Fifth Third, Citigroup (NYSE:C), UBS, Barclays, U.S.Bank, Goldman Sachs (GS), Wells Fargo (WFC), HSBC, BNP Paribas, BB&T, JPMorgan Chase (JPM) and PNC all had information before the public had it today, about what was going to be said by Fed at 2pm and they used that information to make profits in the stock market. I think that is called insider trading.
Almost without fail, the market normally sells off prior to a statement from the Fed because nobody is ever 100% sure what the Fed is going to say. Today however, the market spiked higher (significantly higher) before the release at 2pm. An obvious sign that these institutions knew in advance what the tone of the statement was going to be.
The problem is-the people who got hurt by this. It is logical, that some traders (who were not fortunate enough to have the Fed's minutes in advance) may have shorted the market before the Fed's 2pm statement and got walloped.(for sure this happened to some traders)
It's just another example of how uneven the playing field is and why it is so difficult for independent traders to succeed in this game. If you are succeeding, it is because you are exceptional and better than many of the guys sitting in the office's of any of these institutions.
Do you think the SEC will take any action here? Yea right! If you believe that they will, there are 3 bridges I'd like to sell you.
Good luck out there! You are swimming in treacherous waters.