I’ve blogged before about the leaks of information in Washington that led to profit-taking on Wall Street. The story continues.
“Hedge Funds Scrutinized in Washington Insider Probe,” Wall Street Journal, September 11, 2014 A1 Did someone in the government leak information to a research firm that in turn emailed several of its big clients, who then traded on the information? Did anyone know/care that they were trading on possibly illegally obtained information? I mean before the SEC got involved? Did they check? Can they proved they checked?
Information has value, even if that information was not obtained legitimately. Are you willing to put your firm’s reputation and your personal liberty at risk? What’s the culture at the firms who traded on this information? Or was this all legitimate? How well do you document your sources of information?