Tuesday, March 1, 2011

How Much is Enough?

How much is enough?
An ex-board member of Goldman Sachs was present during a teleconference meeting in which Goldman decided to invest $5B into Berkshire Hathaway.  The board member calls his friend right after the meeting, allegedly gives him the information, the friend buys 175,000 shares of Goldman stock right before the closing bell.  Next day the friend sells the shares for a tidy profit which turned out to be nearly $1million dollars.
Not only does the board member sit on the board of Goldman Sachs but has also sat on the boards of Proctor and Gamble and AMR.
Apparently that was only the tip of the iceberg; the SEC alleges other instances with similar profits made totally somewhere close to $1B in profits due to insider trading.  How much is enough? 

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