As you may have heard, the FBI has something exciting planned for the holidays this year-- 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. So far the Wall Street name that's gotten the most press-- not because they've done anything wrong but because people love to hate on the beautiful-- belongs to a hedge fund headquartered in Stamford, CT. But who are the others that may have accusations of wrongdoing laid on their asses? For one, some employees of Goldman Sachs. But lest you worry about waking up to Lloyd Blankfein being escorted out of 15 Central Park West wearing only his HLS sweats, fear not-- apparently those being probed at GS are a bit lower on the totem pole.
Goldman Sachs is among the firms under scrutiny, according to a person briefed on the investigation who was not authorized to discuss the matter publicly. The person said the inquiry involved several low-level Goldman employees, not executives.
The vagueness of this statement clearly leaves it open to some interpretation. Just so we can be mentally prepared, are we to assume they're talking about:
* (Least likely) VP-level employees?
* (Somewhat likely) Secretaries?
* (More Likely) First years trying to make a name for themselves?
* (Most likely) First years covering for partners, each of whom is assigned a buddy upon being promoted, who takes the fall for them in such instances?
* (THIS IS IT!!!) Last year's Goldman summer interns, who are more advanced than most banks' division heads?