Wall Street's Deep Throat

A banker is charged with passing tips to an X star

There is a reckless streak in many of us, a brashness that is usually channeled harmlessly into leisure pursuits like bungee jumping or indulgences such as an extra piece of chocolate-mousse cake. But for James McDermott, 48, the former chief executive of the New York City investment bank Keefe, Bruyette & Woods, that recklessness led to the arms of an adult-video actress and then to the even longer arms of the law. The banker was charged last week with insider trading for allegedly tipping off Kathryn Gannon, 30, better known as Marylin Star, to a series of impending bank mergers. According...

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