So a rogue employee of a venerable New York company calls his buddy on a burner to get some stock tips — oh, you already know this one?
This week’s unfortunates are Matthew Kluger and Garrett Bauer. The government claims they have been trading on inside information since the 1990s, when Mr. Kluger was a lawyer at the Wall Street law firms Cravath Swaine & Moore and Skadden, Arps, Slate, Meagher & Flom. These are basically the white shoe law firm equivalents of McKinsey (the Fortune 500 management consultancy that had a rogue employee who is guilty of insider trading), or SAC Capital Advisors (the giant hedge fund that had rogue employees who were charged with insider trading).
Here, as you might expect, is Skadden’s response to the news, otherwise known as the “bad apple disclaimer”:
“We have strict policies that protect our clients’ confidential information, which we monitor closely. It would be deeply disappointing if these policies were not followed in this instance. We are cooperating fully with the government in this matter.”
Everything is just so disappointing.