Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Gasparino: SAC Officials Bracing for Large Fine

Details

  • Description

    FBN's Charlie Gasparino reports the latest on SAC Capital

  • Duration 3:36
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Hi I'm Steve Cohen is in -- -- believe it or not at the World Economic Forum right now yes -- here that I wasn't seems like he has some issues naturally go over there is set top executives by the way are at SEC headquarters in Stamford Connecticut scrambling to stem massive redemptions -- the embattled hedge funds and answering questions from nervous investors about an SEC investigation.

What are they saying -- this is near respectfully ask him has exclusive new details -- -- agency he's there right.

With the China.

This -- a little different you know because there is.

You know incredible regulatory across the -- interest in SEC capital in Steve -- involving insider trading.

We should point out that there is -- what's known as a wells notice we've -- airport that means -- SEC's.

Enforcement division has recommended.

To the full commission that they bring charges against against.

Against the company heat he personally is not mention that in that that wells notice but.

You know that's pretty dangerous stuff with the SEC could theoretically could shutting down as a registered hedge fund which means he could manages -- money but he can't take an investor money but here's what we are right now.

Investors clearly are calling him.

As we -- capital.

And you know part of their sort of weighing whether to pull money out during the first redemption date which I believe is for every fifteenth.

Is whether they think this company's gonna be charged and what they think there's going to be an issue there in terms of major -- here's what we know.

Investors believe based on their conversations were that with the SEC capital.

That there's going to be a large part.

At these SAC officials are given these there was investors an update on this probe and that tell them that they they -- the the FCC's wells notice answered.

They are -- the SEC's response.

And there waiting whether or not they're gonna be charged formally then you don't know at least that's what they're telling investors.

On top of that the they're also saying and this is pretty key.

They're saying that they would cover any and all cost for the investigation.

Including a fine and that's where it gets sort of interest and a lot of these investors are telling me.

That based on their conversations with the -- would with officials in in at the Stanford.

Connecticut campus of SEC capital if they think there's going to be a large -- the number.

The numbers I -- will replace anywhere from 250 million dollars reasonable these are the numbers that are being bandied about among investors.

The something like -- 500 million something along the lines.

What Goldman Sachs had to pay to settle you know the because the SEC charges the commission charges on abacus about two years ago so that's what we are right now.

It is kind of interest being that -- and almost we have confirmed that he's you know.

It's a good party it's and it's a fun place to be I guess it's cold but it's cold here.

And his underlings are handling this this is a pretty much.

Of a pre octave the pre occupation right now going on -- SEC I -- VD.

It is a firm -- to trade a lot obviously.

But now they got this extra worry which is regulatory stuff and I could tell you a lot of investors are nervous and they really -- to know how much you'll find whether the fund will be shut down.

With a Steve -- will get charged -- another thing that a lot of investors say is that the indication they're getting.

From the SEC people is that they believe.

-- when will not be charged civilly as you know these -- criminal investigation.

Involving -- more Toma and -- the sort of and using potentially inside information treating a drug stocks were calling was.

Not mention directly but alluded to in the complaint to -- in the indictment.

That that is ongoing that's separate from what I'm talking about -- this is an SEC civil case.

Can't.

Point thank you.

Load More