Matthew Goldstein at BusinessWeek has got his teeth into the Stanford International Bank story now and he's not letting go. As well as giving deserved props to the instigator of the investigation in this note, Goldstein has just published this excellent report that shows even more shady details emerging. It's a must read, especially about the "whistleblower lawsuit" that was settled by Stanford just before going to trial in late 2007. However the part that caught my eye was early on in the story. Here it is:
"For months now, securities regulators have interviewed dozens of former employees of Stanford Financial, trying to get to the bottom of the firm's staple investment product..."
Why do I like this little line? Well, basically because it's bullshit. The SEC had done a bit of looking around but hadn't moved on Stanford in any way. Then suddenly the Madoff affair hits and people are shouting "where was the SEC?" and now they're suddenly in danger of being upstaged by a single (albeit very smart) individual who had the guts to go public on this story which then combined with the collective power of the blogosphere (like it or not, suckaz..we're here to stay and showing the way).
So in that little quote we see the first chapter of "The SEC Get Out Clause". We're going to be told how the SEC had been carefully collecting its data over the last few months and how they were building a case and how it was only a matter of time before yada yada blah blah. Well, if their bruised egos need it that's ok by me because it's now pointing to something far more important to the greater good, namely that the SEC are going after Stanford right here and right now. And frankly I don't care how this ends and what spin is used by the guys in suits as long as justice is done.
A last word: The MSM and "serious" business publications are all over this story. Reuters has a crack guy on the scene in Antigua. Bloomberg, DJNW, WSJ, NYT, FT, all the UK dailies (to cover the cricket angle) and there are plenty of names missing from that roster for sure. The major biz media are moving and shaking. This is all good and the more we hear from the established outlets the better. Also note the scramble between bullshit analysts, bankers and financial advisors in New York, Miami, Antigua, Houston Caracas and all points between is now on to get a place in the sun and a quote on the news saying, "Yeah, well I knew there was something wrong at Stanford years ago blah blah....." like the bunch of hangers-on they were, they are and they always will be.
And so it goes. Because of all that and more this will probably be my last post on the issue, but remember where you saw it first, yeah? And whoever says whatever in the days and weeks to come, be absolutely clear that the whole thing has happened because of the momentum produced by a quality report written by a smart, independent analyst named Alex Dalmady.
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