{"id":347,"date":"2011-12-02T08:40:10","date_gmt":"2011-12-02T16:40:10","guid":{"rendered":"http:\/\/www.aikapa.com\/Financial_Bites\/?p=347"},"modified":"2017-09-27T15:02:44","modified_gmt":"2017-09-27T22:02:44","slug":"how-could-insider-information-by-hank-paulson-be-legal","status":"publish","type":"post","link":"https:\/\/www.aikapa.com\/Financial_Bites\/?p=347","title":{"rendered":"How could insider information by Hank Paulson be legal?"},"content":{"rendered":"<p><em>Information in this post is from <strong>Taken to Task<\/strong> on 12\/2\/11: <span style=\"color: #0000ff;\">http:\/\/finance.yahoo.com\/blogs\/daily-ticker\/taken-task-capt-cronyism-hank-paulson-124007702.html<\/span><br \/>\n<\/em><\/p>\n<p>How could Treasury secretary (Hank Paulson) providing insider information to Hedge fund managers be legal?<\/p>\n<p>The story goes that in July 2008, then Treasury Secretary Hank Paulson tipped off a small group of hedge fund managers to the government&#8217;s plan to put Fannie Mae and Freddie Mac into conservatorship. When the government did just that in early September 2008, anyone hoping for a bailout of Freddie and Fannie (or just long the GSEs) got wiped out&#8230;while anyone short the stock made a boatload.<\/p>\n<p>How could this not be legal? Paulson&#8217;s behavior is a dereliction of duty, violation of the public trust and for undermining the American taxpayer he swore to support.<\/p>\n<p>According to the reports Paulson&#8217;s meeting and alleged comments did not violate insider trading laws; technically it was legal.\u00a0 Then what do the insider trading laws protect us against? According to the rules insider trading by sitting members of Congress is wrong and offensive, Paulson&#8217;s gift to his hedge fund buddies, where he was CEO prior to becoming Treasury Secretary &#8212; is so grotesque and wrong it boggles the mind; more especially considering that Paulson told the press a different story than he told the money managers.<\/p>\n<p>Why are the Justice Department, the SEC or any other federal prosecutor not investigating Paulson&#8217;s actions regarding Fannie and Freddie &#8212; and <em>why don&#8217;t they shed light on <\/em>his meeting with hedge fund managers.\u00a0 Or will the SEC once again allow all to pay a small fine and claim no fault?<\/p>\n<p>Edi Alvarez, CFP<sup>\u00ae<br \/>\n<\/sup>BS, BEd, MS<\/p>\n<p><a href=\"http:\/\/www.aikapa.com\/\"><strong>www.aikapa.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Information in this post is from Taken to Task on 12\/2\/11: http:\/\/finance.yahoo.com\/blogs\/daily-ticker\/taken-task-capt-cronyism-hank-paulson-124007702.html How could Treasury secretary (Hank Paulson) providing insider information to Hedge fund managers be legal? The story goes that in July 2008, then Treasury Secretary Hank Paulson tipped &hellip; <a href=\"https:\/\/www.aikapa.com\/Financial_Bites\/?p=347\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[120,114],"class_list":["post-347","post","type-post","status-publish","format-standard","hentry","category-violations-warnings","tag-insider-trading","tag-sec"],"_links":{"self":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts\/347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=347"}],"version-history":[{"count":3,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts\/347\/revisions"}],"predecessor-version":[{"id":859,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=\/wp\/v2\/posts\/347\/revisions\/859"}],"wp:attachment":[{"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aikapa.com\/Financial_Bites\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}