Financial 411: Deliberations Begin in Rajaratnum Trial
Monday, April 25, 2011
Stocks fell Monday on light volume a day after the Easter holiday. Investors pushed stocks down, worried that inflation could cut into corporate profits.
The Dow lost 26 points, to close at 12,480.
The S&P lost two points, ending at 1,335.
The NASDAQ gained six points, to finish at 2,826
The Week Ahead
The big news this week is that Federal Reserve Chairman Ben Bernanke is holding a news conference on Wednesday. It's a new move for the Fed, and something Bernanke's now planning to do every three months. WNYC's Charlie Herman explains that instead of the usual press release, Bernanke, in a nod to greater transparency, will take to the mic to answer questions. The results of these regular news conferences could have implications for the markets, politicians and journalists. They may also be a risky move for the Fed, where not everyone agrees all the time.
Deliberations Begin in Rajaratnum trial
The jury is now deliberating in the trial of billionaire hedge fund manager Raj Rajaratnam. Prosecutors say that starting in 2003, Rajaratnam made nearly $64 million through illegal stock trades based on inside information.
Rajaratnum is a lot less famous than Martha Stewart or even Jeffrey Skilling of Enron, who were both tried for insider trader. But prosecutors see this as an incredibly important case. WNYC's Ilya Marritz, who was in the courtroom, said that's because it's being called the largest insider trading case in U.S. history. It's also one of the first insider trading cases where investigators made use of wire-tapping to build the case against Rajaratnum.