Gupta arrest puts Corporate America on notice 26 Oct 2011 Prosecutors have nailed dozens of insider traders, including Galleon founder Rajaratnam. Those now look to be mere prologue to the case against former McKinsey boss and Goldman director Gupta. The charges will be tough to prove, but a conviction would be the ultimate deterrent.
Insider traders pay too much for choosing court 30 Sep 2011 Uncle Sam rewards cooperation with milder sentences. But Galleon-related cases show that prosecutors’ targets are heavily penalized just for asserting basic trial rights. Judges should be wary of too big a difference - trials like Raj Rajaratnam’s bring needed clarity to the law.
Sell-off tests hedge funds’ post-crisis resilience 16 Aug 2011 Hedgies have doubtless suffered in the market rout. But painful lessons learned in 2008 have made them more robust in turbulent conditions. Their funding is more secure, and they’ve borrowed less. Still, it’s far from clear their performance merits the high fees.