City sues BofA, NYSE, Virtu and dozens of others over HFT


The city of Providence in Rhode Island has sued Bank of America (BAC), Virtu (VIRT), the New York Stock Exchange (NYX, ICE) and numerous other exchanges, brokerages and traders over high-frequency trading (HFT).

Providence argues that the defendants have siphoned off billions of dollars by rigging the securities markets, as Michael Lewis has claimed in his new book, "Flash Boys."

Providence is seeking unspecified damages from 42 defendants on behalf of all public investors that traded stocks in the last five years.

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Comments (23)
  • Bret Jensen
    , contributor
    Comments (13987) | Send Message
     
    Translation: We are broke because of our public unions and their overpayed/underworked members.....who has deep pockets that we can sue to get us out of own mess.
    20 Apr 2014, 07:05 AM Reply Like
  • vinndorr
    , contributor
    Comments (16) | Send Message
     
    Sorry but the truth be told. I came from a working class immigrant family with self respect and mutual respect of others. I was luck to come to the USA (The land of Opportunity). My dad worked day and night so that I could have the chance to attend American Universities and achieve my degrees. A chance that he never had,a chance at a good honest American life with respect. I am now 60 years old and have done the same for my children. I am disappointed with the American business strategy and my fellow managers. You see the big difference is in the way I think and the way the rest of you think. The American Manager is full of self consumption Greed and what can he do to self indulge and make him self rich without getting caught and avoid Jail.( No honer among thieves) That said when I make a decision it's made on the basis of what it best for my Company, my fellow managers, my employees, and the public and its in that order and I must satisfy all of them. If a decision is only good to me its not the right one. The American Consumer has lost respect for Corporate America and the American Government. Its not right that the top 1% keep getting so ungodly wealth on low hourly foreign wages and then bring the good back and sell them to the American public for outrageous profits and only give pennies to the few American workers that they may have. It American Greed that is destroying the middle class and at the same time making more millionaires at the cost of the middle class. This being said you believe that you can fix it buy opening the borders to more low cost labor. All of you at the TOP HAVE LOST SIGHT OF THE AMERICAN DREAM AND MUTUAL RESPECT. Get your head out of the clouds its not the Unions its the GREED at the top. Its OK for you to cheat, steal and connive to get ahead. Just blame the unions and you have fixed the problem right.
    20 Apr 2014, 10:55 AM Reply Like
  • mag1205
    , contributor
    Comments (2363) | Send Message
     
    Thank YOU vindorr for expressing REALITY about the bas..td 1% sucking blood out of working class families. They are controlling every congress & senator through their lobby groups & that's why they get scott free for criminal activities.
    20 Apr 2014, 12:11 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (682) | Send Message
     
    You nailed it Bret!
    20 Apr 2014, 06:04 PM Reply Like
  • darnoc111
    , contributor
    Comments (1570) | Send Message
     
    I would have to agree with Bret since he did not say anything about the rich. As for those looking out for themselves I would say that most government management are the same if not worse than the private sector. Government lives off those that succeed in the private sector since government produces nothing. That said I think that there is in general a lack of concern by most people for any one but themselves. Maybe this is why so many are looking for someone to blame other than themselves.
    20 Apr 2014, 07:27 PM Reply Like
  • Noquiche
    , contributor
    Comments (246) | Send Message
     
    The 1% argument is specious. Corporations are not the 1% and that is who is being sued i.e. the shareholders, which includes some 1%'s but also anyone that has a 401K or IRA with mutual funds. Secondly, the top 1% of earners are there because they invest their money and endure the risks instead of relying on a salary. When the stock market rises 230% it doesn't take a rocket scientist to figure out why they may do better than someone that gets a 3-5% raise per year. The moral of the story is: either take some risks and make possible gains, or quit coveting the gains of those who did.
    23 Apr 2014, 08:14 AM Reply Like
  • dacama1
    , contributor
    Comments (221) | Send Message
     
    I wasn't going to be so kind. Unfortunately RI is still the armpit it has been for decades.
    20 Apr 2014, 08:24 AM Reply Like
  • ptboya
    , contributor
    Comments (16) | Send Message
     
    Interesting (mis)take by Brett on current US where the percentage of those earning less than ⅔ the median earnings is the highest among advanced countries at 25%; where average real wage growth as a percentage of annual productivity gains has been less than 2% over the last 15 years, the lowest among advanced countries; where the income share of the top 0.01% equals 5% of all income, higher than the 3.7% this cohort earned in 1929, the height of the last gilded age; where many of the HFT folks can take advantage of carried interest paying far less in taxes as a percent of income than the average "overpaid" worker in the public sector per your worldview; and where the value added to society by these HFT folks is close to zero.
    20 Apr 2014, 08:27 AM Reply Like
  • gfrank58
    , contributor
    Comments (53) | Send Message
     
