Unlike Martha Stewart’s insider trading, this scheme better exposes the vast network of cheaters who report to hedge funds for Don Corleone type rewards: “The charges against Galleon claim the firm was connected to a network of informants — including executives and employees at Intel (NASDAQ: INTC), IBM (NYSE: IBM), Akamai (NASDAQ: AKAM), Polycom (NASDAQ: PLCM), McKinsey and rating agency Moody’s Corp.(NYSE: MCO) — who exchanged inside information.” (MarketWatch)
Surprised? If so, you are radically disconnected from Wall Street. However, given how toothless and weak the SEC has become in the last decade, punishing insider trading has become as rare as bipartisanship in Washington.
Too bad Rajaratnam wasn’t a politician. In that case his behavior would have been completely legal.