Well, we sure went through a lot for this result. Fired SEC investigators, charges of political favoritism, hearing before the Senate. And now this: the SEC has cleared Morgan Stanley bossman John Mack in its (second) investigation into allegations of insider trading at Pequot Capital, according to the official word from Morgan Stanley. This isn't exactly surprising news. Charlie Gasparino reported that the SEC had cleared Mack close to two months ago.
What is surprising is that it took so long for the official word to come down. Pequot itself was cleared a while back. And if Pequot was engaged in insider trading, no amount of tipping from Mack (assuming for the sake of argument there was any) would amount to a crime.
The U.S. Securities and Exchange Commission formally cleared Morgan Stanley (MS.N: Quote, Profile , Research) Chairman and Chief Executive John Mack in the commission's insider trading probe against hedge fund firm Pequot Capital Management, a bank spokeswoman said on Friday.
Morgan Stanley spokeswoman Jeanmarie McFadden said the SEC advised Mack in a letter "a few days ago" that it would not pursue any enforcement action against him. She declined further comment.