GKM

Are Canadian Regulators Ignoring Fraud?

While I agree with the general premise of the article, I can't agree that US regulators/law enforcement are really digging their teeth into the whole of the corruption inherent in that marketplace. Perhaps its just the amount of the malfeasance that goes on that they have to limit their investigations to the highest profile cases. However, there is further evidence to indicate illegal activities that goes unnoticed/unpunished.

Case in point - the trading around Countrywide shares right before the BOA deal was announced. It was pretty obvious that someone with insider knowledge stepped in and bought a bunch of stock and $7 calls (while selling the higher calls). Do you suppose that there will ever be charges laid in that case? This kind of activity goes on on a regular basis but I suppose it too much small-fry for the regulators to even sniff at.