Investec accusation dropped

[kiepie]

"We are satisfied with Investec's explanations. It is clear that insider trading in fact did not take place," the union said in a statement.

Solidarity lodged a complaint against Investec with the Registrar of Securities Services on Wednesday in terms of which it requested the registrar to investigate the possibility that Investec may have deliberately tried to influence its share price with its announcement that the new inflation basket will lead to lower inflation. It was also seeking clarity on the possibility that directors and senior management could have benefited by purchasing shares in the group.

However, it said after discussions with specialist banking group Investec it was clear that no insider trading had taken place.

Investec Article

So you want to tell me that all banking stocks rose on the news out of the states? And by up to 17%! Remember when the credit crunch came to a full swing during last year and the beginning of this year, our Banking stocks did not nearly decline as much. We were harder hit by interest rate hikes and the amount of our own bad debt in SA.

I can't believe Solidarity have dropped this case. The Asset Managers were working on this for a long time and discovering a "mistake" like this overnight is impossible.

 

[milomak]

well StatsSA said as much when they released the reweighting. They admitted that current inflation would most likely be lower if the new weights were used. and a number of other banks concurred (though the extent to which individual banks believed inflation would be lower varied). the difference is that no one but investec called for StatsSA to redo inflation with the new weightings.

and 702 seemed to punt the story as an investec one in a big way even though almost 2 weeks earlier most banks had published their pieces.

great timing from the investec guys it has to be said. what was that, R32mio worth of stock they bought?

 

[Turiko]

Well of course insider trading took place. I trust Mr. Nose won't let this be swept under the rug.

I'll post comment on this later, I'll revive the thread in the coming months

 

[kiepie]

Well of course insider trading took place. I trust Mr. Nose won't let this be swept under the rug.

I'll post comment on this later, I'll revive the thread in the coming months

Good to know, as all those stock and options were bought up only last month. 11 June to be precise.

 

[Arthur]

Sidebar: Inside Trading might be a crime, but it's not morally wrong. Much like holding unwrought gold or unpolished diamonds is a crime in SA, but morally quite neutral. Just because the law says it's so doesn't make it so. I'm with Murray Rothbard and the Austrian School on this issue. Google's your friend to find out more. But I digress.

 

[pos(t)er]

AFAIK it's only Solidarity who dropped the accuasation-the investigation will continue.

 

[kiepie]

AFAIK it's only Solidarity who dropped the accuasation-the investigation will continue.

Any link towards this?

 

[DJ...]

Did any of you watch the world markets that day? All financials rose around the world - yes the comment had an affect, but it was one of a few factors that promoted positive sentiment in financials.

And Investec did actually follow correct procedure but were ignored by statsSA...

 

[milomak]

Did any of you watch the world markets that day? All financials rose around the world - yes the comment had an affect, but it was one of a few factors that promoted positive sentiment in financials.

And Investec did actually follow correct procedure but were ignored by statsSA...

i think actually StatsSA pointed them to the fact that there had been a laid down procedure which Investec had known about. Why do you think it is that a number of economists wrote reports on the reweighting on 1 July yet none of them said StatsSA is wrong to continue with the basket as it is?