[grania]

One member of the committee says the e-mails show brokers Peter Bacanovic and Douglas Faneuil, had inside dope that the Food and Drug Administration would reject Erbitux - and wanted to tell the Queen of Clean before ImClone's stock price tanked.

You wrote "she traded on insider information". Would this be insider information, if she got the advice to sell from her brokers? This sounds like it was the brokers that initiated her sale with this call.

[Jimmy Valentine]

There is a so-called "window" that "insiders" primarily corporate executives have to stay out of. The "inside" (not publically available) information that Imclone's drug was going to be rejected and its stock as a result dropping in price would allow a person with that information to not only save their investment but also "short" sell the stock at the expense of everyone ( the general public) not privy to that information.

Waksal took advantage of it and also passed the tip to Martha who bailed out.

She has a real problem. 1. She may have had inside information which made her sell. 2. She may have lied about it.

This is double trouble for her.

Side bar note: the New York Post tracks the price of her Martha Stuart stock daily and reports how much she has lost in value on her holdings. Last I checked it was $229 million and rising. All because she wanted to save $250,000 on her Imclone stock. What a silly waste of reputation.

"How art thou fallen from Heaven, oh, Lucifer son of the morning?"

Regards,