Financial Times FT.com

Hedge funds fear wider crackdown

By Joanna Chung in New York

Published: October 20 2009 03:00 | Last updated: October 20 2009 03:00

What prosecutors call the biggest insider trading case involving hedge funds is likely to implicate far more people than the six individuals charged on Friday.

Raj Rajaratnam, founder of Galleon hedge fund, and present and former executives of Bear Stearns, IBM, Intel and McKinsey were accused of either passing on or trading ahead of earnings announcements, acquisitions and joint venture deals involving prominent companies.

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