Goldman In Insider Trading Probe?

[laughingliberal]

News leaked out today that the feds will soon be herding a whole pen full of Wall Street firms into court on insider trading charges, including, reportedly, our old friends Goldman, Sachs.

The basic charge here is that investment banks and other firms were leaking insider info about things like mergers to closely-allied hedge funds, who in turn placed the requisite bets on or against the companies in question.

The most interesting detail in the WSJ piece, to me, was a bit about an email sent by one John Kinnucan, a principal at an Oregon-based company called Broadband Research, to a number of his clients. The email reads, in part, as follows:

"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… (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."

Read more: http://www.rollingstone.com/politics/matt-taibbi/blogs/TaibbiData_May2010/236328/83512

[ProSense]

1. Probably a baseless rumor by WSJ that Taibbi is buying into.

I heard that President Obama is a corporatist sellout who would never do such a thing.

[laughingliberal]

3. Culmination of a 3 year investigation. I don't see it as having a lot to do with President Obama.

I also don't expect much but a few minor players to be ensnared while the big guys skate again.

But I'm willing to be pleasantly surprised.

[tavalon]

5. Me too

A few more Bernie Madoffs behind bars couldn't be a bad thing.

[laughingliberal]

2. delete wrong place

[Greyhound]

4. K&R. This is war and it's way past time we started fighting back. n/t

[hobbit709]

6. But will they actually prosecute?

somehow I doubt it, judging from the last few years.

[piratefish08]

7. eyes straight ahead. keep looking forward.