It as been a while since we had an update on the insider trading allegations that continue to surround Morgan Stanley CEO, John Mack and hedge fund, Pequot Capital (details here). The SEC itself has been taking some heat relating to the case, due to the comments of former SEC enforcement officer, Gary Aguirre, who has asserted that he was disuaded (and ultimately fired by his bosses) when it came time to interview Mack.

Aguirre had named Mack as the key individual in tipping off Pequot founder and Mack personal friend Arthur Samburg regarding General Electric's acquisition of Heller Capital, the transaction to which the insider trading charges pertain. The heat on the SEC doesn't appear to have dissipated one iota, with the release of new documents detailing the process of the agency's investigation as well as their handling of Aguirre's departure. Very interesting reading.

Amongst the most disturbing revelations - Samburg uses emoticons in business correspondence. Six smiley faces? Egads.

-- MDT

Labels: Gary Aguirre, insider trading, John Mack, Morgan Stanley, Pequot Capital