The truth about insider trading. @turneyduff #HFT #InsiderTrading

I wonder if SAC Capital’s Steve Cohen sent Michael Lewis a thank-you note. Lately, it seems like all anyone can talk about is high-frequency tradingand the new book “Flash Boys.” But long before there was HFT, there was insider trading.

There’s a common perception (fueled by a rabid media) that insider trading is equivalent to getting Wednesday’s winning lottery numbers on Tuesday. Sometimes it is — but not often. Don’t get me wrong, if Rajat Gupta called me at 3:58 p.m. to say Warren Buffett is going to infuse Goldman Sachswith a $5 billion boost in the middle of a financial crisis, that would be like LeBron James stealing the ball and heading down court for a SportsCenter highlight.

http://www.cnbc.com/id/101586358

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