Insiders and Outsiders

By |2016-11-17T15:40:13-04:00October 14th, 2016|Categories: Global Market Update|Tags: , , |

Insiders and Outsiders What’s wrong with insider trading? Photo: Massimo Mancini. Source: Unsplash Insider trading strikes most of us as deeply unfair. If a banker passes along a tip about an upcoming deal to his cousin, and the cousin uses the information to make a bundle, we know in our guts that this is wrong. But who’s the victim? If the banker didn’t receive any compensation for leaking the information, where’s the crime? Some legal scholars have [...]

700 Billion Little Birds

By |2016-11-17T15:40:44-04:00October 5th, 2016|Categories: Global Market Update|Tags: , , , |

Could $700 billion create some moral challenges? Lady Justice. Source: Wikipedia In the midst of the financial crisis, Congress passed the TARP program—originally designed to buy troubled assets from banks, but actually used to provide additional capital to the banks. It didn’t buy CDOs-squared and mortgage-backed securities backed by NINJA-loans—mortgages to people with no income, no job, and no assets. Instead, the TARP program mostly bought preferred shares issued by banks, injecting capital directly into the banking [...]

Inside/Outside/Upside Down

By |2016-11-17T16:34:29-04:00November 12th, 2014|Categories: Global Market Update|Tags: , , |

Do you know what insider trading is? Are you sure?Insider trading is illegal. It’s part of our regulatory landscape. If you’re a corporate insider and have material, nonpublic information about a company’s prospects, you’re not supposed to profit from that information. This applies to insiders and anyone to whom they’ve provided information. […]