Widening the insider-trading probe involving Galleon hedge-fund founder Raj Rajaratnam, federal prosecutors reportedly now are examining if a Goldman Sachs board member gave inside information about the Wall Street firm during the height of the financial crisis. Law Professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture at a Crossroad,” says Wall Street players need inside information to do their jobs, but they must not trade on it.
“Pay that person more in salary and perhaps bonuses, but allow no trading or any financial transaction. And if culture does not dictate such an abstention, the law should impose it.”
Contact Tamar Frankel, 617-353-3773, firstname.lastname@example.org