Exclusive: Wall Street firm dangled up to 175% returns to investors using U.S. aid programs

[mahatmakanejeeves]

Source: Reuters

BUSINESS NEWS APRIL 9, 2020 / 6:05 AM / UPDATED 4 HOURS AGO

Exclusive: Wall Street firm dangled up to 175% returns to investors using U.S. aid programs

Lawrence Delevingne
5 MIN READ

BOSTON (Reuters) - A New York investment firm pitched wealthy investors in recent days on a way to make returns of 22% to 175% using U.S. government programs designed to help Americans keep their jobs and boost the coronavirus-stricken economy, according to a marketing document seen by Reuters.

Following questions posed by Reuters, Arcadia Investment Partners LLC, which has about $1 billion under management, said it had put its plans on hold.

The idea was in “formative stages” and the firm was not “presently moving forward with this strategy given reasons that include uncertainty surrounding the regulations,” Dahlia Loeb, managing director at Arcadia, told Reuters in an email on Wednesday. She did not elaborate further.

The firm had sent the pitch as recently as this weekend to “a limited number of sophisticated investors,” according to the marketing materials, which are dated April 4 and marked confidential. In an email sent Sunday, and seen by Reuters, Loeb wrote it was a “highly time sensitive opportunity” and had offered to discuss it with investors that day or early in the week.

Arcadia’s pitch offers a glimpse into how some private investors are looking to quickly take advantage of the unprecedented government intervention after the novel coronavirus brought economic activity to a screeching halt.

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Read more: https://www.reuters.com/article/us-health-coronavirus-arcadia-returns-ex/exclusive-wall-street-firm-dangled-up-to-175-returns-to-investors-using-u-s-aid-programs-idUSKCN21R1DV

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Hat tip, Joe.My.God:

https://www.joemygod.com/2020/04/wall-street-firm-pitched-175-return-on-relief-program/

[Mc Mike]

1. How cute.

[TreasonousBastard]

2. Every government program has this one fatal flaw...

there more people, and more highly paid people, who have the time to go over every tiny little point to see where they could make a buck from it.

[turbinetree]

3. I think its time to bring in Rep Katie Porter and have discussion with said Wall Street firm....

and they should be closed down...............we are not going to go through the happy horse shit from 2008 again of the haves fucking over the have not's...........................

[Baitball Blogger]

4. In other news, Trump fired the watchdog that will oversee the distribution of

of billions and billions of dollars meant for relief and recovery.

[mahatmakanejeeves]

6. Meet the new watchdog. I mean, who knows more about hens than a fox? NT

[melm00se]

5. I know of them

they are well known for pushing the envelope with creative (sometimes not in a good way) strategies and offers.

They play in the distressed market quite a bit and, from their POV, are pretty successful at it.

[Kitchari]

7. Pigs

n/t

[DanieRains]

8. Our Tax Dollars / Borrowed Dollars Going To The 1%

Nothing new here.....

[bucolic_frolic]

9. There is little if any actual trading going on anymore

Volume is very light. 401K's and retail investors are in index funds. The FED gives play money to banks who lend to hedge funds. They trade big blocks between levels based on technical charts. The averages just jump between the numbers all day long. Once overnight orders clear at 9:50AM, the daily trend is set. One-direction days are about 85% of the action now.

Computer algorithms with no managers make better returns than managed funds. Indexes for the most part do too. Active management delivers sub-par performance. Even Main Street brokers with research departments are just buy and hold operations.

Again, we have no actual markets. These are skeleton markets.

Worse we have fascism breaking out. Government is paying workers. Is the FED actually buying corporate bonds? Saw that this AM and someone posted it was illegal but happening anyway. Government, FED, and private companies are merging their interests to support the Fake Markets. This is the definition of fascism.

[orwell]

11. And the Fed...

...announced this morning they are going to lend another 2.3 trillion to states, municipalities, and "small and medium sized" businesses.

So we now have around 8 trillion dollars in either direct Fed intervention or Congressional bailout. And there is talk of more.

So much for the invisible hand...

Remember how Medicare for all priced at 10 Trillion over 10 years was "socialism."

I guess it's not "socialism" when your are authorizing 8 Trillion in less than a month...

[gristy]

12. Yes, I'd heard this before, that volumes are way down

Is there a good place to view volumes? And to see some articles on what you are talking about here? Thanks in advance, BF!

[bucolic_frolic]

13. Articles are just so passe

Last edited Sat Apr 11, 2020, 06:35 AM - Edit history (2)

There are Youtube gurus ... there is a long lecture by Anton Kriel, about 2 hours, he only gave one long one so it's easy to find, and I recommend the daily update videos from TheoTrade and TheChartGuys. They are traders, not on a crusade, but they do mention levels every day, that's how they deal with them.

TheoTrade pointed to an incident the other day where the S&P dropped 40 handles in a minute. Jumps like that can only happen where there are no orders. Stocks the same. Market orders hit the next bid. They can drop 5, 10 points hitting just a few hundred shares here and there on the way down.

Wanna be alarmed?

[DENVERPOPS]

14. These clowns

are one millimeter away from their cabal coup goal......a FASCIST TYRANNY

[yaesu]

10. the crumbs that might make it to some of us is nothing compared to what the banksters are getting

just another wall street bailout so tRump gets reelected.

[Tweedy]

15. Thank goodness for the person who leaked this

Since our unindicted co-conspirator of a president and his whited sepulcher of an Attorney General are determined to hide who has their hands in our taxpayer cookie jar, it is with welcome surprise that I read this story and recognize that one of the "selected investors" leaked this rather than join in on this president's heist of our country's wealth.

Hope there are many more out there like this person.

[KayF]

16. i love "Design flaw"

oops it lets rich people steal all the money. What an embarrassing totally unintentional mistake.

[McCamy Taylor]

17. WTF?