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Charlie Gasparino -- the exclusive details.
About the federal probe into one of the world's best traders Charlie it will make one point about the fiscal cliff I don't think people are focused on it now.
They will not be focused and -- the market tradeoff I mean it's pretty interest in market psychology I cover the financial crisis.
When -- people really start freaking out when you at 600 point swings.
Outside the market believes there's gonna be deal and it paid until the market trades off.
We don't we ever gets is going to be talking about that coming up a little bit later on -- you know as we get close of the year but but a lot of people least not on the back burner I mean there SAC investigation is still get an.
Well yeah I just want to make a one point because that they have when you see the markets trade off then you watch people freak out.
Interesting thing about Steve Cohen is that.
There is no more remarkable trader out there than this -- say what you want about him.
Whether he did insider trading and -- but if you look at his returns since inception I believe he started in 921 down year 1998 was 19% he's up.
This year so -- 10%.
And that's why the feds are after my could tell you this I spoke to I've been speed to a lot of people in the FBI.
The SEC and the Justice Department what makes you think someone is guilty of insider trading.
Comes down to pretty much this long term returns consistent.
And less volatility and I think when you look and what they do generally is they've looked at Roger Roger -- returns.
Pretty much steady returned.
Not a lot of volatility you look at Steve Collins returned one down near he's returned 25%.
And you look at warm buffet he destroys.
Buffett over that period of time Buffett has both more volatility.
And returns -- I think he's -- since 96 returned 7% to investors.
He's a long now but so -- would come back and say listen.
But for so long only investor right posing -- is investing in you know things he thinks that they are -- -- be good long run.
Feds don't care about that they looked at consistency and outfit that's the beginning of this case.
He's Wii to good.
What do they know that I can -- -- but there saying he's too good.
But -- you mean you've covered a ton of these insider trading cases if they had to smoking gun if they had the recording like they did.
The drug drug -- they have the wiretaps -- this man would be charged and it sounds that they don't really have anything to try to build a case that would well elect the old days they don't hold up so well court.
Along time they've been -- for a long time we were first report they put that wiretap on us found they found not a lot of stuff there's a lot of delays.
I will say this.
They really believe that he runs a -- shop I'm not saying he is I think you know I don't I don't know but I know what they think.
They've they believe you can't have this type of return.
These temperatures -- the way they are the consistent returns and not be dirty and here's a thing I think what they also believe he is set up a system.
A full proof system of Don't Ask Don't Tell you guys want to do whatever you do you do what you do.
And I'm insulated I'm in the middle you come to me which your ideas.
Don't necessarily tell me how how you got those ideas and by the way here's a handbook which educated to insider trading the SEC -- which there is one.
That's what the feds believe he's an end and and how do you know that.
Look at the case the SEC's -- gets -- the civil case against a firm.
For not basically not having adequate compliance I mean it's basically if you read between the lines of that will submission.
And and how they described it that's what it sounds like.
But it doesn't sound like he's gonna be the kind of get that the governor -- to run -- doesn't sound like they're gonna.
You know we believe in -- wailed the Moby Dick -- be able to -- and they need to flip.
You're Smart they need to flip and that's what they believe he's too Smart you know -- set up a -- persistent I mean as I've listened to the Roger I'm I'm due to book about the -- I've actually listen to the tapes were brought Jimmy.
Listening to diet Daniel -- -- is a one of his main informants and other fund manager for New Castle -- I was in jail right now.
I mean those conversations were hysterical I mean you know what how they work sources how they got information out of people.
I just can't register call what happened just because of this patients are are -- -- got straight up thanks so much we've got some breaking news now we're.
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