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Post by unlawflcombatnt on Nov 22, 2010 12:44:27 GMT -6
It looks like the FBI might have done something right today.
from MarketWatch: FBI Raids 2 Hedge Funds Nov. 22, 2010 By Alistair Barr " The Federal Bureau of Investigation raided 2 hedge funds as part of a big insider-trading probe, the Wall Street Journal reported Monday.
Search warrants were issued for Diamondback Capital Management and Level Global Investors, the newspaper added. The 2 funds raided by the FBI are spin-offs from SAC Capital Advisors, the big hedge fund firm run by Steven Cohen, the Journal noted.
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Post by jeffolie on Nov 22, 2010 14:44:03 GMT -6
I do not trust the FBI.
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Post by jeffolie on Nov 22, 2010 14:56:51 GMT -6
Denninger nails this. Of all the fraud, unethical, immoral behavior by financial elites, the FBI merely goes after 2 hedge funds. ======================================================================= FBI Actually Does More Than Eat Donuts I saw a cop! I did, I did! FBI raids seeking documents from three hedge funds are related to a series of insider trading investigations directed by the office of Manhattan U.S. Attorney Preet Bharara, according to a person familiar with the probes. The offices of Level Global Investors LP and Diamondback Capital Management LLC, firms founded by alumni of SAC Capital Advisors LLC, were searched by Federal Bureau of Investigation agents, the FBI said today. Agents also executed a search warrant at the offices of Loch Capital Management, according to another person familiar with the matter. Both declined to be identified because the probes are ongoing. Looks like the FBI was worried about a paper shredder party and decided to show up with warrants instead of issuing subpoenas. Probably a good idea. One has to wonder though - why are we only raiding Hedge Funds? Are not the big investment banks where a lot of this information comes from? Further, it's not illegal to trade on information unless you get it from a privileged source. That is, if I overhear someone talking the subway, I can use that. What I can't do is get information from a big investment bank's M&A desk about some deal that's about to be announced and trade that. Of course where there's someone who gets information (and trades on it) there is also someone who gives information, and given the risk, the "give" part is always bought in some fashion. Whether the "buy" part is some sort of literal bribe or something else, you can bet people don't take the risk of disgorgement and civil fines, not to mention the possibility of going to jail, without getting something in return. Wake me up with they raid Goldman's offices. market-ticker.org/
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