The cost of insider trading is well known on Wall Street. Shuttered firms, frightened portfolio managers, costly lawsuits and expensive compliance. Now, according to the Ny Times’ Dealbook the industry can add insurance to the list.
Rates are up 5 to 10 percent this year for hedge funds insuring themselves against fraud or insider trading litigation, amid the government’s widespread crackdown, according to an industry specialist, the SKCG Group. The insurance, which covers the cost of litigation and covers losses from any investor lawsuits, is even higher for troubled firms that find themselves the subject of critical media coverage or investor redemptions, SKCG said….
Find out more at http://dealbook.nytimes.com/2012/03/13/the-high-cost-of-insider-trading/
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