    RI is mostly gangsters and corrupt politicians. They are doing what they know. Extortion.
    20 Apr 2014, 08:52 AM Reply Like
  • vinndorr
    , contributor
    Comments (16) | Send Message
     
    Sorry but the truth be told. I came from a working class immigrant family with self respect and mutual respect of others. I was luck to come to the USA (The land of Opportunity). My dad worked day and night so that I could have the chance to attend American Universities and achieve my degrees. A chance that he never had,a chance at a good honest American life with respect. I am now 60 years old and have done the same for my children. I am disappointed with the American business strategy and my fellow managers. You see the big difference is in the way I think and the way the rest of you think. The American Manager is full of self consumption Greed and what can he do to self indulge and make him self rich without getting caught and avoid Jail.( No honer among thieves) That said when I make a decision it's made on the basis of what it best for my Company, my fellow managers, my employees, and the public and its in that order and I must satisfy all of them. If a decision is only good to me its not the right one. The American Consumer has lost respect for Corporate America and the American Government. Its not right that the top 1% keep getting so ungodly wealth on low hourly foreign wages and then bring the good back and sell them to the American public for outrageous profits and only give pennies to the few American workers that they may have. It American Greed that is destroying the middle class and at the same time making more millionaires at the cost of the middle class. This being said you believe that you can fix it buy opening the borders to more low cost labor. All of you at the TOP HAVE LOST SIGHT OF THE AMERICAN DREAM AND MUTUAL RESPECT.
    20 Apr 2014, 10:03 AM Reply Like
  • jackooo
    , contributor
    Comments (1738) | Send Message
     
    "Its not right that the top 1% keep getting so ungodly wealth".

     

    You have set up parameters accordingly, I see! You besmirch the rich who supply the jobs. I was never employed by a poor person.
    You besmirch the poor as being inadequate and unable to earn a decent wage. But the children multiply.

     

    Although I am by no means rich I labored since I was a child at jobs without complaint and retired with an income and education that produced that reasonable income. If I could do it anyone can. Why? Because I am basically lazy.
    Your views are typical of Obama's views. Class warfare at all cost.
    20 Apr 2014, 10:48 AM Reply Like
  • darnoc111
    , contributor
    Comments (1570) | Send Message
     
    I remember when I grew up no one complained about how much others had. If they did I am sure that the rest of them would have thought that person as stupid or lazy and wanting a free ride. People were happy with what they had even though it was very little compared to todays' standards. What has changed? Nothing, people are still the same other than now they envy what others have. Why, because as government has grown larger and larger the feeling of opportunity has decreased. Have people woke up and realized this is the problem, NO. Instead they keep wanting more from government. More redistribution of wealth, more blame someone else for their not doing as well as they think they should. But how many now go and work for low wages and say why should I work hard for what they pay me? With this mindset they will never be able to grow and prosper since they have locked themselves into their circumstances. I have lived on the street and pulled myself up and did the best I could and I find the current mindset as something coming out of a socialist country of years ago. If we truly want to grow and prosper as a nation then our government needs to shrink by a huge amount. If government continues to grow unchecked then the USA as we who are older once knew will be gone and the complaints against those who have to those who do not will grow ever louder till our government collapses under it's own weight. Then all will find out how hard things could really be!
    21 Apr 2014, 08:29 AM Reply Like
  • jackooo
    , contributor
    Comments (1738) | Send Message
     
    "Its not right that the top 1% keep getting so ungodly wealth".

     

    You have set up parameters accordingly, I see! You besmirch the rich who supply the jobs. I was never employed by a poor person.
    You besmirch the poor as being inadequate and unable to earn a decent wage. But the children multiply.

     

    Although I am by no means rich I labored since I was a child at jobs without complaint and retired with an income and education that produced that reasonable income. If I could do it anyone can. Why? Because I am basically lazy.
    Your views are typical of Obama's views. Class warfare at all cost...
    20 Apr 2014, 10:49 AM Reply Like
  • jgaerlan@sbcglobal.net
    , contributor
    Comment (1) | Send Message
     
    How stupid can americans be? Think of the party that started this mess by lying and cheating the american people. You should be aware that the supream court is not a legislative body. President are elected by the people. The law is to protect the welfare of the public.
    20 Apr 2014, 02:13 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1149) | Send Message
     
    MORE BS served up now by a corrupt Government that is after companies doing the bidding of their investors. If RI wants to file law suit against someone let them file against the SEC for being OK with HFT not the banks that are only servicing debts and have trading desks. The HFTs are mostly Hedge Funds & the like Banks with trading desks are not making the $ other than the costs the charge to make the trade. The Hedge Funds are ones making the $ off the High Frequency "Trade" as in profit from the buy and sell.

