Sunday, November 21, 2010

Crazed Insider Trading Cases Could Come by the End of the Year

The SEC is again out of control. People involved with bringing new insider trading cases continue to leak inside information on the cases, to continue to spin the story the way they want it to be perceived by the media and the public. As far as I am concerned, the only insider cases that need to be investigated and prosecuted are the leakers of this insider information to the media. Who leaked to WSJ? And who is now leaking to LaTi?

Whatever happened to prosecutors bringing their cases in court instead of anonymously in the newspapers? Are their cases that weak? Do they seek more attention than "scan me addicts"?

Here's the latest from LaTi:
Federal investigators in New York are wrapping up an extensive investigation into allegations of insider trading and other stock-trading irregularities that could bring criminal charges or monetary fines against a large number of Wall Street executives and investors, a Washington official who has been briefed on the inquiry said Saturday.


Speaking anonymously so as not to jeopardize the case, the official said the investigation has been underway for "several years" and is likely to result in the prosecution of traders "around the country."

"They are in the final stages with this," the official said. "It could bear fruit by the end of this year."
Huh, how does speaking anonymously not jeopardize the case? Speaking at all spins the case? The leaker is a crazed power freak coward.

From what we know from the leaks to date, at least some appear to be centered around "expert networks". These are networks of  current and former industry specialists that are organized to provide insight into industries and individual companies. They should be considered an upgraded, focused version of the Wall Street Journal. It is completely absurd to bring charges against money managers using such news services. And this doesn't even touch the fact that insider trading, itself, is in most cases a dubious crime.

No comments:

Post a Comment