Insider Trading Targets Expanding (WSJ)
The government currently is investigating whether roughly 240 individuals, including hedge-fund traders and company insiders, improperly shared insider information, said Mr. Chaves. Roughly half of those, or 120, are “targets,” meaning the government believes they have violated insider-trading laws and is actively building cases against them, according to Mr. Chaves, who oversees one of two white-collar crime squads handling the New York-based insider-trading investigations. The rest are what the FBI calls “subjects,” meaning investigators believe they could have committed crimes and have approached them or could do so to build cases. The large number of “targets” of the investigation—dubbed “Perfect Hedge” by FBI agents—illustrates that the insider-trading probe is broader and deeper than previously believed and potentially the most expansive of its kind in modern history.
Merkel Wins Greek Aid Vote After Warning (Bloomberg)
“Angela Merkel’s strident insistence that bailing out Greece is vastly preferable to the alternative was important,” Kit Juckes, head of foreign-exchange research at Societe Generale SA, said in a note today as he forecast the euro rising to $1.50. “Europe’s leaders have always stepped back from the edge of the abyss after flirting with disaster.”
Focus Turns Now to Greek CDS Payouts (WSJ)
An unidentified market participant has asked a committee of the International Swaps and Derivatives Association to rule on whether the passage of legislation approving collective-action clauses for Greek debt should trigger payouts on credit-default swaps tied to Greek sovereign bonds.
Stanford Declines To Testify At Fraud Trial (Bloomberg)
R. Allen Stanford opted not to take the witness stand at his criminal fraud trial in Houston before his lawyers rested their defense. Prosecutors said they had no rebuttal witnesses, so U.S. District Judge David Hittner in Houston yesterday told the jury to return to the courtroom tomorrow. Lawyers will have two hours each for closing arguments and instructions to the jury will take an hour, the judge said. “The case is over,” Hittner told the jury. Opening statements were delivered Jan. 24.
Wealthier People More Likely To Lie, Cheat (Bloomberg)
The “upper class,” as defined by the study, were more likely to break the law while driving, take candy from children, lie in negotiation, cheat to raise their odds of winning a prize and endorse unethical behavior at work, the research found. The solution, Piff said, is to find a way to increase empathy among wealthier people. “It’s not that the rich are innately bad, but as you rise in the ranks — whether as a person or a nonhuman primate — you become more self-focused,” Piff said. “You can change that by reminding upper-class people of the needs of others. That may not be their default, but have them do it is sufficient to increase their patterns of altruistic behavior.” Read more »