In an interesting twist in the downgrade saga, the Securities and Exchange Commission has started an inquiry into possible insider trading at Standard and Poors around the time of the downgrade.

“The U.S. Securities and Exchange Commission has asked rating agency Standard & Poor’s to disclose which employees knew of its decision to downgrade U.S. debt [...]

“A federal jury convicted Galleon Group founder Raj Rajaratnam on all 14 counts of securities fraud and conspiracy, providing the U.S. with a significant win in a push to prosecute insider trading on Wall Street and in corporate America….The widely watched trial exposed the behind-the-scenes dealings of a once-prestigious hedge fund that gained access to [...]