Manipulation - Selected Reading

The Wall Street Jungle, Richard Ney, 1970

(NY Times best seller in 1970)

"The story is told that after he had been deported to Italy, Lucky Luciano granted an interview in which he described a visit to the floor of the New York Stock Exchange. When the operations of floor specialists had been explained to him, he said, 'A terrible thing happened. I realized I had joined the wrong mob.'"

The Wall Street Gang, Richard Ney, 1974

The Story of Deep Capture, Mark Mitchell, et. al., May 4, 2008

"I began working on a version of this story in January 2006, while serving as an editor for the Columbia Journalism Review, a publication tasked with upholding the standards of the American media. In November 2006, a hedge fund that was at the center of the scandal I was investigating offered the Columbia Journalism Review a great deal of money. Shortly before CJR accepted the money, I left my job, so I do not know if my editors, whom I believe to be honest people, would have allowed me to persevere. But I have no doubt that the hedge fund’s “beneficence” was aimed at preventing the publication of stories like this one."

Note: This one is very lengthy, naming names, many of which will be familiar to the reader. Of particular interest to those who play the options market, there is a link to a paper describing how "phantom stock," (aka, naked shorting) is created in league with options market makers in Chicago, read this paper.

Part 2 begins with a discussion of the Depository Trust and Clearing Corporation (DTCC) and it's facilitation of naked shorting.

And there is a Part 3.