Bill Cara: New York Times alleging hedge fund misdeed, Fri., June 23, 2006, 6:33 AM

« New index ETF's for short sellers: why? Fri., June 23, 2006, 5:50 AM | Main | Soft economy, strong dollar, soft gold, Fri., June 23, 2006, 6:58 AM »

June 23, 2006

New York Times alleging hedge fund misdeed, Fri., June 23, 2006, 6:33 AM

The New York Times is reporting that SEC investigators are looking into possible insider trading at a $7 billion hedge fund. Reuters has outlined the story.

A couple weeks ago I wrote about the hedge fund issues that I see coming to light. I also took the position in the Wall Street Journal that hedge funds need a degree of regulation that does not yet exist because of protection by Humungous Bank & Broker. Some people sniffed their noses, but the issues (Gabelli and now Pequot) are finally starting to focus the Little People on the ugly side of Wall Street.

A discussion this morning on CNBC by Joe Kernan got into the case of a recent firing of an SEC investigator who wanted to interview Morgan Stanley's CEO John Mack, and was told by his superiors that people in high places would not permit it.

So much for transparency in financial markets.

But, according to Kernan, that former SEC investigator is now writing members of Congress.

I smell scandal. Stay tuned.

UPDATE: 2:17pm

MarketWatch story reflects a changing regulatory environment for hedge funds.

Posted by Posted by Bill Cara on June 23, 2006 06:33:17 AM | Category:

Discourse

People do not understand all of these commissions. They really believe that they are set-up to protect the little people. THEY AREN'T AND NEVER WERE! They began back in the days when oil was pennies a barrel. All of the companies were killing themselves with competition and they needed a way to end it. So they set up government commissions to protect themselves. It has always been this way. Hopefully, the scamming of the little people within the investment industry will end someday soon. The Senate panel meeting next week on the "fail to deliver issues" (see http://www.thesanitycheck.com/DrByrneSlideshows/tabid/107/Default.aspx for more info) should hopefully be a good start to end all of these shenanigans.

Posted by: flincinc at June 23, 2006 8:53 AM [link]