Insider Trading Clampdown
May 11th 2007 14:47
From Sydney to New York, public prosecutors are on a chase after insider trading offenders with giant investment houses like Morgan Stanley and UBS, and global bank, Citibank being charged for the offenses.
Asia was not spared as well, with Bank of East Asia Chairman, David Li being accused by the US authorities as the source of the leak of insider information to his associate regarding Rupert Murdoch's bid for Dow Jones, in which David Li is a board member.
At home, there is Citibank proprietary trading case brought about by ASIC.
The recent spike in the clampdown raises some questions. Perhaps the authorities smelled something fishy is going on or is it a simple case of "incentive to do so", i.e.: greed, because the authorities have been lax in going after insider trading.
But most of all, the biggest question would be, "what is the implication for the market?"
Certainly, the warning signal was sent out to the members, executives and officers. Watch your trades.
So what do you think, Nejat Seyhun?
Asia was not spared as well, with Bank of East Asia Chairman, David Li being accused by the US authorities as the source of the leak of insider information to his associate regarding Rupert Murdoch's bid for Dow Jones, in which David Li is a board member.
At home, there is Citibank proprietary trading case brought about by ASIC.
The recent spike in the clampdown raises some questions. Perhaps the authorities smelled something fishy is going on or is it a simple case of "incentive to do so", i.e.: greed, because the authorities have been lax in going after insider trading.
But most of all, the biggest question would be, "what is the implication for the market?"
Certainly, the warning signal was sent out to the members, executives and officers. Watch your trades.
So what do you think, Nejat Seyhun?
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