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JP Morgan Private Bank insider trading how-to

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March 4, 2008
File

barry-diller.pdf
Download from: Sweden, US, Sweden2, Latvia, Slovakia, UK, Finland, Netherlands, Poland, Tonga, Europe, SSL, TOR

Analysis
Summary

This confidential, internal JP Morgan presentation details the aspects of Hedging and monetization, the so-called PrISM concept, Rule 10b5-1 and Postpaid PrISM. Wikileaks contacted JP Morgan Private Bank successfully. The bank refused to respond once asked to deny the document.

The introduction into Hedging and monetization, titled Diversifying restricted stock requires navigating complex rules and regulation explains various regulatory limits a trader is constrained by, and explains strategies to optimize investments under these constraints.

One of these strategies, called PrISM (Principal Installment Stock Monetization strategy), is explained in the second part of the document. Besides various details on transaction flows and ROI information, the section also provides popular samples of investors into this program.

The third part of the presentation pertains to Rule 10b5-1, a regulatory rule enacted by the United States Security and Exchange Commission (SEC) and explains how PrISM relates to the constraints imposed by this rule [that is already considered to be object to abuse] This gets more detail in the figures presented in the fourth and last part.

[Wikileaks editors note: The thrust of the "original submitter"'s interpretation and a follow up article by GAWKER.COM based on this material is very likely incorrect. The JP Morgan document released by Wikileaks shows that Barry Diller is not named in the IAC example. Further IAC / Diller have issued a strong denial to Wikileaks in response: "The suggestion that Barry Diller entered into any hedging transactions is incorrect. Mr. Diller did not directly or indirectly hedge or otherwise insure his shares against a decline." — April 5, 2008]
Context
United States
Company
Barry Diller
Primary language
English
File size in bytes
709639
File type information
PDF document, version 1.4
Cryptographic identity
SHA256 929b2f71b69e06347e0f8c1ccc4aad94f1a1376a1de9d28f89e9ead5972eb83d
Description (as provided by the original submitter)

In March 2007, IAC Chairman and CEO Barry Diller entered into a complex series of transactions to "hedge" against losses in the company's stock value. From March 2007 to March 2008, the company's share price declined by 50%.

Luckily for Mr. Diller, he hedged his bets and made money. As for the rest of the shareholders, sorry!



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