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Thug Rule in Washington

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Thug Rule in Washington

Bank of America CEO Ken Lewis has sparked controversy in his recent testimony to regulators. Lewis has revealed that he was threatened, by then-Treasury Secretary Hank Paulson and Chairman of the Fed Ben Bernanke, to buy Merrill Lynch, a company drowning in financial losses of billions of dollars. Lewis explained that Paulson and Bernanke presented […]

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The Profit Motive on Trial: A Look at the Famous Raymond Dirks Insider Trading Case

An article in the latest edition of the Undercurrent analyzes the moral arguments underlying insider trading laws. In this post, we recount a specific insider trading case from the early 1980s that revealed that it is indeed the profit motive that insider trading laws exist to penalize. Here’s the story: Ron Secrist, an employee at […]

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Inside Insider Trading

A scientist working for a pharmaceutical company learns that after decades of research and development, she has succeeded in creating a drug that fights cancer. She wants to buy as much stock in her company as she can afford, knowing that her efforts will cause the stock price to sky-rocket. She wants to take full […]