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Oct. 6 Call Between Raj Rajaratnam and David Lau

Oct. 6 Call Between Raj Rajaratnam and David Lau

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Transcript of Oct. 6, 2008 call between Raj Rajaratnam and Galleon colleague David Lau in Singapore
Transcript of Oct. 6, 2008 call between Raj Rajaratnam and Galleon colleague David Lau in Singapore

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Published by: DealBook on Apr 25, 2011
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10/24/2012

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1 DATE

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3 TIME:
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5 WIRETAP:
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7 CALL FROM:
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9 CALL TO:
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11 KEY:
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17 RAJ RAJARATNAM:
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19 DAVIDLAU:
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21 RAJ RAJARATNAM:
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23 DAVIDLAU:
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25 RAJ RAJARA TNAM:
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43 October 6, 2008

10:26 AM

..••• GbVE~·NME~T··

..••. '. .•. · .. · •.••... · .• ··\E:>{til.~IT.· .....•. · .. ·.·.·· .

····651 .. T····

···.i •. • .• S2.09.9r.I184(RJlI)· .... ·•·•··

OVER 917-907-2350

DAVID LAU (659-631-9969)

RAJ RAJARATNAM (917-907-2350)

Unintelligible: UI

Inaudible: IA

Phonetic Spelling: PH

Voice Overlap: II

Hello.

Hey Raj.

Hey David, how are you?

Blood shed, man. (UI)

Yeah, yeah. Market's really horrible.

(UI) you'll hear about a story, you know. The, the Japanese Yen line today was cut. ..

Yeah.

... and is still being cut apparently, okay? The Japanese banks .... So the fuckers got no more room to go, especially all the yen CatTY trades.

(UI)

(UI) Euro, Yen and all the Brazilian, Yen, Mexican, Yen and all the Yen carry trades. They, they gone, their lines are cut because they, they were told not to deal with, the risk managers were told not to deal with American and European banks.

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1 RAJ RAJARA TNAM:

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42 RAJRAJARATNAM:

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Wow.

So their lines got cut. They had to, first thing is they bailout their spot position, which they're doing now and the Dollar Yen collapsed, huh?

Yeah.

Second thing, huh, is that they're selling assets. So the only assets they have is probably equity and, and fixed income, probably equity assets.

Oh, that's what's happening. Okay.

Vh, Vh.

Oh that's why the market is just, because after this stop I though you know, market would bounce.

Uh-huh, Its like free faller so I think that's the story though, the Japanese are bailing out now.

Vh-huh.

So, you know, I, 1, I don't know whether this is the, the end of the road or capitulation or not, but it will be one day of bloodshed or two more, or, or, or, two days of bloodshed, man.

(UI)

You see the Dollar, Yen? It was trading at 1-0-5 is now 1-0-1-20, you know?

Holy shit.

Yeah.

What are you doing UI?

S011Y?

Go ahead. Go ahead.

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20 [1 min 54 sec]

21 RAJRAJARATNAM:

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No, so you know ... it's a falling knife at the moment.

(UI)

I, I, I think the European stocks DI gonna to get wacked.

Yeah, it's down 7% today, you know?

Yeah.

Biggest drop, so ... I think we just have to be patient, you know, now. Don't run it.

Yeah.

You know?

So. Yeah.

How you holding up, okay?

We are okay. I think that we could break maybe 10 bucks uh for the, for the quarter,

Great, that's good news.

So we'll be probably will be, you know I think we'll make 2% this month.

Great. Great. Great. Good.

So we're just trading the crosses ...

Uh-huh.

... and uh we're trading, you know we're trading Spot and the crosses. And we're trading the, the, the, the fix income and small equity. But we're not going nuts. So we're just holding, we're just playing, playing the, the, you know the Speedy Gonzalez game.

Yeah right, just hit and run, uh?

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43 Hit and run. Hit and run, But we're doing okay. So this month ...

(UI)

" .. I think we're up, probably up 4 bucks or something like that

Good. Good. Good. Good.

So we're okay, we're okay.

(UI) Yeah. Tomorrow is a big day for me. I have big bet on AMD, let's see. You know I think the Arabs are gonna put in few billion dollars into it; and I hope the market. .. You know that stock goes up.

AMD?

Yeah.

What's, what's the StOlY there?

Well, you know they compete with Intel right in the processor of business.

Mmm.

The stock is at $4. The Arabs uh, urn in Mubadala which is the Dubai thing is gonna put 5 billion dollars into them. And split the company into two.

Mmmm.

So I hope really that stock will, uh will reflect, you know? Then I'll sell it I am actually market neutral except for that, you know?

Uh-huh.

That's my only, you know. A very tough market man just you know depressing.

This is very tough. This is very tough, You don't, if you fix your mind you die.

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1 RAJ RAJARA TNAM: Yeah, you have to change every day, right?
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3 DAVIDLAU: Yeah, you have to change. So today is uh, is uh, get me out uh
4 yellow man ...
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6 RAJ RAJARA TNAM: Yeah.
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8 DAVIDLAU: ... Japan, Japan get me out trade (UI).
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10 RAJ RAJARATNAM: (UI) trade, yeah.
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12 DAVIDLAU: Okay, then.
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14 RAJ RAJARA TNAM: Okay. Well, thank you for that input, take care.
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16 DAVIDLAU: Bye, take care.
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18 RAJ RAJARA TNAM: Bye. Bye,
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20 [END OF CALL] 5

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