As you may have heard, the US government is putting on a holiday spectacular this year called Insider Trading Fest(ivus) 2010. Capping a three year investigation, charges that “could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders and analysts across the nation” are said to be coming any time between now and early next year. Yesterday, Greenwich-based Level Global and Stamford-based Diamondback Capital Management, both headed by SAC Capital alums, were raided by the FBI. The Bureau also recently dispatched two hired guns to an analyst’s home, where they asked him to wear a wire while having a conversation with “this guy” they told him they were going after, that “guy” being someone at SAC, which follows last year’s unsuccessful attempt to get former SAC analyst-cum-informant Choo Beng Lee rehired in order to record chats with noted individuals there. Securities law professor John Coffee told Bloomberg those approached by the feds and asked to cooperate “will get greater leniency if they [deliver] a bigger fish” and while it may be premature to jump to conclusions, the Nancy Drews among us might infer the government has its eye on one fish in particular! Continue reading »