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“Citi trading on his expectation of an upcoming earnings announcement after “putting two and two together?””
His expectation could have been wrong. It was, at best, an educated guess. Not trading on material inside information that he had a duty to keep confidential. Same with the railroad workers, who had a hunch, but did not have actual knowledge.
How about the neighbours whose house overlooks the rail yards? They saw the “suits” touring the yards and guessed a deal might be in the works and traded on their hunch. Insider trading by virtue of being able to see through their chain link fence? I think not.
Gem;
Not so much fluffy, but she definitely has a thick coat of rust-colored hair.
morning!
yeah am not that excited about Jake and Taylor roaming around our nabe – that just means more paparazzi in our hood – ugh
Benson – that’s awesome – NSAL doesn’t mess around. Is your new dog sorta “fluffy”?
@lechacal so cute! *rob and 11217 together, awww.
@cgar Hey Cgar! I know I’ve been MIA. I’ve been busy with work and training for the marathon which will be over by next Sunday (thank effing god)! How have you been!
so im in the middle of times square this weekend sitting near the glowing red stairs that lead to no where and i look up from my book and realize that a group of like 40 gang bangers were all around me flashing gang signs and shooting a video. i literally almost peed my pants but all in all it was strangely fun.
*rob*
Yes, Cgar and lech would know better than I do, but think their defence would be that the ‘information’ was not specific enough.
It was material and they were insiders.
DIBS: They were able to do this “excellent research” only because they were on the inside, correct?
Could a member of the public have done the same “research?”
How do you distinguish this, in a meaningful way that provides a guide for future cases, from a low-level accountant at Citi trading on his expectation of an upcoming earnings announcement after “putting two and two together?”
Is it appropriate for our capital markets to permit those on the inside to “put two and two together” in this way and trade on it? What is the right public policy here? Should we let these guys go because they are regular Joes and go after people who aren’t sympathetic figures even if it means enforcing the law unevenly?
How do you feel about that hypothetical lower level Citi employee trading in Citi stock when you, a holder of Jan ’11 calls, don’t have access to the same information?
If people don’t have confidence that they are trading on the basis of the same information as others, doesn’t that reduce valuation across the board? And isn’t that bad for everyone?
benson, mazel tov on your Bar Mitzvah!!
(You know CDog is a Chow, right?)
dave, Andrew Ross Sorkin did a column in the Times about that last week. Insider trading = being observant. I will be shocked if that case is not tossed out. Miss Bernie Madoff for 20+ years, but by all means, let’s prosecute the 2 observant railroad workers who noticed lots of “suits” suddenly touring the rail yards.