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IBM, Intel Execs Arrested Over Insider Trading
An anonymous reader writes to share a report from The Register stating that executives from IBM and Intel have been arrested as a part of insider trading allegations. "According to a report from the Associated Press, six people were arrested today as part of an insider trading case, including Bob Moffat, senior vice president and general manager of IBM's Systems and Technology Group; Rajiv Goel, director of strategic investments at Intel Capital; Anil Kumar, a director at management consultancy McKinsey & Co; and Raj Rajaratnam, the founder of the $7bn Galleon Group hedge fund."
No it's not interesting. It takes time to move through all the documents and prepare for the arrest. The word you were looking for is routine.
The Kruger Dunning explains most post on
It's called, 'getting caught.' You see, when you get caught, everyone else in business has to pretend they don't do it, and that they are shocked! Shocked and appalled at the bad apples ruining the barrel. By 'bad apples,' they mean, 'people just like me except they got caught' and by 'ruining the barrel,' they mean, 'drawing the attention of the peons to our utter corruption.'
- None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
Will somebody please flush the elitist toilet?
Elitist is a loaded term used by useful idiots, seeking to lump together people of above-average intelligence, (supposedly) more highly refined culture, and (very, very secondarily) the wealthy into a political target group that can be exploited by the right wing populist. Unfortunately, this normally results in the demise of smart people (who cannot defend themselves), while leaving in place the wealthy (who can). In doing so, the right wing defang a properly targeted populist revolt that might actually change the system, which is based on economic class/power differences rather than on cultural/IQ differences. Doing this ensures that the fundamental class system, determined by power structures dictated by economics and wealth are never changed, leaving the idiots in the lower class forever subservient. Wash, repeat.
So have a ball flushing your elitist toilet and wave back from the sewer outlet as you try to figure out why that doesn't change a damn thing.
That is all.
There are victims of this crime. Those who bought or didn't buy shares at the 'wrong' price because they didn't have the information that the insiders did. Insider trading causes the honest people to A) lose money or B) not make as much money. So there are victims and injuries.
The drug thing is a whole different debate that I do not wish to even start with.
You think that there are no victims and no injuries caused by insider trading? How about the people at the other end of those trades? What about the former shareholder who sold stock early, not having had access to information showing that the stock was undervalued? Or how about the new shareholder who did not have the information to know that the stock was overvalued? Those who have access to proprietary information, or who are in a position to manipulate the value of an organization, have a fiduciary duty of loyalty to shareholders. Insider trading violates that duty and is a subtle, but very real, method of stealing from them. For another perspective, click here.
I also recommend reading How the servant became the predator: analysis on the financial sector and how it's damaging the real economy.
This part is especially worthy of note:
"The U.S. real economy suffers from critical shortages of employees with strong mathematical, engineering, and scientific backgrounds. Graduates in these three fields all too frequently choose careers in finance rather than the real economy because the financial sector provides far greater executive compensation. Individuals with these quantitative backgrounds work overwhelmingly in devising the kinds of financial models that were important contributors to the financial crisis. We take people that could be conducting the research & development work essential to the success of our real economy (including its success in becoming sustainable) and put them instead in financial sector activities where, because of that sector’s perverse incentives, they further damage both the financial sector and the real economy."