Interesting thread and postings. Just wonder how it will all play out in the long run, just speculation mind you. 1...Assuming the couple did have inside info, how are they subject to US laws? 2...Since Merrill Lynch told on them, if that is true...then didn't Merrill Lynch violate it's fiduciary responsibility to their client? And isn't that responsibility above all else? 3...Knowing how close the Chinese people are, will this action ripple through the community and cause irrepairable harm to Merrill Lynch for years to come? Like every Chinese withdrawing their account from Merrill Lynch or other US owned firms. 4...Given that Beijing monitors the actions of the west and has been opening up their markets to western investment (banks, CC company, Investment firms)...will Beijing slow down these investments or increase its control over those firms? 5...Could this harm the west in other ways? China is a huge trading partner and vendor financier of US people (buying US treasuries). Could they start refusing to buy more and start selling? 6...Could Beijing freeze the assets of Merrill Lynch in China? China is very protective of its people and culture. I personally think this may be good for the SEC as far as their press is concerned, but it could definitely cause problems for the State Department.
My take on this story and the question of insider trading is that if the woman who went long the shares in this story is hot I would not mind being insider.
China is not going to let these 2 chumps stand in the way of their gold mine export biz with the US......
The media is treating this as if this was the ONLY act of insider trading in dow jones.. Even though the dollar amount was substantial, I am sure there are a lot of people on the street who are racking up a bunch of smaller gains... in a lot more insider "plays."
Wow what does the average CFA with a pulse make these days? I guess for these guys its never enough!!
You could be right...but one thing that must be considered is the difference in thinking. In the west we think about next month, quarter or year. In China they think of the next decade to century. Unless I am mistaken, the last time the west tried to get China to change its currency exchange rate they stated something to that point. China is currently developing its own internal markets for its products at which time it will become less dependent on exports. When that will happen..your guess is as good as mine.