The saying goes that communication is key. But lately, it may have been a little too key. Federal prosecutors in New York are investigating insider-trading on Wall Street. And complicating matters are the “new challenges in detecting, investigating and prosecuting abuses given the speed and complexity of the financial markets and a burst of new electronic media over which traders can communicate,” a Washington Post story reports.
It quotes Preet Bharara, U.S. attorney for the Southern District of New York, saying that the rise in financial newsletters, websites, blogs, and social media “has made it easier for those accused of insider trading to claim they acted on the basis of something they read.”
Media is involved in a lot of the angles on this one — according to the story, charges may be filed faster than expected following an article about the investigation appearing in Saturday’s Wall Street Journal.
The investigation is being conducted by the U.S. Attorney’s Office in Manhattan and the FBI, alongside a Securities and Exchange Commission civil probe. It has allegedly been going on for multiple years and includes Goldman Sachs bankers who may have shared confidential health care merger information with select investors.