Executives: Crying on the Inside

A banker sits on a company's board and also has a place on the investment committee of his bank's trust department. Almost simultaneously he learns that the company's profits will be disappointing and that someone in his trust department wants to buy the company's stock. Should he warn the bank not to buy?

A lawyer on the board of another company finds out that the firm will soon market a profitable new product. But one of his law partners is an adviser to several estates and intends to unload the company's shares. Should...