Steve Hawkes
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The Financial Services Authority revealed this year that there was something fishy going on in the City.
A report showed that a quarter of all UK takeovers were preceded by share price movements that indicated insider trading. This followed a study revealing that a third of all market sensitive announcements were preceded by suspicious share dealing.
So far the FSA has brought only one successful enforcement case for institutional market abuse, against a hedge fund manager.
Meanwhile, on the other side of the Atlantic, they are falling like ninepins. The arrests yesterday were only the latest in a fierce crackdown by the SEC and other federal authorities.
John Tiner, the FSA chief, has made a priority of stamping out insider trading.
But until the reports and studies come to an end and the court cases start, he soon will be a toothless regulator with nothing more than good intentions in his armoury.
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