The FBI’s sweeping investigation of insider trading is good for retail investors, Cramer said Monday, after a time when many Americans felt they couldn’t trust the stock market.
The Wall Street Journal broke news on Monday that the FBI had raided the Connecticut offices of Diamondback Capital Management and Level Global Investors, in addition to those of Loch Capital Management in Boston. The move was part of a broad insider-trading investigation in which still more raids are expected.
That’s most likely a welcome blow to a system that many retailer investors feel is corrupt. With quant funds using opaque algorithms to trade stocks, Wall Street seeming to have better access to essential investing information and the market appearing to be slanted in favor of the rich, average Americans had cashed out and left. But with today’s announcement, Cramer said, the government may have taken an important step “to bring people back.”