More on the Moore Capital raid
My disclosure that the London offices of Moore Capital were raided by officials from the Financial Services Authority and the Serious Organised Crime Agency this morning will send shock waves through the City of London and Wall Street.
Although no-one has yet been charged, a Moore Capital employee has been arrested.
And the Financial Services Authority has described its probe as its "largest-ever operation against insider dealing" - involving almost 150 investigators and policeman in a swoop on 16 addresses in London, Oxfordshire and the south-east of England.
There is no suggestion of wrong-doing by Moore or its legendary founder, Louis Bacon.
But there are few hedge funds in the world that have been going for longer or that manage more money.
It is thought to manage some $15bn of investors' money.
And Mr Bacon is said by Forbes Magazine to be worth $1.5bn.
The FSA massively increased the resources it deploys on surveillance and enforcement three years ago - and with the probe of Moore, it is showing a willingness to probe the world's most powerful financial firms.
Deutsche Bank, the leading German bank with a huge City presence, has confirmed that one of its employees is under investigation by the FSA. It is co-operating with investigators.
Meanwhile a spokesman for Moore Capital tells me that its arrested employee has been put on gardening leave and that it too (naturally) is fully co-operating with the FSA.
Moore Capital's understanding is that the FSA is probing private dealings by the trader, rather than trades for the firm. If true, that would limit the reputational damage to the firm.
The third financial institution raided today was the London arm of the big French bank, BNP Paribas.
For the avoidance of doubt, the FSA is investigating individuals at Moore Capital, BNP Paribas and Deutsche Bank rather than the firms themselves.