Jim Cramer of CNBC — a former hedge fund manager — suggested to U.S. Attorney Preet Bharara that Wall Streeters are using Snapchat for insider trading, according to BetaBeat. Bharara’s response was less than comforting.
Cramer asked at Wednesday’s Delivering Alpha conference: “My daughter and I Snapchat. OK, it disappears in three seconds…Can the bad guys Snapchat, ‘Go buy Leap Wireless’ at 3:45 on Friday and get away with it, because you don’t have the technology to stop it?”
Bharara: “I don’t even know what you’re talking about. Have your daughter call me.”
On a personal note, I actually have a close friend on Wall Street who is a huge Snapchat fan. Just yesterday he sent me a shirtless photo of himself with an arrow labeled “Tim” pointing towards his face. He’s funny like that.
As far as work-related Snapchats, the only thing he’s sent is a pose by his computer with “Workin’ hard or hardly workin??” scrawled across the bottom. Then again, I’m not a major institutional investor, so maybe he’s shootin’ off the juicy insider tips to people who matter in between the stupid selfies.
If Wall Streeters have caught on to the criminality potential of Snapchat, then it would be yet another technological leap over the SEC. First it was Nobel-winning physicists creating highly-complex CDO financial instruments; now it’s Silicon bros creating secret-sharing apps.