Galleon paid Goldman, Morgan millions for non-public info

As predicted, the Galleon insider trading case is metastasizing, spreading everywhere. My prediction. This will be bigger than Madoff, maybe even bigger than Enron.

If Galleon’s bankers were giving the firm extra info on other bank clients, then that sounds like frontrunning, a serious violation, and a serious reason not to have those banks as your prime brokerage, if you’re a hedge fund. If those banks were giving Galleon private info on the company, that’s also bad.