'Political intelligence' firms face insider trading inquiry

'Political intelligence' firms face insider trading inquiry

The Securities and Exchange Commission has issued subpoenas to firms and individuals connected to the leak last month of a federal funding decision that appeared to cause a surge in stock trading of several major health companies.

The move deepens the government’s scrutiny of the emerging “political intelligence” industry, which has been thriving on delivering valuable information from Washington to investors. This relatively new breed of companies capitalizes on the fact that decisions made in Washington — whether a regulator blocking a big merger or a lawmaker tweaking legislation — can create opportunities for stock traders to make money.

Read more at:
http://www.washingtonpost.com/business/economy/sec-issues-subpoenas-to-political-intelligence-firms-connected-to-leaked-information/2013/05/01/43121794-b290-11e2-bbf2-a6f9e9d79e19_story.html