Chapter Five, pages 128-150

  • Chapter five goes more in depth about the life of Sergey Alenynikov and how Wall Street affected him, his personal experience, and high frequency trading as well as HFT firms. This chapter also explains more about the inner workings of Goldman Sachs,
  • “What he’d done, in his view, was trivial; what he stood accused of- violating both the Economic Espionage Act and the National Stolen Property Act- did not sound trivial at all. Still, he thought that if the agent understood how computers and the high-frequeency trading business actually worked, he’d apologize and drop the case.”
  • This chapter goes more in depth about Alenynikov’s personal life than I had found in the article I read before. However, a lot of the phrases are exactly the same as the article and disappointingly enough, don’t go into more detail. Because I understand HFT more than I did when I read the article previously, I understand the situation with Alenynikov more. I believe that legally( although I do not claim to have an extensive legal knowledge ) Alenynikov was mistreated. His computers were searched without a warrant and he wasn’t read his Miranda rights until right before he was interrogated. I find it interesting that at the beginning of the chapter, Alenynikov was introduced as being very patriotic to Russia, and only moved to America so he could study computer programming. When he applied to switch his major from mathematics to computer science, authorities didn’t allow it. I find it ironic the authorities didn’t allow him to study programming in Russia, and in America, he ended up sentenced to eight years in federal prison without the possibility of parole. Also I think that he wasn’t all gung ho to go to America is also interesting, because of what a huge impact America had on him eventually. I think the confusion between Alenynikov and the authorities is also interesting to think about because I wonder how the situation would’ve ended up if there wasn’t that confusion. Also, I think that this chapter parallels what I have found previously about the ethical and moral values, and the naivety of people inside the business. I also have brought up previously about handling the wrongdoings of people high up on the Wall Street food chain being problematic. Goldman Sachs found in nessecary to involve the FBI in Alenynikov’s arrest, and I wonder how that relates to punishing other people in Wall Street. I think that there is the possibility that his arrest, being the only Goldman Sachs arrested by the FBI in the aftermath of a financial crisis, was more for show than practicality.

One thought on “Chapter Five, pages 128-150

  1. This post takes an interesting angle. The whole time I was reading I was thinking about terrorism and Wall Street. There have been some claims that the next kind of terrorism will be digital and that high level hackers will attempt to cripple financial markets and force the world’s markets to come to a grinding halt. I don’t know that this really pertains to the argument at hand, but it’s an intriguing notion nonetheless.



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