![]() ![]() The SEC later concluded Jett had committed securities fraud and banned him from the industry. When the fraud was discovered, it was determined that Jett had lost 75 million dollars over the four years instead of the apparent profit of 275 million dollars over the same period. Joseph Jett, a trader on the government bond desk, was found to have systematically exploited a flaw in Kidders computer systems, generating large false profits. Kidder, Peabody was later involved in a trading scandal related to false profits booked over the course of 1990–1994. In response, GE fired Kidder chairman Ralph DeNunzio and two other senior executives and stopped trading for its own account. With Rudy Giuliani, then the United States Attorney for the Southern District of New York, threatening to indict the firm, GE conducted an internal investigation that revealed Kidder executives hadn't done enough to prevent the improper sharing of information. Wigton was the only executive handcuffed in his office as part of the trading scandal, an act that was later depicted in the movie Wall Street. The firm was implicated when former Kidder executive Martin Siegel-who had since left for Michael Milken's junk-bond investment firm, Drexel Burnham Lambert-admitted to trading on the inside information.Īlso implicated by Martin Siegel was Richard Wigton, head of arbitrage trading for Kidder Peabody. ![]() Stewart bestseller Den of Thieves, swept Wall Street. Shortly after GE bought Kidder in 1986, a skein of insider trading scandals, which came to define the Street of the 1980s and were depicted in the James B. Kidder and the 1980s Insider Trading Scandal This move probably contributed to preventing a major financial crisis in Lebanon from worsening. helped to arrange a deal whereby the US Commodity Credit Corporation invested $21.8 million in the failing Lebanese Intra Bank, a cornerstone of the Lebanese banking industry. ![]() Kidder Peabody's offices on Devonshire Street in Boston c. ![]()
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