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IBM, Intel Execs Arrested Over Insider Trading 198

Posted by ScuttleMonkey
from the things-are-tough-when-yer-rich dept.
An anonymous reader writes to share a report from The Register stating that executives from IBM and Intel have been arrested as a part of insider trading allegations. "According to a report from the Associated Press, six people were arrested today as part of an insider trading case, including Bob Moffat, senior vice president and general manager of IBM's Systems and Technology Group; Rajiv Goel, director of strategic investments at Intel Capital; Anil Kumar, a director at management consultancy McKinsey & Co; and Raj Rajaratnam, the founder of the $7bn Galleon Group hedge fund."
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IBM, Intel Execs Arrested Over Insider Trading

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  • Re:Well now... (Score:5, Insightful)

    by geekoid (135745) <`moc.oohay' `ta' `dnaltropnidad'> on Friday October 16, 2009 @05:38PM (#29773839) Homepage Journal

    No it's not interesting. It takes time to move through all the documents and prepare for the arrest. The word you were looking for is routine.

  • Re:Well now... (Score:2, Insightful)

    by riverat1 (1048260) on Friday October 16, 2009 @05:39PM (#29773845)

    Probably nobody cared to investigate it until last January or February.

  • Honestly though... (Score:4, Insightful)

    by Sibko (1036168) on Friday October 16, 2009 @05:44PM (#29773887)
    Business as usual for corporations. The only thing out of the ordinary here is that they got caught.
  • by spun (1352) <loverevolutionary&yahoo,com> on Friday October 16, 2009 @05:51PM (#29773965) Journal

    It's called, 'getting caught.' You see, when you get caught, everyone else in business has to pretend they don't do it, and that they are shocked! Shocked and appalled at the bad apples ruining the barrel. By 'bad apples,' they mean, 'people just like me except they got caught' and by 'ruining the barrel,' they mean, 'drawing the attention of the peons to our utter corruption.'

  • Re:No bad or worse (Score:2, Insightful)

    by Jeremiah Cornelius (137) * on Friday October 16, 2009 @06:00PM (#29774043) Homepage Journal

    OOOHHH! HATE SPEECH!

    We have laws to deal with those who think as you do! Never forget: Corporations are persons [wikipedia.org] and have all the rights of personhood, as enshrined (entombed?) in law. You are a hate-criminal, [wikipedia.org] and probably therefore a violent extremist. [wikipedia.org]

  • by frank_adrian314159 (469671) on Friday October 16, 2009 @06:22PM (#29774187) Homepage

    Will somebody please flush the elitist toilet?

    Elitist is a loaded term used by useful idiots, seeking to lump together people of above-average intelligence, (supposedly) more highly refined culture, and (very, very secondarily) the wealthy into a political target group that can be exploited by the right wing populist. Unfortunately, this normally results in the demise of smart people (who cannot defend themselves), while leaving in place the wealthy (who can). In doing so, the right wing defang a properly targeted populist revolt that might actually change the system, which is based on economic class/power differences rather than on cultural/IQ differences. Doing this ensures that the fundamental class system, determined by power structures dictated by economics and wealth are never changed, leaving the idiots in the lower class forever subservient. Wash, repeat.

    So have a ball flushing your elitist toilet and wave back from the sewer outlet as you try to figure out why that doesn't change a damn thing.

  • by Anonymous Coward on Friday October 16, 2009 @06:41PM (#29774329)

    No, elitist is a term used to refer to people who think that due to to talent, money, or power, they possess a higher moral value than people without those talents/money/power/&c. A low-level government employee who thinks he shouldn't have to pay parking tickets is an elitist, a president who thinks he's got a moral obligation to take a bullet for a homeless man isn't. It's about perception, not position.

  • Re:Well now... (Score:5, Insightful)

    by maharb (1534501) on Friday October 16, 2009 @06:54PM (#29774425)

    There are victims of this crime. Those who bought or didn't buy shares at the 'wrong' price because they didn't have the information that the insiders did. Insider trading causes the honest people to A) lose money or B) not make as much money. So there are victims and injuries.

    The drug thing is a whole different debate that I do not wish to even start with.

  • Re:Well now... (Score:5, Insightful)

    by The Empiricist (854346) * on Friday October 16, 2009 @06:56PM (#29774433)

    Who else here thinks both this and non-violent drug use should be NON CRIMES because in either case there is no victim and no injury?

    You think that there are no victims and no injuries caused by insider trading? How about the people at the other end of those trades? What about the former shareholder who sold stock early, not having had access to information showing that the stock was undervalued? Or how about the new shareholder who did not have the information to know that the stock was overvalued? Those who have access to proprietary information, or who are in a position to manipulate the value of an organization, have a fiduciary duty of loyalty to shareholders. Insider trading violates that duty and is a subtle, but very real, method of stealing from them. For another perspective, click here [gbcnv.edu].

