John Mack Off The Hook Too

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Morgan Stanley is saying that chief executive John Mack has also been cleared by the SEC of the insider trading allegations raised by a former SEC investigation, CNBC’s Charlie Gasparino reported a few moments ago.
Former SEC investigator Gary Aguirre has said that he was investigating insider trading at Pequot Capital when he was abruptly fired after he sought to depose a top Wall Streeter. The SEC launched an inquiry after Aguirre went public with his charges, testifying before a Senate committee looking into hedge funds.
We should note that clearing Pequot and Mack of insider trading doesn’t make the allegations of political interference with Aguirre’s initial allegations go away. Those allegations were made under oath and penalty of perjury, and so far we haven’t seen any evidence that they’ve been seriously investigated.
Just because John Mack wasn’t engaged in insider trading doesn’t mean someone in the Bush administration didn’t try to protect him from an investigation.
The Score: Pequot and Mack: in the clear. The Sec: still an open question.

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