Rumbling in the NY Times and in many Hedge Fund circles has the Fed hammer coming down for insider trading. It seems logical that Fed officials would have a perp walk to bring in the holiday's!!! I hear the scope revolves around a research firm tipping valued clients while in ka-hoots with Goldman.
Those who have been around long enough know this was the gig for saleman prior to Reg FD, which leveled the research trading field and was a commission tool for salestraders in the 90's. I will have more on this as information breaks.
Federal authorities are at an advanced stage of insider trading investigations that could result in criminal charges or significant civil fines against Wall Street traders and executives, DealBook's Peter Lattman reports, citing a government official.
"We are far along in investigations of insider trading," said the official, who spoke on the condition of anonymity because the inquiry was incomplete. It was unclear whether the government was conducting one sweeping investigation or looking into various smaller instances of what they suspected was insider trading.
One person briefed on the matter characterized the investigation as a "big case," saying it would likely result in arrests before the end of the new year, with the defendants numbering in the double digits. The person said that the investigation had to some extent grown out of an inquiry into the Galleon Group.
News of the investigations' advanced stages was reported on Friday night on The Wall Street Journal Web site. The article said that federal authorities could bring insider trading charges that "could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders and analysts across the nation."
The government official familiar with the matter confirmed the outlines of The Journal's article, but would not say whether arrests were imminent or whether specific companies were targets.
Goldman Sachs is among the firms under scrutiny, according to a person briefed on the investigation who was not authorized to discuss the matter publicly. The person said the inquiry involved several low-level Goldman employees, not executives.
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