D.C. Pols Tip Hedge Fund Managers

More evidence of insider trading on Capitol Hill? The Wall Street Journal reports on “a growing, lucrative—and legal—practice in Washington that employs a network of brokers, lobbyists, and political insiders who arrange private meetings between hedge funds and officials, including lawmakers and their aides.” The hedge funds pay for access and learn valuable information. On Dec, 8, 2009, for example, a group of hedge funds learned about the health-care compromise hours before it was made public—information worth millions of dollars. The meeting was arranged by JNK Securities, a New York–based brokerage firm.