SAC’s Steven Cohen a Free Man for $1.8B: Berenzweig

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April 10 (Bloomberg) -- Seth Berenzweig, managing partner at Berenzweig Leonard, examines SAC Capital’s $1.8 billion settlement of a government insider-trading probe, what it means for Wall Street and what comes next for founder Steve Cohen on Bloomberg Television’s “Bottom Line.”

Settlement has been approved by a federal judge.

This caps a decade of government probes into insider trading.

Joining me now from washington, seth, welcome back to bottom line.

Great to see you as well.

Can both sides claim victory in this case?


Both sides can claim victory.

Wall street and the atmosphere of trying to instill confidence back into the american retail investor is a bit of an open question.

Prosecutors got a good deal because they have in his store to $1.8 billion resolution to this case.

The justice department has been going sac capital for a decade.

They were able to close it.

He is not only able to pay something that he can afford, but he is able to walk a way a free man.

Today's guilty plea, does it adequately punish the principle of sac capital?

Or has it been sidestepped in favor of throwing some underlings under the bus?

That is the core question of the day and a great point.

At the end of the day, if you step back on this the stork moment, you could argue they have fried the fish that missed the well.

You have people like matthew mark toma and others who either pled guilty or fought to the bitter end and lost.

I'm very surprised at matthew marontoma.

His decision to not disclose the contents of that critical summer of 2008 phone call that.

Based upon that, the statute of limitations for insider trading was missed with regard to steven cohen.

You had the basic architecture that ended up with a divergent result.

They did close the doors but missed stephen cohen.

What does today's action mean for the justice department?

What about the size of the monetary fine?

What message does that send to wall street?

It sends a mixed message because you have these individuals who are the underlings who get thrown under the bus.

If they get ripped away from their families and thrown in jail and go away for years.

Stephen cohen sells a few rare paintings and pays a fine.

He can afford it.

Then he goes free.

They changed the name on the door -- now it's called point 72 and he goes free.

This is a historic moment.

The justice department's able to without a victory.

Ifis bittersweet for the justice department and wall street.

What about stephen cohen?

He is the subject of an administrative proceeding.

If there is a culture of malfeasance starting at the top, why did they not charge him?

They cannot get the evidence to have a solid case against him.

Matthew martoma was the chance to close that deal.

Now he goes to jail -- all you have left against stephen cohen is a slap on the wrist for failure to supervise.

Which is basically a glorified employment case.

He will end up settling that.

When you have criminal cases, the administered proceedings are safe.

He will get back in and settle it.

You have very divergent situations that are going on here.

It really is not only a historic day but a day at mixed messages as far as compliance and wall street is concerned.

The former sec chairman gave a compliance lecturer to sac capital employees.

In a recent interview with bloomberg news, he said the following, "there are only two sorts of people who cheat under circumstances like this.

The first can't do it honestly and to the second are sufficiently arrogant to believe that none of societies' rules apply." look at what happens today.

Big money one.

The thing that is interesting about the article is, it's a great point.

In that story, he talked about the instance of the training program.

They had people that when and.

Guess who did not show up?

Stephen cohen.

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


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