|Wall Street's secretive 'expert networks'|
|The Guardian, Simon Goodley, 04/03/2011 (traduire en Français )|
The trial of Galleon hedge fund founder Raj Rajaratnam on insider-dealing charges has exposed a little-known world
It is July 21, 2009, and one Wall Street hedge fund manager has a sudden change of heart. Having bought more than 1m shares in the giant technology company AMD over the past two weeks, the trader loses confidence in his bet and swiftly dumps a third of his stake.
The volte-face immediately looks shrewd. As the markets close that evening, AMD makes a quarterly earnings announcement admitting to a $330m (£201m) loss and a 13% drop in revenues. One day later, AMD shares slump 13%, meaning the hedge fund manager had avoided losses of at least $140,355.
That case is now part of the huge insider-dealing inquiry fixating Wall Street, which became even more sensational last week when the US securities and exchange commission filed civil charges against Rajat Gupta, the former head of the management consulting firm McKinsey.
Last week's announcement that Rajat Gupta, the former head of management consulting group McKinsey, was among those charged in the securities and exchange commission's long-running insider dealing investigation propelled the inquiry's profile to new heights.
Gupta, who denies any wrongdoing, is a former Goldman Sachs and Procter & Gamble director as well as being a one-time adviser to the United Nations and the biggest name to be directly dragged into the investigation thus far.