Banks Woo Funds With Private Peeks – WSJ.com

Banks Woo Funds With Private Peeks – WSJ.com.

The lunch meeting casts a spotlight on a practice that has long occurred in the shadows of Wall Street and the City of London—but which is now causing concern among regulators and some banks.

Investment banks vie for business from elite hedge funds by offering traders at those funds special access to senior deal makers and corporate executives at dinners and other gatherings. The traders sometimes pick up valuable nuggets of information that aren’t available to other investors, according to people who have attended such gatherings.

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