Babylon’s burning, baby / Can’t you see? / Babylon’s burning / With anxiety
Quadrum Capital Management got subpoenaed as part of the Galleon insider trading investigation – and was immediately shut down by its head, Richard Grodin. Further, there are long-lasting ties between Quantum and SAC Capital Advisors, which is headed by very big dog Steve Cohen.
Did I mention one of the cooperating witnesses in the Galleon arrests used to work for Grodin? In my opinion, the Galleon case is going nuclear. Expect many former high-fliers to be brought low. And just how many hedge funds have been trading on insider knowledge? Inquiring minds want to know.
The comments at Zero Hedge generally think if Cohen was involved, that he’s too big to bring down. The collateral damage to the markets would be too severe so it would be politically untenable to indict him. Maybe. But if someone is looking at 40 years and can maybe bang that down to 15 if he becomes a cooperating witness, then… That’s how the code of silence on mafioso was broken. The prison terms for drugs were so severe that some who got indicted started talking. That was all it took. The wall of silence crumbled.