Tuesday, December 21, 2010

Additional Developments on Insider Trading Probe

I came across two articles from yesterday regarding the FBI's insider trading probe.

The first article, by Bloomberg News, recites the recent history of Taiwan and its place in the information chain for technology companies.  Taiwanese chipmaking foundries such as Taiwan Semiconductor and United Microelectronics manufacture chips for Apple, Dell, etc. and have proprietary insights in their businesses.  Since 2004, there have been cases of analysts (sell side and expert network)  disseminating insider information according to US standards.  However, in Taiwan, this is tolerated since information swapping is expected.

The second article, by Reuters, reiterates previous news regarding information gathering in the hedge fund world.  It relates how a well known mutual fund firm (in this case Wellington Management) also runs hedge funds and the conflicts that may occur between the fund types.

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