Gee Really?

NY Times DealBook Is running this story this afternoon.

Merrill Lynch Settles S.E.C. Fraud Case

http://dealbook.nytimes.com/2011/01/25/merrill-settles-s-e-c-fraud-case/

First of all, if there is a Chinese Wall between traders, bankers, and analysts on Wall Street then one must believe in the Easter Bunny and the Lochness Monster as well.

Take it form me. Coming from a former trader who used to work for three huge investment banks.

Wall Street investment houses and banks routinely front run client orders. This is not new and is quite honestly the cost of doing business on Wall Street. This is pure market making at its finest.

I find this one quote so fascinating and emblematic of the Wall Street culture.

"Merrill has since adopted “a number of policy changes,” Bill Halldin, a Bank of America spokesman, said in a statement. Mr. Halldin added that the policy changes, which include enhanced training and supervision, “address the S.E.C.’s concerns.”



You telling me that this wasn't a policy before?