and slowly trying to drip them back into the market at a profit.
Technically, it's illegal for him to collude with the analyst who works upstairs. I have a hard time believing they don't collude though. If the bank needs to unload 1B worth of stock x, and the analyst upstairs has done his DD on stock x and realized it's a sell, I can see the analyst "taking his time" on releasing his recommendation.
As long as the collusion isn't recorded via phone or email they really can't be prosecuted. Why obey the rules when obeying them loses you money?
Submitted December 28, 2017 at 07:19AM by InvestingLifeSavings http://ift.tt/2BOE2ru
