Tuesday, June 2, 2009

The Debts of the Spenders: The SEC Investigates Itself For Insider Trading

So....the agency that is supposed to investigate and prosecute others for insider trading is now forced to purge its own ranks?

I don't find this particularly surprising. Top management at government regulatory agencies have a history of being involved in incestuous relationships w/the private sector. Based on such shining examples of moral behavior it is no wonder that lower level employees decided to ape their superiors.


In his semi-annual report to Congress filed Monday, SEC Inspector General David Kotz outlines several investigations into possible instances of employees' disclosure of nonpublic information in violation of agency regulations.

The cases include possible disclosure by an SEC attorney to a large investment bank of a former bank employee's contacts with the agency, possible leaking of information from an SEC database to an FBI agent who was later convicted of fraud, and possible improper disclosures in an unnamed book and to a national news organization.

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