Markets are infested with Insider Trading

[nitro]

Here's an inside look at SEC staff stock trading

A new study suggests that some SEC employees engaged in insider trading in shares of companies that were later the subject of agency scrutiny, The Washington Post reports.


http://www.cnbc.com/id/101455561

 

[ktm]

Not really.

Out of 56 companies being reviewed, agency employees sold SIX before investigations commenced. How many did they buy? Looks like ZERO.

Why did they sell them? From the article....


"Agency spokesman John Nester told the Post that staff members must sell any stock holdings of a company before they can work on issues involving the firm. "Each of the transactions was individually reviewed and approved in advance by the Ethics office," he said."


TRADING would be buying and selling. No story here, but thanks for the teaser!

 

[MoreLeverage]

Not really.

Out of 56 companies being reviewed, agency employees sold SIX before investigations commenced. How many did they buy? Looks like ZERO.

Why did they sell them? From the article....


"Agency spokesman John Nester told the Post that staff members must sell any stock holdings of a company before they can work on issues involving the firm. "Each of the transactions was individually reviewed and approved in advance by the Ethics office," he said."


TRADING would be buying and selling. No story here, but thanks for the teaser!

Read the details from the paper, not the media summary:

http://www.elitetrader.com/vb/showthread.php?t=282362

The academics found numerous examples of blatant violations of the SEC trading policies, as well as good statistical evidence that insider trading was going on despite the "promised" reforms from the 2009 SEC insider trading scandal. 9% alpha on their US stock picks and -4% alpha in anything else they touch? You be the judge.

 

[athlonmank8]

If you're not inside. You are outside