U.S. in Vast Insider Trading Probe
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Federal authorities, capping a three-year investigation, are preparing insider-trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders, and analysts across the nation, according to people familiar with the matter.
http://online.wsj.com/article/SB10001424052748704170404575624831742191288.html?mod=djemalertNEWS
3 yrs of investigations, may be breaking by year's end.
This is going to be huge!
We'll see if this thing really has any meat. I don't see how these insider trading probes can really add value for the average investor.
I read that article last week. When stocks go up over 100% the day before they get bought out, there's something fishy going on. But, to Times' comment about how it adds value to the average investors, I'm not sure it does. The average investor probably doesn't care if something is illegal as long as they don't know about it and it makes them money.
While I applaud the authorities for their hard work, our client's won't benefit from this in the short term. It'll just piss em off and make them trust us even less.
Spiff, even the WSJ article is iffy about the probable outcome of the investigation. If I own two companies in an index, and one gets bought out by the other, why do I care if gamblers bet money on the short term? More drama from the nanny state. Regulators should focus on IPOs and private placements.
I'm hoping that much of these investigations are about illegally shorting and manipulating stocks and bonds in the big downturn. Orchestrated attempts to spread disinformation, rumors, etc. Those kind of folks belong behind bars, and barred from the industry. I'm probably a fool to even have the slightest hope that some major firms like GS are taken to task, with significant fines and punishment.