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from Rolfe Winkler:

Evening Links 12-6

(Reader note: One bug we're still trying to work out is that links in the top line of a post aren't "hot" in the front-page view of the blog. If you click "continue reading" the link is available)

The FBI agent inside the Galleon case (Goldstein, Reuters) More great work from Matt.

MIT team wins DARPA red balloon challenge ( But how did they do it?

Requiem for the dollar (James Grant, WSJ) A fun (and frustrating) piece to read. Grant is a good writer, but he throws provocative comments around without explaining them. He says we need to collateralize the dollar, presumably with gold, but acknowledges early in the article that the gold standard was far from perfect: "The lifespan of no monetary system since 1880 has been more than 30 or 40 years, including that of my beloved classical gold standard..." No doubt he has ideas to improve his "beloved" standard, and that would be useful to read. Too bad he doesn't go into it.

Bair weighs loan principal cuts to fight foreclosure (Vekshin, Bloomberg) Writing off principal is the opposite of extend and pretend. But if Bair wants to pay for it using the Deposit Insurance Fund, she'll have to stay aggressive with assessing insurance premiums on banks.

Do Galleon’s tentacles reach to Chicago?


It appears Chicago-based Balyasny Asset Management may have been drawn into the Galleon insider trading scandal.

Hedge Fund Alert is reporting that a former Balyasny analyst is drawing scrutiny from securities regulators in connection with the fast-growing insider trading case that has led to the filing of either criminal or civil charges against 20 people. The $2 billion hedge fund reportedly notified some of its investors that the Securities and Exchange Commission has been investigating the unnamed analyst’s activities for several weeks.

Galleon arrests


Federal authorities have arrested eight additional people in connection with the Galleon insider trading scandal. And later today prosecutors intend to announce the filing of charges against 14 new defendants–including the eight arrested today,  people familar with the case say.

In all, this means there will be 20 defendants in this fast-growing case.

On Wednesday, I wrote a column about how the Galleon insider trading case is like a jigsaw puzzle with several pieces left to be snapped into place by federal authorities. Will the latest developments reveal just how far the outer boundaries of the Galleon puzzle extend?