The FBI has begun what is expected to be a far-reaching probe into insider trading with raids on hedge funds linked to some of Wall Street's most high-profile and wealthiest players.Well, this is refreshing: It appears that someone is beginning to look at "business as usual" on Wall Street, and they have noticed that it's corrupt.
The sweep – which began with armed agents raiding the Connecticut offices of Level Global Investors and Diamondback Capital Management, both multibillion dollar hedge funds set up by former managers at Steve Cohen's SAC Capital Advisors – is already affecting stocks: a collective $15bn was wiped off the valuations of Goldman Sachs, Morgan Stanley, Citigroup, Bank of America and JP Morgan Chase. Goldman Sachs, Morgan Stanley, Citigroup, Bank of America and JP Morgan Chase.
According to reports published in the Wall Street Journal, investigators from several law enforcement and regulatory agencies are looking into multiple insider-trading rings that reaped millions in illegal profits. An FBI spokesman confirmed last night that the agency was executing "court-ordered search warrants", but declined to elaborate.
One focus is whether proprietary information is being passed from companies to hedge funds by network of independent analysts and consultants.
I also have to note that the coverage on the Marketplace radio program was repulsive.
They had an apologist fow wall street on, and he wrung his hands about how fuzzy the lines were, and how no one was really hurt.
This is bovine scatology. Just because they are robbing millions of.investors a few bucks at a time does not diminish the crime.
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