A widespread insider-trading ring on Wall Street was cracked open by the FBI yesterday as 13 bankers and traders were indicted on multiple illegal-dealing and bribery charges.
The case appears to be one of the most pervasive Wall Street insider-trading rings since the mid1980s, said Linda Chatman Thomsen, the US Securities and Exchange Commission’s enforcement director.
Mitchell Guttenberg, a senior executive director in UBS, the Swiss banking group, and Randi Collatta, then a compliance officer for Morgan Stanley, were at the centre of an insider-trading ring that netted at least $15 million, the charges allege.
A broker with Bank of America Securities was also charged with taking cash kickbacks for allocating shares in initial public offerings to members of the alleged insider-dealing ring.
The charges