Opes Prime: Collapse Down Under
Mish's Global Economic Trend Analysis: "The Australian is reporting Opes 'share manipulation' probe.
The collapse of stockbroking firm Opes Prime has widened into a full-scale investigation of false accounting and manipulation of six key accounts worth $200 million to help clients to avoid margin calls.
It is alleged that Opes staff moved shares between the accounts of clients with margin loans in a 'round robin' fashion.
By moving shares, or by changing loan-to-valuation ratios, accounts could be made to look healthier, avoiding margin calls that could have forced the clients to dump shares or inject extra cash."
The collapse of stockbroking firm Opes Prime has widened into a full-scale investigation of false accounting and manipulation of six key accounts worth $200 million to help clients to avoid margin calls.
It is alleged that Opes staff moved shares between the accounts of clients with margin loans in a 'round robin' fashion.
By moving shares, or by changing loan-to-valuation ratios, accounts could be made to look healthier, avoiding margin calls that could have forced the clients to dump shares or inject extra cash."
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