The Hunt for Insider Trading

19 September 2007

Is good corporate governance just a bunch of hype?Big_brother_2
Are regulators serious about cracking down on those who don’t follow the rules?

Apparently the SEC is.

Since April 2006, the United States Securities and Exchange Commission (SEC) has filed insider trading-related lawsuits against more than a dozen investment bankers, analysts and executives.  That’s more than during all of the 1990s.

With the wild M&A activity this past summer one has to wonder if a dozen lawsuits will pale in comparison to what the SEC comes up with over the next 12 months.  After all, mergers and acquisitions are prime breeding grounds for insider trading activity.

The SEC is certainly keeping a close eye on things.  Are regulators in Canada, Australia, and Europe following suit?

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