Andrew Verstein writes:
Are insolvent firms different from solvent firms with respect to insider trading law and policy? Formally, the law does not change. But economic realities and non-securities law duties do. As a result, the insider trading landscape changes considerably. The law is more permissive in some ways, and more constraining in others, as troubled instruments trade.
It's a very interesting analysis. And one that I have not thought about before. (Verstein's very good at sniffing out these sort of seemingly obscure problems that turn out to be interesting and important.)
I'm going to have to mull this one over for a while.
