Manne thinks there could be a much bigger consequence if the FTC actually files suit.
Manne thinks the foreclosure argument is very difficult to maintain in terms of the alleged search bias.
If they could trade on what they know, Manne says, they might be more energetic and creative.
FORBES: The Solution To Insider Trading Problem? Legalize It
Schumpeter got that wrong, Manne says, but he diagnosed a serious problem that insider trading could fix.
FORBES: The Solution To Insider Trading Problem? Legalize It
Manne is an Adjunct Scholar at the Cato Institute and Dean Emeritus of George Mason University School of Law.
Manne said there needs to be foreclosure to make a Section 2 case.
The problem with trying to win a deception case, Manne responded, is that the deception has to revolve around material statements that are misleading.
Along with drummer Shelley Manne and bass player Leroy Vinegar, he recorded the first jazz version of a Broadway score for My Fair Lady.
Manne thinks it would make more sense to let the insiders trade on what they know, and cut out the hedge-fund managers and their procurers entirely.
FORBES: The Solution To Insider Trading Problem? Legalize It
Allan Manne of Stanford University and Richard Richels, who works at the Electric Power Research Institute, an industry-funded policy research group based in Palo Alto, California, have been studying this idea.
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