Former “Sheriff of Wall Street” Eliot Spitzer told CNBC on Monday that a law defining insider trading should be passed.
“I think it is time for a statutory definition of insider trading, ” the former New York attorney general and governor said.
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In a landmark ruling last month, a federal appeals court overturned the convictions of two former hedge fund managers charged with making illegal trades in technology stocks. The ruling held that prosecutors needed to prove a trader knew the original source of nonpublic information received a benefit in exchange for the tip, the report said.
“[In] tipper, tippee liability there’s this area of ambiguity. That’s not good. We need certainty and clarity so people know what the rules are, ” Spitzer said Monday in an interview with CNBC’s “Squawk Box” business show, according to the report.
“Define the lines and then play by that line. That’s it. It’s very simple, ” he continued. “We don’t need regulations. We don’t need uncertainty. Establish a bright line and live by it.”
Spitzer resigned as governor in 2008 amid a prostitution scandal, the report said.