Charging Wall Street hedge fund boss Raj Rajaratnam with insider trading is just the beginning. Bloomberg reports that US investigators plan to charge another 10 securities professionals with insider trading. And who knows what comes after that?
All this suggests that US authorities are finally cracking down on the culture of Wall Street that bends rules and even breaks laws. Unfortunately, it took a global meltdown for that to happen.
But what’s interesting too is the way investigators are using aggressive tactics including a secret Securities and Exchange Commission data-mining project pinpointing clusters of people who all seem to make identical well-timed stock investments and phone taps. You can read details about these phone taps in this Department of Justice document.
The other interesting part about this case is the political dimensions with reports that Rajaratnam was bankrolling a charity that financed the Tamil Tigers.
Terrorism, phone taps, terrorism…the plot thickens.
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