 The Wild Wild World of Wealth |
The Death of Insider Trading II On Thursday, prosecutors charged fourteen more people with insider trading. The defendants all have links back to Galleon, in a corrupt web growing broader by the day. Acrimoney pays especially close attention to behavior on Wall Street and inside Hedgistan. Today’s story falls into our favorite category: You can’t [...]
Galleon, the SEC, and Wall Street’s behavior will dominate financial news for months to come. But what about the people in the trenches, the stockbrokers and sales assistants that slog through their days outside the public’s view? What is their world like?
Galleon invested in high-tech businesses, which build chips and other gizmos that enable information to “travel at the speed of light.” In doing so, the hedge fund sewed the seeds of its own demise. Its portfolio companies manufacture products that 1) negate the long-term value of insider information and 2) make it more difficult to obtain.
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