SEC Launches Insider-Trading Probe Of Wall Street

Law360, New York (February 6, 2007, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has requested trading and other information from about a dozen brokerage firms to see if Wall Street banking employees are leaking information to hedge funds.

While insider-trading and trading ahead of client orders has long been issues on Wall Street, this inquiry seems to be focused on whether banks tip customers who then trade at another bank to make the trail harder for regulators to follow, says a report in Tuesday’s New York Times.

The newspaper said the SEC sent...
To view the full article, register now.