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Galleon verdict a wake-up call, says NYU biz prof

Published May 11, 2011 at 2:41 PM

The conviction of Galleon Group LLC founder Raj Rajaratnam on all 14 counts of securities fraud and conspiracy is a "wake-up call that the markets need a little more policing," says Richard Sylla, the Henry Kaufman professor of history of financial institutions and markets and professor of economics at the NYU Stern School of Business, in this video interview with The Deal magazine. "If people don't trust the markets to be fair, they will start staying away from them," he cautions. We spoke with Sylla on Wednesday, moments after the verdict was announced and just before he spoke on a panel commemorating the 115th anniversary of the Dow Jones Industrial Average Index, which was held at the New York Society of Security Analysts. For an update on another high-profile individual convicted of insider trading, see "Martha redo," by Richard Morgan in The Deal magazine. - Mary Kathleen Flynn
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