TRADING SECRETS: Seduction and Scandal at the Wall Street Journal

by R. Foster Winans ‧ RELEASE DATE: Sept. 29, 1986

A mea culpa memoir by the ex-Wall Street Journal reporter whose breach of professional ethics led to his 1985 conviction of securities fraud. Foster Winans co-wrote the Journal's influential stock-picking and -panning column, ""Heard on the Street."" His downfall was not what he heard, but what he told to one of his sources, 30-year-old superbroker Peter Brant of Kidder, Peabody. According to Winans, in 1983 Brant proposed that the reporter leak information from the columns in advance of publication; Brant would invest or divest accordingly, and the two would split the profits. The scheme worked with mixed results for several months, until American Stock Exchange employees began noticing the unusual correlation between the Kidder, Peabody accounts and Winans' ""Heard"" columns, and notified the Securities and Exchange Commission. Winans eventually confessed all to the SEC and went on to stand trial, along with his lover David Carpenter, and Brant's partner Ken Felis, both of whom had also participated in the scheme. Brant himself pleaded guilty and turned state's evidence. To the relief of the press, the court rejected the argument that Winans, as a reporter, committed illegal insider trading; but for his part in the conspiracy he did receive an 18-month jail sentence and a $5000 fine. The case is now on appeal. While he pleaded not guilty to the criminal charges, Winans was aware he was violating Journal policy. Why did he do it? Greed--not just for the bucks but for the self-assurance that Brant radiated. Then too, Winans felt no loyalty to the Journal, where he felt underpaid and insecure. Still, the guy can write. When he first hears the words, ""the SEC has some questions to ask you,"" the reader's heart begins pounding along with his. While the idea of Winans getting it off his chest and into his bank account is irritating, Trading Secrets tells a juicy tale--and an especially timely one, in light of the recent spate of insider trading scandals.

Pub Date: Sept. 29, 1986

ISBN: N/A

Page Count: -

Publisher: St. Martin's

Review Posted Online: N/A

Kirkus Reviews Issue: Aug. 15, 1986

Categories: NONFICTION