Bond-Trader Crackdown Stalls, But Wall Street May Never Be Same
- Government’s probes have boosted caution accross industry
- Litvak, Demos cases unraveled for prosecutors Thursday
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Mortgage-bond traders David Demos and Jesse Litvak bent the truth when talking to their customers, and after two government cases unraveled spectacularly on Thursday, it looks like they got away with it. Even so, Wall Street may never be the same.
Many salespeople no longer reveal how much their banks paid for a bond they’re trying to sell customers, as a matter of firm policy. Traders say they’re more cautious about what they put in emails and chat messages that can be traced. Banks have beefed up their efforts to monitor their employees.