Wednesday, April 12, 2006

The Buzz on the Insider Trading Scheme

Every banker's email was hit with the email from banker buddies regarding the ridiculous insider trading scheme that some young bankers at wall street shops were involved in.

Apparently the young men were getting tips from a Merrill Banker about bending M&A deals and also convinced an employee that worked at a printer for BusinessWeek magazines to divulge the names revealed in the "Inside Wall Street" column (Gene Marcial's weekly column). Inside Wall Street historically has "driven the market" and sensitive information like this could have resulted in massive opportunities for speculative insider trading for these guys.

The group allegedly profited in total about $6.4 million from the insider scheme. Seems like small potatoes, and it is, but it's the draconian measures that will be taken to warn others that will be the groundbreaking result of this whole situtation.

1 Comments:

At 4:04 PM, Anonymous Anonymous said...

"With a bit more patience, they could have made the money the legal way – by joining their firms’ trading desks, Breakingviews points out."

what does that really mean?

 

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