David Einhorn Tells His Side Of The Story On The FSA's Insider Trading Fine
Prominent hedge fund manager David Einhorn, who is known for seeing problems at Lehman Brothers and publicly shorting the stock prior to the bank's demise, was fined yesterday by the U.K. Financial Services Authority.
Einhorn and his fund Greenlight Capital, which has about $8 billion AUM, were slapped with a $11.2 million penalty by the FSA for trading stock in Punch Taverns PLC on inside information back in 2009.
While the hedge fund manager said that he completely disagrees with the FSA's decision, he said his fund will not seek further litigation.
"We doubt our chances of having a fair hearing," he said during a conference call Wednesday afternoon.
In fact, Einhorn had "quite a lot to say" during the 54-minute call to get his side of the story out there.
"I agree this is a serious matter, but not for the same reasons as the FSA. The FSA says this was an act of 'insider dealing.' This resembles insider dealing as much as soccer resembles football," Einhorn said.
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