As CNBC.com reported earlier today, the U.S. Securities and Exchange Commission is investigating whether or not some Wall Street banks are leaking privy information from one client to gain favor with another. But is this illegal? Depends upon whom you talk to.
Apparently the SEC received complaints from mutual funds that claimed stock prices have been moving suspiciously ahead of their big orders. There is speculation that banks use this information to attract hedge funds, because of the big business that comes with executing their massive trades.
Today, the New York Times namedMerrill Lynch , Morgan Stanley , UBS and Deutsche Bank as the banks under investigation.