In 2006: "GLG Partners, Europe’s third-biggest hedge fund with $11.5bn under management, and its co-owner Philippe Jabre stand accused of insider dealing. Guilty or not, the case has focused attention on the hedge-fund industry and its relationship with investment banks...
"The FSA’s investigators accused Jabre of receiving details of the stock sale from a banker at Goldman Sachs in London in advance of public disclosure. They alleged that Jabre illegally traded on this information to make about $5m for GLG...
"“The scandal could be the 21st- century London equivalent to what happened on Wall Street in the 1980s, when men like Ivan Boesky and Michael Milken traded tips on pending company mergers and acquisitions,” said one American banker.
"The lawyers present at the RDC hearing were divided into four teams. In addition to those representing the FSA, Jabre and GLG, there was one representing Goldman Sachs, even though it was not a target of the investigation, and no charges of wrongdoing have been brought against the investment bank.
"Despite being in the clear, the evidence that Goldman Sachs London banker John Rustum gave Jabre details of the Sumitomo Mitsui deal in a phone call on February 24, 2003 — several weeks before those details were made public — could cause the Wall Street institution serious embarrassment." 
Resources and articles
Related Sourcewatch articles
- Focus: Scandal at the heart of the City, Times Online, accessed April 21, 2009.