The trading scandal surrounding ex-Berkshire executive David Sokol is a sign Berkshire has grown too large for Warren Buffett to manage without compliance procedures, says author and RAM Partners founder Jeff Matthews. “And that one guy with 21 people in the home office can’t handle the doings of 260,000 people around the world, and maybe they’re going to have to implement some of the kinds of things that Buffett really doesn’t like,” Matthews said. (more…)
Archive for the ‘insider trading’ Category
The expert networks that institutional investors and hedge funds have come to rely on for a trading edge may have tested the limits of what constitutes insider information, says Westlaw’s Ely Razin.
Click on the image to be taken to the Insider video.
The U.S. Attorney for the Southern District of New York this morning announced the first arrest in connection with a wide-rainging investigation of insider trading networks among research firms, hedge funds, mutual funds and other investment advisers. Don Ching Trang Chu, an executive at what prosecutors described as an “expert networking” firm, was arrested Wednesday morning and charged with conspiracy. The U.S. Attorney’s Office for the Southern District of New York and the FBI jointly charged that Chu “arranged for insiders at publicly traded companies to provide material, nonpublic information to [his] firm’s hedge fund clients for the purpose of executing profitable securities transactions.”
Read the news release from the U.S. Attorney’s office here: http://www.justice.gov/usao/nys/pressreleases/November10/chudonarrestpr.pdf.
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