U.S. corporate crisis bailouts may prove bonanza for insider trading, new study warns – Reuters

The research, from scholars at the University of Pennsylvania’s Wharton School, Stanford University, University of Cambridge and IESE Business School, found insider trading profitability jumped dramatically during the 2007-2009 global financial crisis and subsequent government bailout.“

Anytime the government picks winner and losers, there is a greater opportunity for insider trading by connected individuals,” said Daniel Taylor, an associate professor at University of Pennsylvania’s Wharton School and one of the authors of the report.

via U.S. corporate crisis bailouts may prove bonanza for insider trading, new study warns – Reuters.