Meltdown

Jack emails: Was Rosh Hashana 2009 trading a precurser to the May 6 Meltdown on the New York Stock Exchange (NYX NYSE)?

While even the most secular Jews worldwide were either in Temple or the golf course, but certainly not in the office on Rosh Hashana out of simple respect for their coreligionists, one of the major Israeli banks decided to execute a series of trades on the NYSE.

Divine wrath was not simply inevitable but instantaneous — as close to being Struck Down By Lightening as possible in financial markets.

Not only did the Israeli bank lose millions for their own clients, but allegedly violated basic NYSE trading protocol, resulting in tens of millions in losses for unsuspecting American investors from Philadelphi-a to the San Francisco Bay; all due to the alleged ignorance of proper NYSE procedures by an Israeli bank insisting upon trading in a somnulent market on Rosh Hashana — the modern day equivalent of the dark days of Kol Nidre Night Gala Balls by Bolshevik Jews.

In public filings, one of the most respected attorneys in Tel Aviv from perhaps the most prestigious law firm in the country, Ehud Artzi, defended the bank by accusing the NYSE of a computer glitch unprecedented in the history of the NYSE.

After the May 6 meltdown, people stopped laughing at Attorney Artzi’s apparent professional suicide by accusing the NYSE of computer incompetence. In fact, his defense — filed months beforehand — reads as a near script of the events and losses that occurred on May 6, and the NYSE seems to be having a devil of a time offering clear refutation of Artzi’s accusations. No one is laughing at Artzi’s response filing anymore.

Aside from institutional investors from Boston to LA, Washington has now taken notice. Very senior circles in Washington.

Either Artzi and his partners at S Horowitz Law Firm have committed professional suicide by taking on the competence of the NYSE computer facilities, or a significant piece of the puzzle of what led to the most erratic trading day in NYSE history has been filed in a public litigation in a courthouse on the other side of the planet.

Are the Israelis being, for lack of better terminology, simply Israeli, or did Artzi identify with astonishing prescience a key piece of the puzzle to the May 6 Meltdown months before it occurred?

About Luke Ford

I've written five books (see Amazon.com). My work has been followed by the New York Times, the Los Angeles Times, and 60 Minutes. I teach Alexander Technique in Beverly Hills (Alexander90210.com).
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