Say it isn't so. Neil Barofsky, the SIG-TARP, or special inspector general for TARP, is looking into the possibility that news about TARP announcements filtered down to the trading desks of big banks, where it was used for illegally trading. If this blows up, it would be another devastating PR blow.

Barofsky told the Financial Times: "We have pending investigations looking into that--typically into insider trading. Once upon a time getting TARP funds actually meant your stock price would go up, and we are looking at specific trading around TARP announcements by insiders or looking at potential tips from insiders." Banks would be wise to get out ahead of this and conduct their own investigations. Stay tuned. 

For more:
- here's the Financial Times article

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