Prohibiting people from profiting from their access to information makes the economy less fair and less free.
Insider trading leads the news again, casting a cloud over Steven Cohen’s SAC Capital Advisors $14 billion hedge fund.
The SEC charged Mathew Martoma, who used to manage a SAC Capital division, with using inside information about tests on an Alzheimer’s drug to trade stock of the company working on it.
The media love this stuff. I imagine reporters sitting around saying: “The SEC finally will punish greedy Wall Street! These tycoons rig the game—cheating is how they acquire $14 billion—and now noble government prosecutors will bring justice.”
But this is nonsense. Government prosecutors are as ruthless and greedy as anyone.
CONTINUED at Reason. Written by John Stossel.
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