Article: Wall Street's 'arbs' on the hot seat. (arbitrageurs)

Wall Street's 'arbs' on the hot seat

Wall Street's arbitrageurs have been happy to stay out of the limelight as they conduct a highly lucrative business dealing in the stocks of takeover candidates. But the arrest of Drexel Burnham Lambert's merger specialist Dennis Levine for insider trading has pushed this secretive coterie into the public eye. Levine was widely known for cultivating contacts among arbitrageurs, and the investment community is speculating on where the next shoe will drop. This scrutiny comes as the "arbs" are flush with recent profits and record amounts of new capital.

The Securities and Exchange Commission claims Levine made more ...

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