Shouldn't Conclude Cohen Is off the Hook: Barrett

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July 26 (Bloomberg) -- Bloomberg Businessweek senior writer Paul Barrett examines the insider trading charges against SAC Capital. He speaks on Bloomberg Television's "Bloomberg Surveillance."

In terms of insider trading, this is probably the clearest message yet from the government that it will not be tolerated.

Do you think it is a effective?

I think this is an example of where a deterrent can work.

There are all kinds of people who play close to the edge who read yesterday's headlines online and said this is something i don't want to get involved with.

Another important point is, i think we should not jump to conclusions that steve cohen is completely off the hook.

That is were things didn't -- things stand today.

The one to keep an eye on is mark.

He is going to trial in november.

That is several months for him to think how long he might want to spend in prison and whether that amount of time could be diminished if he turned on his former boss.

I don't think steve cohen should be sleeping easy at night.

It is not a question of hundreds of millions of dollars.

Alongside the criminal indictment, there are several money-laundering allegations pending and the government theory is that all those illicit profits who mingled with all of the companies money.

The government is going after billions here, not just hundreds of millions.

If they are going after a guilty conviction, are they benefited by just the process a loan, -- alone?

Is the process so damaging that is about the process and not the end result?

The indictment of the company as a corporate entity is a death penalty.

This company cannot exist as a company that takes institutional investment.

Can't exist as -- can exist as a company office, yes, but not in its current form.

It is not just a narrative of names and numbers.

It is more broadly an account of a firm with zero tolerance but seemingly tremendous tolerance for questionable conduct.

Sac capital became over time a magnet for market cheaters.

Was his shop really that different from other aggressive hedge funds on wall street?

I cannot answer that.

What we know about them is you have six portfolio managers who have pled guilty, who admitted and you have a lot of evidence.

You cannot underestimate the symbol of the company stood for.

It was one of the most successful hedge funds.

Steve cohen made himself extremely wealthy but much higher returns than the average in the industry.

That is true.

As he was becoming the legend that he became, they explicitly marketed themselves as having what they call an edge.

They were signaling that we are pushing it.

That is, in part, what people were investing.

They thought this was a firm that really goes for it, that hires sharp, young people who got the edge.

That is not deeper analysis.

That is not phd in analyzing the market.

That is accessed.

That line is a dangerous line to walk.

Sac capital has spotted that they took compliance very seriously.

It is interesting to see how hard they fight this.

I was making of a car from my childhood.

He came back to me because we were talking about how general

This text has been automatically generated. It may not be 100% accurate.


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