hot tips sink ships

Merrill Lynch, Morgan Stanley, UBS and Deutsche Bank are among the major Wall Street banks that were sent letters last month by the Securities and Exchange Commission as part of a broad examination into whether bank employees are leaking information about big trades to favored clients, The New York Times reported.Trading ahead of client orders, or front-running, has long been an issue on Wall Street. But the latest S.E.C. investigation appears to have a new twist: Rather than examine whether a bank is trading ahead of its own client by using knowledge of the customer's trade, the scope of the investigation will allow regulators to see if banks tip their valued customers who then go trade at another bank, making the paper trail harder to detect. Go to Article from The New York Times>>