     

    All this manages to do again is steal $ from the current common stock owners who NOW own shares in the companies getting raked over the coals again.

     

    M
    20 Apr 2014, 02:59 PM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Our law is so screwed up and our judicial system is so far behind.... In a case like this the bankers/and everyone else are taking advantage of areas where there just isn't law to apply... Because law makers just dont have a clue, and are backlogged years because of archaic our system... thus we end up with everyone blaming everyone? Not the best way to come to solution?
    21 Apr 2014, 06:09 AM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
     
    My background is much like vinndorr but my opinions are for from the same. I am 6 years older then him. My father was proud of the fact that he was the first person to graduate from highschool out of all the families in his section of town.

     

    I say anybody is free to accumulate as much as they can. They have no obligation to help anyone else accumulate anything
    That is the American way.
    21 Apr 2014, 09:20 AM Reply Like
  • robscheerger
    , contributor
    Comments (5) | Send Message
     
    If only Obama was the socialist Bret and the other parrots believe he is. The rich would be paying a reasonable tax rate, we would be negotiating reasonable trade policies, and the poor and middle class would have a reasonable chance to begin to rebuild. Bret would still be squawking, but at least it would have some truth.
    21 Apr 2014, 09:39 AM Reply Like
  • pim69
    , contributor
    Comments (379) | Send Message
     
    If the rich are paying an "unreasonable" tax rate, it's because they are taking advantage of the SAME tax system that we all have access to. It's not a separate magical tax system for the rich. We ALL have the ability to start our own business to create our own tax write offs (if you have the determination and work ethic), split our retirement savings and income to registered/non-registered methods and domestic dividends to assist in reducing our tax burden, marry a person with a lower or zero income, have children, etc.

     

    Also, I see complaints in these comments about big companies and their shareholders. Do you have a 401k? It's probably got mutual funds in it, so you are probably one of those shareholders that you are complaining about! Would you like your retirement savings to be wiped out by your investments tanking because these companies no longer care to generate profits?

     

    The only reason more people are not wealthy or on their way to being wealthy, is because they spend too much of their income. Save 50% of your income in equities, and you will rapidly reach early retirement. It's actually ridiculously easy. If you don't make enough income to save 50% (in a simple rental apartment/room with NO car and no debt preferably commuting to work by bicycle/walking and cooking at home), then you need to work towards finding better employment or move to a place where you can do this. If you insist on living in an expensive place or a place where affordable commuting is not possible, then you are accepting a more simple lifestyle by choice, unless you pursue higher income to reach this savings rate.
    21 Apr 2014, 12:25 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1149) | Send Message
     
    I agree: I live WELL under my means, I buy OLD cars and fix them myself, I do all my own home repairs etc. I'm ex military and saved a lot of my leave and when I got out I got a nice check for those un-used vacation days. I worked part time while going to school and worked full time & did part time repair work on the side. I have moved thru a few companies each time taking my 401Ks and putting them into my Scottrade IRA and make my own decisions. I grew up with nothing lots of time lived in rentals that had no TV's no phones and no car often. That was then, I learned if you want something work for it earn it and care for it...

     

    NOW I am not working at 47 yrs old, I'm going back to school part time I trade part time and STILL never have bought a new car, I drive 10 to 20 year old cars keeping them on the road in my free time... I don't HAVE to go to school but it furthers my education and I enjoy kids at school and try & set some of them straight on the REAL WORLD away from mommy & daddies care.

     

    M
    21 Apr 2014, 03:49 PM Reply Like
  • TBV
    , contributor
    Comments (176) | Send Message
     
    Is BAC an ATM for cities now? Government rapes BAC and cities doing sloppy joe?
    21 Apr 2014, 02:51 PM Reply Like
  • Buckoux
    , contributor
    Comments (9056) | Send Message
     
    Any judge worth a bribe will throw this over-reaching action out of court.
    21 Apr 2014, 03:59 PM Reply Like
  • mscambridge1
    , contributor
    Comments (61) | Send Message
     
    Well stated Bret; or in other words, why can't we jump on this gravy train?
    21 Apr 2014, 04:05 PM Reply Like
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