  • by Runaway1956 (1322357) * on Friday October 16, 2009 @07:08PM (#29774491) Homepage Journal

    It's really a tossup. +5 insightful, or +5 cynical. Ironic that cynicism and insight are so much alike, isn't it?

  • Re:Well now... (Score:4, Insightful)

    by tsotha (720379) on Friday October 16, 2009 @07:10PM (#29774505)

    Nope. Most people don't realize it, but financial crimes in the US are punished pretty severely. Enron's Skilling got 24 years in jail for conspiracy to defraud investors. You can get less than that for killing somebody. Martha Stewart got six months for lying to an investigator (while she wasn't under oath) about something that wasn't a crime. As with drunk driving for awhile people have this idea the penalties are light, but in the meantime legislators are reacting to public anger and jacking up the sentences. It takes awhile for reality to sink in to the public consciousness. From here [nytimes.com]:

    "You can certainly make the case that things have gotten too harsh," said Samuel W. Buell, a former Enron prosecutor who now teaches law at Washington University in St. Louis. "But the reason why things have gotten so harsh is we went through these years when sentences were too light. Maybe we need a correction in the other direction to get a happy medium."

    I think the drug laws are pretty stupid, too, but where I live first time offenders never get jail time for possession. You can usually avoid jail on the second conviction as well if you don't have a bunch of other stuff on your record. By the third one, well, you're an idiot who's going to jail for being an idiot. But only for a few months.

  • by phantomcircuit (938963) on Friday October 16, 2009 @07:21PM (#29774565) Homepage

    What you fail to understand is that it would not be the hedge fund managers who were involved in insider trading who would be shot in the public stadium, no they have far too much power and influence (read as money).

    It would be the drug dealers and other relatively insignificant criminals who would find themselves in a stadium preparing to be shot on national television.

  • by teknosapien (1012209) <teknosapien@gmail.com> on Friday October 16, 2009 @07:42PM (#29774705) Journal
    Insider trading is as we already know BAD (Ivan the Bad http://eightiesclub.tripod.com/id316.htm [tripod.com]) on many levels -- the biggest problem is that the rules are played lose and free with out any thought of getting caught. so maybe more regulation isn't the answer but harsher penalties are if you stand to lose everything then maybe you will follow the rules Personally I think All assets should be taken and what ever doesn't get applied to payback should go to say funding health care or some social issue of the times. I mean that makes more sense than the current war on drugs.
  • by sitarlo (792966) on Friday October 16, 2009 @07:45PM (#29774733)
    You know, I don't have any ill-will towards liberal thinking people at all. I'm just tired of people wearing it as some kind of "I'm better than thou" badge. Historically, it's dangerous to identify one's self with a single political philosophy. It stinks of brainwashing and indoctrination. Common sense should be the middle ground where people unite, but common sense is not so common.
  • by ceoyoyo (59147) on Friday October 16, 2009 @07:53PM (#29774791)

    "The Chinese method for dealing with political corruption is better, final, and satisfies the public right to vengeance against those who betray them."

    And a dozen lucky people on various transplant lists get new organs.

  • by Wansu (846) on Friday October 16, 2009 @07:58PM (#29774809)

    they can arrest everyone who has ever worked for Goldman Sachs or any of those other bankster firms who are now heaping lavish bonuses on their people, paid for by taxpayers who are becoming unemployed and homeless.

    These IBM/intel guys are small potatoes. Make Geithner and Paulson do the perp walk.

  • by Spy Handler (822350) on Saturday October 17, 2009 @12:51AM (#29775883) Homepage Journal
    I also recommend reading How the servant became the predator [newdeal20.org]: analysis on the financial sector and how it's damaging the real economy.

    This part is especially worthy of note:

    "The U.S. real economy suffers from critical shortages of employees with strong mathematical, engineering, and scientific backgrounds. Graduates in these three fields all too frequently choose careers in finance rather than the real economy because the financial sector provides far greater executive compensation. Individuals with these quantitative backgrounds work overwhelmingly in devising the kinds of financial models that were important contributors to the financial crisis. We take people that could be conducting the research & development work essential to the success of our real economy (including its success in becoming sustainable) and put them instead in financial sector activities where, because of that sector’s perverse incentives, they further damage both the financial sector and the real economy."
  • Re:Well now... (Score:2, Insightful)

    by Profane MuthaFucka (574406) <busheatskok@gmail.com> on Sunday October 18, 2009 @02:19PM (#29786081) Homepage Journal

    Blah blah blah. Where did I praise Clinton? Where?

    Quote me.

    The days when you assholes like you can get away with that shit are long over. We've got the Google now. Anybody can just go find the truth. You have no excuse.

    Put on some pants, you freak.

Lo! Men have become the tool of their tools. -- Henry David Thoreau

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