4 ms·
Hard to imagine what their end goal for this could have been
by logicslave 6y ago
Hard to imagine what their end goal for this could have been
- deleted 6y ago[deleted]
- gwd 6y agoMoney laundering / plausibly deniable embezzlement? 1. Inform people to whom you want to transfer money that you're about to push the market up. They buy a wide range of tech stocks (or other derivatives that rely on tech stocks) 2. Make some insane trades that push up tech stocks for a few days 3. Your targets sell, taking a hefty profit You've effectively transferred money out of your hedge fund to these other people; if the "area of effect" is large enough, it should be difficult to tell who was the target. Don't know if this is efficient or plausible.
- srtjstjsj 6y agoIf it's that easy, just do it for yourself to profit.
- dllthomas 6y agoI doubt gwd has access to a tremendous pile of other people's money to experiment with, other considerations aside.
- raincom 6y agoLaundering is needed when money is dirty. In this case, money is not dirty. Embezzlement is a stupid move on the part of any billionaires. They can collect management fees instead, and be safe.
- raesene9 6y agoI'll take a wild assed guess at it, what follows is pure speculation. Many of Softbank's portfolio companies are not doing well (e.g. Uber, WeWork), and they're starting to get a bit anxious about whether they'll be able to show the returns that investors are looking for. So they've turned to risky strategies which, in the short term, could show a high return on investment to keep their investors happy. Of course, when/if this unwinds, they could be in serious trouble, but that falls into "problems for another day" I'd usually say that no serious investment company could be this shortsighted, but after seeing what Wirecard did, I'm no longer so sure :)