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Saturday, November 20, 2010

Some good news on horizon??

I often read the financial news and feel a bit tense because the focus is all about cheery optimism, empty 'recovery' and endless investment advice. And I often criticize mainstream media with valid cause because they are simply finance cheerleaders without the pom-poms. As for government- it has been quite a long time since they did anything legislatively or otherwise for the general public's benefit.   But on rare occasion there's a news story in a mainstream news outlet that gives me some hope that maybe there is some justice amid the endless seas of corruption and economic power games.

From Wall Street Journal, 11/20/10 --

U.S. In Vast Insider Trading Probe

"Federal authorities, capping a three-year investigation, are preparing insider-trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders and analysts across the nation, according to people familiar with the matter.

The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say.

The investigations, if they bear fruit, have the potential to expose a culture of pervasive insider trading in U.S. financial markets, including new ways non-public information is passed to traders through experts tied to specific industries or companies, federal authorities say.

One focus of the criminal investigation is examining whether nonpublic information was passed along by independent analysts and consultants who work for companies that provide "expert network" services to hedge funds and mutual funds. These companies set up meetings and calls with current and former managers from hundreds of companies for traders seeking an investing edge.

In another aspect of the probes, prosecutors and regulators are examining whether Goldman Sachs Group Inc. bankers leaked information about transactions, including health-care mergers, in ways that benefited certain investors, the people say. Goldman declined to comment."

~  If Santa Claus could bring me one present this Christmas season, this would be it.

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