Opening Bell: 10.19.09

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Rajaratnam Became Billionaire Driving Analysts, Demanding Edge (Bloomberg)
Raj-Raj wanted his people to have "better information than anyone else," by which he meant 411 they could trade on illegally. Also, people who were late to 8:35AM meetings were fined $25.
Arrest of Hedge Fund Chief Unsettles the Industry (NYT)
"It is pride, and I want to win," Mr. Rajaratnam said in "The New Investment Superstars," a book by Lois Peltz published in 2001. "After awhile, money is not the motivation. I want to win every time. Taking calculated risks gets my adrenaline pumping."

US Said To Target Wave Of Insider Trading Cases After Galleon
(Bloomberg)
Gird your loins: "The pending crackdown, based on at least two years of investigation, targets securities professionals including hedge- fund managers, lawyers and other Wall Street players, the people said, declining to be identified because the cases aren't public. Some probes, like the one that focused on Rajaratnam, rely on wiretaps. Others stem from a secret Securities and Exchange Commission data-mining project set up to pinpoint clusters of people who make similar well-timed stock investments."
Barclays chairman warns of onerous regulation (FT)
"There is the real risk of regulatory arbitrage," Marcus Agius said in an interview with the FT. "The same principles will apply in different ways in different capital markets with different outcomes. This is a global financial system. It is fungible. So I am very concerned there should be a level playing field."
Fade To Blackstone (NYP)
Supposedly Schwarzman is having trouble raising money for a new leveraged buyout fund (the firm has only collected $9 billion since fundraising began in early 2008, and they wanted at least $20 billion).

Citigroup might lose Mexican subsidiary
(FT)
Citi might lose Banamex, which accounts for about 15 percent of its global profits, due to last year's government injection, because it places the subsidiary in breach of national law, which bans foreign governments from owning a stake in domestic banks. So, that would be unfortunate.
UBS Registered Mail Warns U.S. Clients on Tax (Reuters)
Check out the big brain on UBS: "Swiss bank UBS AG warned U.S. customers by registered mail their account details may be given to U.S. tax authorities, a method that could itself breach secrecy laws, a Swiss paper said on Sunday. The use of registered mail and envelopes showing the sender was UBS could enable the U.S. authorities to trace customers wanted for tax evasion well before their details are handed over under a U.S.-Swiss double taxation agreement."
Madoff Montauk home sale completed for $9.41 million (Reuters)
Sale of the hideous beach house beat expectations of $8.75 mill.

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