The FBI Comes Calling

"Legal scholars have often debated it:
'When's the info too hot to have traded it?'
It's a thin, hazy line
That's hard to divine,
But it's here that I fear we've located it."    


The FBI has raided a trio of hedge funds, two of them run by alumni of Stephen A. Cohen's SAC Capital Advisors. The funds - Diamondback Capital Management LLC, Level Global Investors LP and Boston-based Loch Capital Management LLC - are known for their reliance on the expert research of analysts with deep industry knowledge, which the Bureau evidently perceives to have crossed the line into inside trading.