Federal prosecutors and the SEC are charging a Credit Suisse banker with relaying insider information to an unnamed Pakistani banker who made more than $7 million on illegal trades. Hafiz Nasseem, who started at the bulge-bracket bank last year, is said to have immediately started sharing tips on upcoming deals—using company phones to call the buys.
The most recent and largest of the nine trades—all of which involved mergers Nasseem was working on—anticipated a huge deal involving energy giant TXU. The SEC office in Fort Worth warned that the case may get bigger: "We know there are others out there who think they've escaped detection. They're wrong. We're coming after them."