Insider Trading: Gym Bags, Boats, and Bad Decisions

Barclays executive Steven McClatchey pleaded guilty to leaking confidential information to Gary Pusey between March 2014 and August 2015. Pusey, a plumber by trade, made 11 illegal trades based on that inside knowledge—trades related to companies McClatchey dealt with in Barclays’ investment banking division.

Interestingly, the two men bonded over identical boats docked at New York’s Yachtsman’s Cove marina. It’s a curious friendship, and even more curious is how a plumber afforded such a lifestyle—though $76,000 in illicit gains likely helped. According to the SEC, that’s how much Pusey profited from his trades. In return, he rewarded McClatchey with gym bags full of cash and a bathroom renovation.

While the amount of money might not seem worth risking a prison sentence, the case underscores how courts now define insider trading: it hinges on whether the insider received a “personal benefit” in exchange for the information. Hanging out on a boat doesn’t qualify. Thousands of dollars and free remodeling? That’s another story.

Let’s be honest—if you’re stuffing cash into a gym bag and sneaking around, you’re probably not doing something above board. A simple rule: if it feels like a crime movie, it’s probably a crime. Don’t do it.

JPMorgan’s Wage Hike: Progress or PR?

In a recent New York Times op-ed, JPMorgan CEO Jamie Dimon announced wage increases for around 18,000 employees—mostly bank tellers—raising pay to between $12 and $16.50 per hour. It’s a nice gesture and, on the surface, a win for working Americans. Dimon wrote, “A pay increase is the right thing to do. Wages for many Americans have gone nowhere for too long.”

However, what Dimon didn’t mention is the fact that between 2012 and 2015, JPMorgan Chase eliminated roughly 12,000 teller positions. I worked for Chase as a branch manager during that time and saw the changes firsthand. The bank was actively pushing customers toward online and ATM banking. Many branches were adopting “super ATMs,” able to perform most transactions with minimal staffing—like grocery store self-checkouts, but for your checking account.

As automation replaced cash-handling roles, the bank shifted its hiring priorities. Tellers today are expected to provide customer service and solve problems, not just handle money. Those interpersonal skills merit better pay, and in that light, the wage hike is less a goodwill gesture and more a necessity of the evolving market.

Still, there’s an irony here. When I was managing a branch, we were often so short-staffed that assistant managers and I had to run transactions ourselves—an inefficient and costly workaround. Instead of hiring a part-time teller, the bank used expensive managers to do $12-an-hour work.

Banks, like many industries, are rebalancing compensation as technology reshapes job roles. But the truth is: wage growth is a byproduct of market forces, not necessarily corporate benevolence.

Self-Driving Cars: Not So Fast

Despite massive investments and a flood of media buzz, self-driving cars still face a bumpy road to public acceptance. The recent fatal crash involving a Tesla Model S has thrown that reality into sharp relief. The driver, Joshua Brown, was using Tesla’s autopilot feature when he collided with a tractor-trailer at 65 mph. Tesla defended the system, emphasizing that drivers must still pay attention and use autopilot responsibly.

The deeper issue, however, is trust—or lack thereof. As Bloomberg columnist Matt Levine pointed out, studies show people tend to trust human decision-makers more than machines, even when the machines outperform them. This concept, known as algorithm aversion, helps explain the public’s hesitancy.

Brown’s tragedy isn’t just about one man’s decision to trust a car; it’s about the unintentional risk he posed to everyone around him. We’re not just talking about the driver’s safety—we’re talking about everyone else sharing the road. Many of them didn’t choose to ride alongside a vehicle piloted by artificial intelligence.

Sure, technology adoption takes time. Self-driving cars may eventually become the norm. But for now, many of us aren’t ready to see two tons of steel flying down the highway under computer control—and with good reason.

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