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IB analyst caught insider trading

https://markets.businessinsider.com/news/stocks/rbc-analyst-bill-tsai-insider-trading-charge-year-after-graduation-2019-8-1028439190

what happens to guys like this? Blacklist for life I assume? Just 1 year out of school! Such a dumb move! Sad

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

He will probably go to prison for a short while, and he will never work in finance again. Perhaps NYU will rescind his degree as well. The overall stupidity of this guy for doing this is just unfathomable to me.

“Visit the Water Cooler forum on Analyst Forum. It is the best forum.”
- Everyone

https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-announces-insider-trading-charges-against-analyst-investment-bank

“TSAI is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison.”

yeah, this guy messed up his life big league. guy was in such a good spot too, I would have killed to have the opportunity he had after I graduated college.

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

Dude gets big-time inside information and decides to buy $23k worth of calls…what was he thinking?!? 

Ethics aside, the probable payout the transaction was peanuts compared to what a guy like him would be earing during his career. I would understand if he would have bought $2.3M worth of calls through some shade off-shore account. But risk it all for peanuts? What an IDIOT!

It ain't what you don't know that gets you in trouble. It's what you know for sure that just ain't so.

At least he didn’t talk with his girlfriend about his insider trades using company email like that one M&A dude a few years back. 

If you're the first out the door, that's not called panicking

This summarizes my impression of NYU students so well.

#FreeCVM #FreeTurd #2007-2017

he’s young. prolly didnt think he was doing anything bad. #boyswillbeboys!

I love my cheese. I got to have my cheddar.

^ 8 years old is young. He was just stupid.

Stupid, arrogant, didn’t think rules applied to him. Basically, common graduate mindset. Also, since he was President of NYU students, I’d think he’s also the king of douches. 

“Visit the Water Cooler forum on Analyst Forum. It is the best forum.”
- Everyone

Thought he was too smart for everyone else. I just feel bad for him. Both him and mr. anus would get destroyed in jail.

Maybe he was sexually frustrated and wanted to pull some big money to buy a sex slave. 

Tactics wrote:

Thought he was too smart for everyone else. I just feel bad for him. Both him and mr. anus would get destroyed in jail.

i don’t think insider traders get sent to don’t-drop-the-soap prisons. 

If you're the first out the door, that's not called panicking

I don’t understand this case at all. The guy went to Stern. He got an IB position. Is he really so dumb not to cover his tracks a little more? Maybe collaborate with a 3rd party. 

And for $23K - what the ****

"A theory that you can't explain to a bartender is probably no damn good."
- Ernest Rutherford

My guess would be a few years in prison assuming he pleads guilty and behaves well in prison.

Reminds me of an episode from The Office -  The Convict where they found out one guy went to prison for insider trader and he said prison was great. Then Micheal became ‘Prison Mike’.

well technically $23k of otm calls, can easily be a lot more. lets say stock price at 100. and call otm option was 1$ at strike price of 110. and  buyout of co  was avg 40% premium, or 140. so you made 29 bucks per call option. well that’s 29*23000=667k.

we once asked how much would you trade your cfa charter before. so perhaps this man was just trading his undergrad degree for that amt!

also i just read the article, he netted 100k in profit. supposedly. 

I love my cheese. I got to have my cheddar.