|Perp walk for Raj Rajaratnam|
How could anybody be breathless about the Manhattan U.S. Attorney's Office measly $20 million bust of hedge-funder Raj Rajaratnam and cohorts for allegedly illegal inside trading?
Yet the Wall Street Journal's follow story this morning on Friday's bust of the pirates associated with Rajaratnam's aptly named Galleon treats this as if it were a real indication that Wall Street's goniffs are being tracked down.
New York Attorney General Andy Cuomo is the prosecutor who's doing the hard work of hounding the culprits of last fall's crash. U.S. Attorney Preet Bharara, Barack Obama's guy in the crucial Southern District prosecutor's office, wants us to salute him for the Galleon case?
Bloomberg News notes that this is an indication that prosecutors will use wiretaps in unraveling future Street crime. Yeah, that's comforting.
And the NYT insists that prosecutors "intended [the] case as a shot across the bow of hedge funds." What total bullshit that is. Yeah, I'll bet hedge fund moguls like John Paulson are really shaking in their boots that people made $20 million from this alleged wrongdoing and got caught.
The WSJ story notes Galleon "pushed its traders so hard to get market-moving information that those who failed were frequently berated or pushed out."
You don't say! WTF, this unpleasant behavior is SOP on the Street and in thousands of other businesses.
This morning's NYT story notes that the wiretaps leading to the charges against the Sri Lankan dude were full of "a fair number of four-letter swear words." Fucking unusual, eh?
I like how Bharara says "this case should serve as a wake-up call for Wall Street." Not likely. This may be a big insider-trading case (but it's not really, based on what we know so far), but it's nothing compared with last fall's meltdown — and it has nothing to do with last fall's meltdown. We're still waiting for some federal government action on that.
One item of political interest: Indian-born Preet Bharara's first highly publicized bust is of a Sri Lankan who supposedly contributed money to the Tamil rebels, the Liberation Tigers of Tamil Eelam. They're the dudes who assassinated Indian pol Rajiv Gandhi.
This case against Rajaratnam by an Obama appointee should help the Democrats among the steadily more influential Indian-American population, especially because of Rajaratnam's supposed support of the Tamil terrorists.
Good for a snicker is the NYT story last August about Bharara, particularly the headline: "For Manhattan's Next U.S. Attorney, Politics and Prosecution Don't Mix." Yeah, right. Except that Bharara was chief counsel for Demo kingpin senator Chuck Schumer.