We’re still in London. Baa baa BA. Having been told our flight to JFK was on, but would leave 2 hours late and that we were expected to check in at the normal time, we schlepped ourselves to Hethrow only to told upon arriving at the BA terminal that our flight had been cancelled while we were en route to the airport via the Underground. BA failed to use our mobile number or email address to update us.
The departure hall was full of other people in the same boat many of whom had spent far more than we had getting there. There were about 80 BA staffers around to add to the chaos none of whom seemed to be trying to phone passengers. We got rebooked to a flight leaving April 26. About 4 hours later the British reopened their airspace and flying began again. But we had left the airport for Mudchute Manor, our London base.
Being in London helped me get more very important infomation about three yield stocks in the model portfolio, for paid subscribers only of course. And a general update on the outlook for a 4th British share.
Being across the pond, maybe I was too European in my reaction to the SEC charging Goldman Sachs with civil fraud for misselling the Abacus mortgage-backed synthetic collateralized debt obligation. Wrote subscriber Dr. AA, ‘are you serious? A synthetic CDO is composed of credit default swaps on mortgage bonds. How can you purchase a credit default swap if there is nobody on the other side. This was a private placement with Goldman functioning as placement agent, not underwriter.’
Dr. AA added: ‘I personally read the Abacus flipbook and I have heard it would have been a violation of SEC rules .. had they identified counterparties of the CDS.’
It would not have violated SEC rules but it certainly would have violated standard customer privacy protection. I do not think the Goldman error was failing to identify John Paulson & Co, as the short seller of the CDOs but in failing to inform buyers going long that there was a short seller who had selected the tranches to include.
Further supporting my view is the fact that Goldman has stripped the trader at the center of the alleged fraud of his license to operate here in London. Mr. Fabrice (Fabulous Fab) Tourre has been de-registered with the UK Financial Services Authority but he has not been suspended and continues to be paid for the work he is now not allowed to do.
Here is the news about the British stocks, plus updates from Brazil, Panama, Israel, India, and Britain about other shares we cover.
