Insider-trading case link to FTN Equity’s demise?

By Geert De Lombaerde Posted on February 4, 2010 at 8:25 am

The Journal has a good read (behind its pay wall) connecting the Galleon Group insider-trading investigation to the Monday closing of FTN Equity Capital Markets. Wall Street trader Danielle Chiesi, who was arrested in October in connection with the Galleon case, is a former fiancée of William Bischoff, the ex-CEO of the research unit of First Horizon. After that news broke, FTN sidelined Bischoff as it conducted an internal investigation that eventually completely cleared Bischoff. But by then, the damage to FTN’s sale prospects had been done: More than a quarter of its analysts and brokers had walked and year-to-date revenues were off more than 60 percent, Bischoff told the Journal.

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Tags: equity research, First Horizon National Corp., FTN Equity Capital Markets Corp., Galleon Group LLC, hedge funds, insider trades, Point Capital Partners LLC, Raj Rajaratnam  

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