New York Attorney General Eric Schneiderman is pushing for better cooperation with the financial industry and federal lawmakers to combat emerging insider-trading threats. While he commended competition among financial services firms, he also said competition has to be guided by an element of fairness, and regulators need to protect the market.
The NYAG has already launched investigations into emerging types of insider trading like the possibility that select investors may have early access to analyst assessments of publicly traded companies – assessments that have the potential to impact stock prices. His office will review these arrangements. The NYAG also lamented on the increased gridlock in Washington, making it difficult to combat insider trading with a combination of state and federal resources.
We will monitor this situation to see if there is, in fact, increased cooperation.