Wall Street Braces for More Insider-Trading Charges
Wall Street is bracing for another round of indictments as early as next week in a massive insider trading probe, people familiar with the matter told CNBC.
The move by Federal prosecutors may include a number of arrests, according to these people.
The indictments right at the height of the holiday season may prove a tactical advantage for prosecutors, sources in the legal community say.
On Tuesday, a Reuters report that Federal authorities were ramping up Wall Street insider trading probeshelped reverse a stock rally sparked by the tax-cut agreement between President Obama and Congressional Republicans.
U.S. authorities began subpoenaing big-name investors, including Wellington Management and SAC Capital Advisors, on Nov. 22, the same day Federal Bureau of Investigation agents raided hedge funds in three states.
Stocks had been trading higher after President Obama defended his tax cut compromise with Republicans in the face of strong Democratic opposition. Last week, federal prosecutors in Manhattan sent more subpoenas to several large hedge funds, said the sources, who asked not to be named because the investigation is not public.
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