Not too long ago, the state of stock research on Wall Street had grown stale. Increasingly demanding investors wanted more than traditional hum-drum reports. They were especially hungry for insider perspective on various industries. They didn't want to hear from analysts and IR folks, they wanted insights from former executives and consultants with inside access.
So, research outfits started putting together networks of experts and making lots of money from investors who wanted to hear their views. But a recently revealed historic insider trading investigation is now looking at whether lines were crossed.
How aggressive are investigators being? John Kinnucan, of Broadband Research in Portland, Ore., sent an email on Oct. 26 to roughly 20 hedge fund and mutual fund clients telling of a visit by the FBI. "Today two fresh faced eager beavers from the FBI showed up unannounced (obviously) on my doorstep thoroughly convinced that my clients have been trading on copious inside information," the email said.
"(They obviously have been recording my cell phone conversations for quite some time, with what motivation I have no idea.) We obviously beg to differ, so have therefore declined the young gentleman's gracious offer to wear a wire and, therefore, ensnare you in their devious web," he wrote. We'll see whether Kinnucan comes to regret this.
For more:
- here's an article
Related Articles:
Insider trading charges against Goldman Sachs coming soon
SEC aims at hedge fund insider trading
Wiretaps at issue in the Raj Rajaratnam case
Insider trading, the importance of best practices
TECHNITROL TAKE-TWO INTERACTIVE SOFTWARE SYNTEL SYNTAX-BRILLIAN
No comments:
Post a Comment