Eric Zuesse<\/p>\n
On December 10th, Wall Street\u2019s federal appeals court, the 2nd Circuit Court of Appeals, ruled that if inside information about what is going to happen to a corporation is taken advantage of by an investor, it\u2019s okay, so long as the source of the inside-tip isn\u2019t directly paid for passing it along.<\/a><\/p>\n In other words, if you have friends who have inside information that they received from their friends, they are free to pass it along to you, and you are free to pass inside information that you possess along to them to pass along to others, but neither of you is permitted to pay the other for any inside tip \u2013 the information can legally be acted on only if the tipper is not paid for the tip.<\/p>\n The three-judge panel consisted entirely of Republican-appointed judges. Their ruling, in the case, U.S. v. Newman, 2nd U.S. Circuit Court of Appeals, No. 13-1837<\/em>, provides insiders a way to sure-thing \u2018investing\u2019 in which groups of friends who trust each other and include high corporate executives and\/or investment professionals such as stockbrokers, can legally be virtually certain that their \u2018investing\u2019 will be profitable for them and unprofitable for the individuals they\u2019re trading against (either selling to or buying from). If you receive advance-word of negative information and sell to someone who doesn\u2019t, or advance-word of favorable information and buy from someone who doesn\u2019t, then that\u2019s okay, according to the three Republican judges, but only if the original passer of the tip isn\u2019t being paid for passing it.<\/p>\n In other words, trading favors is okay, even if it provides unfair advantage against outside investors.<\/p>\n This ruling establishes two classes of investors: one is insiders who trade favors but don\u2019t pay each other for providing inside tips, they instead do it like members of a club; the other is suckers who rely on the fairness of America\u2019s investment markets and on the Government\u2019s enforcement against corruption of the investment markets.<\/p>\n Here is the Court\u2019s ruling<\/a>.<\/p>\n Here is a detailed analysis of the ruling, by the great white-collar criminologist, Bill Black<\/a>, who as a prosecutor of corruption sent many corrupt executives to prison, when America\u2019s Government wasn\u2019t nearly as corrupt as it has since become.<\/p>\n ———-<\/p>\n Investigative historian Eric Zuesse is the author, most recently, of They\u2019re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010<\/em><\/a>,<\/em> and of \u00a0CHRIST\u2019S VENTRILOQUISTS: The Event that Created Christianity<\/a>.<\/em><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Eric Zuesse On December 10th, Wall Street\u2019s federal appeals court, the 2nd Circuit Court of Appeals, ruled that if inside information about what is going to happen to a corporation is taken advantage of by an investor, it\u2019s okay, so long as the source of the inside-tip isn\u2019t directly paid for passing it along. In […]<\/p>\n","protected":false},"author":1254,"featured_media":139531,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[461],"tags":[30,551,96,49,531],"class_list":{"0":"post-142635","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-editorials","8":"tag-big-brother","9":"tag-corruption","10":"tag-cover-up","11":"tag-usa-news","12":"tag-wall-street"},"_links":{"self":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/142635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1254"}],"replies":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=142635"}],"version-history":[{"count":0,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/142635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media\/139531"}],"wp:attachment":[{"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=142635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=142635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=142635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}