Summary of Circle of Friends

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

Circle of Friends book summary
Start getting smarter:
or see our plans

Rating

8 Overall

8 Importance

8 Innovation

9 Style


Recommendation

In 2007, “Perfect Hedge” – one of American history’s most extensive insider-trading probes – investigated a “circle of friends” based in some of the most respected hedge funds, investment banks and Fortune 500 companies. In this compelling tale of intrigue, deception and scandal, financial journalist Charles Gasparino reveals how prosecutors uncovered an ecosystem of corruption. But Gasparino also raises important questions about how much harm insider trading really inflicts on individual investors, compared to other types of financial fraud. While noting that the book dates to 2013, so some factors may have changed, getAbstract recommends this rigorously reported narrative to professional and “little-guy” investors alike for its dissection of the inner workings of inside-information cliques.

In this summary, you will learn

  • Why insider trading is a crime in the United States;
  • How the US government prosecuted an extensive insider trading ring; and
  • Why some observers question the criminality of insider trading, compared to other forms of financial market fraud.
 

About the Author

Charles Gasparino is a correspondent for the Fox Business Network and the Fox News Channel, and a columnist for The New York Post and other news outlets.

 

Summary

“Perfect Hedge”

In 2007, long-time Wall Street trader David Slaine made a calculated decision to cooperate with federal authorities in a government probe of insider trading at major corporations and Wall Street firms. In so doing, Slaine would shield himself from the most bruising charges and potentially long jail sentences associated with insider trading. The government’s investigation, called Perfect Hedge, focused on two industry leaders: hedge fund managers Raj Rajaratnam of Galleon Group and ultimately Steve Cohen of SAC Capital. Slaine provided evidence of an enormous insider trading conspiracy that eventually yielded more than 70 convictions.


More on this topic

Customers who read this summary also read

Penny Stock Chronicles
Penny Stock Chronicles
8
The Inside Story of BitTorrent’s Bizarre Collapse
The Inside Story of BitTorrent’s Bizarre Collapse
7
Inside Google’s Internet Justice League and Its AI-Powered War on Trolls
Inside Google’s Internet Justice League and Its AI-Powered War on Trolls
8
Secrets of a Global Super Court
Secrets of a Global Super Court
9
The Fall of China’s Hedge-Fund King
The Fall of China’s Hedge-Fund King
7
Biggest Financial Regulation Stories of 2017, and What to Watch in 2018
Biggest Financial Regulation Stories of 2017, and What to Watch in 2018
8

Related Channels

Comment on this summary