Lehman employee Matthew Devlin has been charged with insider trading, as he allegedly got tips on mergers from his wife, who works in PR.
1. Boring. After Bernie Madoff and Mark Cuban these garden variety insider trading cases won’t get anyone’s blood boiling.
2. How many more of these are we going to see? Consider that the collapse of Lehman and subsequent reorganization of assets has prompted a fresh examination of internal records and papers. We don’t know how this was discovered, but it stands to reason that as books are picked through all kinds of things will be discovered that don’t quite compute. As John Kenneth Galbraith said “Recessions catch what the auditors miss.” We’re guessing the auditors have missed a lot.