Reuters Insider: Rajaratnam wrongs hide legal flaws – Breakingviews
By Chris ClairReuters Breakingviews columnist Reynolds Holding tells Insider’s Rhonda Schaffler that lawmakers need to clarify words like “material” and “duty” when it comes to insider trading cases – something the Raj Rajaratnam/Galleon Group trial didn’t accomplish.
“All the law in insider trading generally is court made, case by case made,” Holding said. “And courts at different times come up with different definitions and at different times come up with different conclusions about what’s illegal. So I think it would be very helpful for Congress to say look, here’s the line. Otherwise you’ve got people out there who are trying to do their jobs, essentially – I mean, a lot of people know they’re doing wrong, but there are those people who aren’t sure where the line is.”
