Galleon

US prosecutors are probing a Morgan Stanley banker Kamal Ahmed over leaking information about an upcoming takeover that ultimately was passed on to Galleon Group founder Raj Rajaratnam, the Wall Street Journal reports, citing unnamed sources with the knowledge of the matter.

Ahmed is the first Wall Street banker investigated publicly over Galleon whose founder Rajaratnam faces insider trading charges, the Journal said.

 The Monday document prolonged the term for the eight people charged in a coast-to-coast U.S. hedge fund insider trading investigation to provide them with an opportunity for possible resolution of their criminal cases. The document involves eight people who were among 14 defendants charged with fraud on November 5 in the widening of an insider-trading scandal that initially shook hedge funds in mid-October with the arrest of Galleon Management LP's billionaire founder Raj Rajaratnam.