Rajaratnam and 75 Other Reasons Hedge Funds Are Scared Straight
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All those insider-trading convictions gave Wall Street chills
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Training sessions include photos of white-collar perp walks
The ghost of Raj Rajaratnam still haunts hedge funds. Some make employees sign pledges that they’ve not acted on illicit tips, others snoop on their traders with keystroke-reading software. At the compliance meetings everybody has these days, prison isn’t an off-the-wall topic.
The illegal-trading probes that netted crooks at more than a dozen funds may have reached an unofficial finale with a whimper last week — a deal allowing SAC Capital Advisors LLC’s Steven A. Cohen to return to the industry in two years — but the chill from the fates of Rajaratnam and the 75 others convicted hasn’t faded. The legacy of the crackdown might be a healthy suspicion that Big Brother really is watching…
Rajaratnam and 75 Other Reasons Hedge Funds Are Scared Straight
