The Supreme Court of the United States just recently, correctly decided not to review the US vs Newman Insider Trading case. In response to this decision, there was a well written commentary on the decision here on Bloomberg by Matthew Levine.
Given my interest at the near 2 year anniversary of my destroying the SEC in the ridiculous case they brought against me, (you can read more here and here ) , I chose to send the author an email with some of the pieces I thought were missing (some edits from that email have been made)
It covers what I think is absolutely missing when it comes to Insider Trading and why the failings of regulators have far greater consequences on our economy then we realize.
Your article was very fair. But it missed the ultimate point. If you want to make it fair and equal for everyone, all regulators have to do is 2 things
Lawbreakers who have broken the law should know they have broken the law. I doubt that people at the end of a tippee chain know they have broken any laws or even have considered it. How could they ?
As a result they miss the big events and their failures lead to broad regulation that has cut the number of public companies in half and led to a serious distrust of financial markets. It’s not insider trading that has created distrust. It’s the failure of regulators to miss the macro events
All of the above leads to a simple question. Do you think the markets are safer today than they were 20 years ago ?