A study of the stock trading behavior of SEC employees
finds them to be really good at this stock market stuff. Remember, these
are the guys policing the behavior of the public markets, the heroes of
the Madoff investigation. A snippet from the paper:
"These
results suggest that SEC employees potentially trade profitably under
the new rules, and that at least some of their profits potentially stem
from trading ahead of costly SEC sanctions and on privileged non-public
information," write Shivaram Rajgopal, a professor of accounting at Emory University, and Roger M.
White, a doctoral student in accounting at Georgia State University.
"In short, it appears that SEC employees continue to take advantage of
non-public information to trade profitably in stocks under their
regulatory purview."
This from a government that has the audacity to lecture us on "fairness."
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