Tuesday Links: Insiders, Preemption, iPhone Mags

The Journal floods the zone on the big hedge-fund insider-trading story. It goes page one with a report noting a run on the fund, a Sri Lanka-datelined story on how that country’s stock market tumbled on the arrest of Raj Rajaratnam, its ex-pat and biggest investor, and a look at the not-always-simple line between trading on information and trading on illegal inside information.

It also has a smart story on South Asian immigrants’ success in tech and financial services, calling them a “new power elite.” And finally, there’s a report on Moody’s, whose employee is implicated in the scandal, and the implications for already beleagured credit raters. It’s an impressive show of the resources the paper can deploy.

This Washington Post story has a bum headline, but it’s otherwise a good look at how Congress is likely to pass legislation that allows states to impose harsher regulations on the financial industry than the federal government, reversing a doctrine enshrined by the Bush Administration that helped worsen predatory lending in the run-up the bubble.

— Condé Nast says it will sell individual issues of its (remaining) magazines for $2.99 on the iPhone. AdAge reports the apps will be replicas of the page layouts of the actual mags. That’s a nice idea, but until companies stop giving their content away for free on the Web, I can’t imagine why anyone would pay for such a thing. You know smartphones have Web browsers, these days. (h/t Romenesko)

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Ryan Chittum is a former Wall Street Journal reporter, and deputy editor of The Audit, CJR's business section. If you see notable business journalism, give him a heads-up at rc2538@columbia.edu. Follow him on Twitter at @ryanchittum.