SAC Capital hit with criminal charges(money.cnn.com)
money.cnn.com
SAC Capital hit with criminal charges
http://money.cnn.com/2013/07/25/investing/sac-capital-charges/index.html?hpt=hp_t2
24 comments
From what I've read, even with criminal charges it's unlikely that Steven Cohen or anyone else involved will serve jail time.
Here in Colorado an electronics recycler sent their recyclables to China instead of actually recycling and the CEO got 30 months in prison.
I continue to be shocked that bankers and investors get away with fines and a slap on the wrist. I'm not aware of any that have served prison time since the recession started.
Here in Colorado an electronics recycler sent their recyclables to China instead of actually recycling and the CEO got 30 months in prison.
I continue to be shocked that bankers and investors get away with fines and a slap on the wrist. I'm not aware of any that have served prison time since the recession started.
You haven't been paying attention: http://online.wsj.com/article/SB1000142405297020477460457662...; http://www.bloomberg.com/news/2013-07-01/ex-galleon-trader-z...; http://www.advancedtrading.com/regulations/the-9-most-notori....
For each of these token prosecutions, there are many others who continue unabated. Fines, if any are often a trivial portion of the profits stolen in such schemes, which incentivizes the behavior.
There is nothing "token" about a prison sentence.
There are plenty who serve no time, and Federal prison for white collar crimes when compared to sentencing for other crimes, is token, at least in the relative sense.
>I continue to be shocked that bankers and investors get away with fines and a slap on the wrist. I'm not aware of any that have served prison time since the recession started.
Have you stopped to think that maybe, possibly, it's because there very little provable, criminal wrong-doing? And that perhaps it's not a good idea, for the country and its economy, to throw capitalists in jail when a business goes south, simply because the populace demands heads? That's not a good precedent.
Not everything is a conspiracy. The population currently detests Wall Street. If there was rampant criminal action associated with the recession, some politician would have latched on and run with it, and would have been a hero.
Should we also throw in jail all those mortgage applicants who lied about their job or income on the application? That was also fraud that led to the crisis.
Have you stopped to think that maybe, possibly, it's because there very little provable, criminal wrong-doing? And that perhaps it's not a good idea, for the country and its economy, to throw capitalists in jail when a business goes south, simply because the populace demands heads? That's not a good precedent.
Not everything is a conspiracy. The population currently detests Wall Street. If there was rampant criminal action associated with the recession, some politician would have latched on and run with it, and would have been a hero.
Should we also throw in jail all those mortgage applicants who lied about their job or income on the application? That was also fraud that led to the crisis.
raj rajaratnam?
He is Indian. If you look back at other scandals, usually it's a person considered in a racial minority (Jerome Kerviel, Joseph Jett) that see jail time
1) Raj is Sri Lankan, not Indian.
2) Kerviel is French, grew up and was educated in France, and worked for a French bank. He isn't a racial minority.
3) Jett was a minority sure and Milken, Boesky, etc. were not minorities. Not exactly a pattern there.
He was also worth nearly $2 billion before his conviction.
Also, Indians aren't exactly underrepresented minorities on Wall Street. There are tons of them in the industry. Also the guy who prosecuted Raj Rajaratanam was Indian...
Also, Indians aren't exactly underrepresented minorities on Wall Street. There are tons of them in the industry. Also the guy who prosecuted Raj Rajaratanam was Indian...
This is a huge claim. If you are going to claim that white-collar convictions fall disproportionately on Indians you are going to have to provide data that give evidence of that claim.
Okay, how many more have you got?
There is no mention of jail time in any of those cases. The ones I saw all say "paid more than $x to settle the charges".
Google the names. Several of those people went to jail. E.g. http://www.myquitamlawsuit.com/index.aspx?id=news_insider_tr....
>"James F. Turner II, Clay Capital Management, LLC hedge fund's chief investment officer has received a one-year prison sentence and a $25,000 fine for insider trading. Turner's conduct netted over $2.5 million."
That ought to put a stop to it eh?
That ought to put a stop to it eh?
Finally! The whole world has known that SAC is nothing but insider trading with plausible deniability. SAC even had a platform, where if you submitted a trading idea, and they used it, then they would pay you a fee. It was a scheme to harvest insider information but give SAC an excuse.
SAC Capital of Deep Capture fame? Why am I not surprised?
http://www.deepcapture.com/tag/sac-capital/
http://www.deepcapture.com/tag/sac-capital/
Inside information for wall street is what steroids are for baseball players - everyone uses it.It's the only way to compete and everyone just tries to one-up each other by using more
That's the elephant in the room. There are far more hedge funds than there are rocket science algorithms that could possibly confer a trading advantage.
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This is dominating the discussion at our fund right now.
They should have traded commodities, at least with commodities, most forms of insider trading are legal:)
It will be interesting to see if the fund lives on from this . I find this unfortunate, Steve Cohen is one of the people in this industry I enjoyed following.
They should have traded commodities, at least with commodities, most forms of insider trading are legal:)
It will be interesting to see if the fund lives on from this . I find this unfortunate, Steve Cohen is one of the people in this industry I enjoyed following.
How many of these guys will actually end up behind bars?
(Correction: 3% of NYSE, 1% of NASDAQ: http://www.vault.com/company-profiles/hedge-funds/sac-capita...)