Sen. Lieberman Caught Passing Inside Info To Hedge Funds
Seeking advance word of government decisions is part of a growing, lucrative—and legal— practice in Washington that employs a network of brokers, lobbyists and political insiders who arrange private meetings between hedge funds and officials, including lawmakers and their aides.
With markets moving sharply on actions in Washington, hedge funds and other big Wall Street players are willing to pay for access. News tips, combined with data and analysis, help steer firms to profitable investment decisions.
The meetings can be fishing expeditions, with clients sometimes leaving empty-handed. But if there’s news pending, these hedge funds are often among the first in line to hear.
New York-based brokerage firm JNK Securities has emerged as one of the most aggressive of the dozens of companies that escort clients around Capitol Hill. JNK Securities arranged the Dec. 8, 2009 health-care briefing and more than 200 similar sessions over the past three years.