Given the prominent role that credit-default swaps played in the financial crisis, there was a lot of interest in the Securities and Exchange Commission’s insider trading case against a Deutsche Bank bond salesman and the hedge fund portfolio manager who allegedly booked a $1.2 million profit based on the bond salesman’s tips. All eyes were on the SEC, which was testing its regulatory power in the trillion-dollar CDS arena—and hoping to improve its lackluster recent trial record.
That did not happen.
