One executive who dealt with Galleon said: “They wanted anything the public did not have. They got various pieces and put them together and that was their edge.”
"Anything the public did not have" eh?
I thought that trading on material non-public information was unlawful?
Who is alleged to have provided that information? Guess:
The latest development in the Galleon story makes Wall Street banks, like Morgan Stanley (MS) and Goldman Sachs (GS), look pretty bad.
Oh gee, why I am I not surprised?
When will the public - and the rest of the Hedge Fund community - say "enough!"
As noted in the linked article if Galleon was getting information on the order flow of other clients then there are a whole host of questions raised, both from a standpoint of potential legal exposure and from a standpoint of reputational and client risk.
After all, if you're a customer of these houses, do you want your order flow disclosed to those who pony up $250 million dollars for an "inside edge" - that is then used against you?
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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