Goldman Sachs leaving HFT, NYSE, shutting down dark pool

dinosaur death

Where Goldman Sachs goes, others follow. Goldman has decided High Frequency Trading is no longer tenable, backs IEX (a fair exchange), is leaving the dinosaur NYSE, and shutting down its own dark pool. These changes will shake the trading world to its core. The parasite called HFT will be dead soon enough, with HFT companies being wallpapered in lawsuits and indictments.

Why is Goldman doing this? Michael Lewis says in Flash Boys that Goldman genuinely thinks that HFT is out of control and the next flash crash could be 10x worse and damage everyone including them. They want out – and if the demise of HFT decimates some of their competition – so much the better.

Goldman exiting virtually all venues except the upstart IEX is certainly a major change.

Another thing that is certain: take a long, hard look at the market as you know it today, because in less than a year it will be history.

Pacific Northwest: Sending coal to China?

Long coal train, South Dakota, 1946. Carol M Highsmith, American (Carol M. Highsmith's America, Library of Congress, Prints and Photographs Division.)

SSA Marine, which is 51% owned by Goldman Sachs, has applied for federal and state permits  to build facilities at Cherry Point to ship coal from the Rocky Mountains to China, thereby making the Pacific Northwest the largest coal exporting region in the country. (As many as half a dozen future sites have been proposed along the Oregon and Washington coast. If all of them were built and operated to planned capacity, those ports would ship 50% more coal than the entire country did in 2011.)

Most of the coal would come from the Powder River Basin in Wyoming and Montana; the coal would arrive on the coast either by train or river barges. What could possibly go wrong?

Physicians fret about an explosion of locomotive exhaust, while mayors grumble about the potential for long traffic-snarling trains. Washington state fears 1,200 new barge trips on the Columbia River could spark more accidents and marine-vessel groundings. Tribes worry that spilled coal could poison aquatic food webs.

But as the federal government begins its first lengthy review of plans to ship coal through Northwest ports, it’s not clear how — or if — the feds will weigh in on perhaps the most far-reaching issue: the potential effect new markets for coal could have on greenhouse-gas emissions.

There’s more information about the Gateway Pacific Terminal at Cherry Point near Ferndale, Washington, here and here. SSA has provided some more details to its proposal which the Bellingham Herald explains here.

Further proof that investment banks are parasites

In Why I am leaving Goldman Sachs, Greg Smith tells how the company apparently is solely focused on how it can best screw its clients.

One of my cousins finds investors for small, private companies. He recently bemoaned that companies like Goldman are poisoning the well for everyone else, making start-up capital harder to raise, with a general assumption that all bankers are thieves.

My cousin isn’t a thief. But the big investment banks are basically amoral thugs.

Industrial capitalism is good. Finance “capitalism” is dangerous. It isn’t even capitalism at all.

The former deserves the Adam Smith approach. And the latter? I’m not sure, and I’m open to suggestions. But we need to see some radical shit go down.

Finance capitalism is what Karl Marx rightfully called fictitious capital. It’s money making money benefiting no one by a tiny few with nothing of value being created.

The Vampire Squid attempts to strangle Europe

Click through to The Independent for full-sized graphic

It is not just Mr Monti [the new premier of Italy]. The European Central Bank, another crucial player in the sovereign debt drama, is under ex-Goldman management, and the investment bank’s alumni hold sway in the corridors of power in almost every European nation, as they have done in the US throughout the financial crisis.

Goldman Sachs and JP Morgan have sold more than $5 trillion of protection on debt, a substantial amount of which is assumed to be in Europe. If those countries default on their debt or their bonds and loans are renegotiated at say 50 cents on the dollar, then JPM and Goldman will cease to exist. So, rather than pay for their stupidity and greed themselves, they want residents of the countries to do it for them, even if it impoverishes them for years to come.

PS  ‘International banks have aided Mexican drug gangs‘ by laundering their money.

Ex-Goldman director to face criminal charges: source

His corruption was so egregious I guess even the feds figured they had to get off their dead asses and do something.

Our money is not on the administration on this one. In fact, when the smoke settles, we expect a few extra tentacles from [Goldman headquarters at] 200 West to penetrate even deeper into the three farcical branches of government of this once non-banana republic.

With this, Rajat Gupta joins Raj Rajaratnam as the biggest fishes so far indicted, with Rajaratnam already having been been sentenced to eleven years in prison. No big-name Anglos or Jews have been indicted yet, just India-born financiers with funny names. Quite curious, that.

Did I mention Rajaratnam is Tamil and supported the insurgency in Sri Lanka?