A Convicted Insider Trader Explains Why Lawyers Are Worse Tipsters Than Bankers

Insider traders  — successful ones — often have a range of source from which they obtain insider tips.

Raj Rajaratnam’s web was vast, and included traders, bankers and consultants.

Craig Drimal, a former Galleon trader who has pleaded guilty to insider trading, had a distinct opinion about the tipster hierarchy — some sources were better than others.

Lawyers, for example, are tantamount to janitors in Drimal’s opinion. But bankers — they’re the conductors. They’re the ones you want feeding you information.

According to wiretaps that were played in the Zvi Goffer insider trading trial yesterday, this is what Drimal told another then-Galleon trader, David Slaine, in 2007:


Don’t miss the story of Arlene Drimal: This is what it’s like to be the wife of an insider trader being targeted by the FBI >