The FBI has raided three hedge funds, part of a widening investigation of suspicions of pervasive insider trading in the $1.7 trillion hedge fund industry.It's about time - this should have started happening long before there was even a hint of a Congressional bailout of Wall Street.
The funds include Diamondback Capital Management LLC and Level Global Investors LP, two Connecticut funds run by former managers of Steven Cohen's SAC Capital Advisors.
The third fund is Boston-based Loch Capital Management, a person familiar with the raid said. Loch has had close ties with a witness who pleaded guilty in a separate insider trading probe that centers on hedge fund Galleon Group.
The raids come as federal prosecutors prepare to unveil a series of new insider trading cases against hedge fund traders, consultants and Wall Street bankers, several lawyers familiar with the investigation said.
Look for the Rs in Congress to retaliate by cutting the budgets of the FBI and SEC next year...