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A predawn arrest making huge waves on Wall Street we've got video for yeah it was shot.
By the Wall Street Journal and the video shows Michael Steinberg a senior manager SAC capital.
Being arrested and taken into custody by FBI agents Steinberg is accused of committing insider trading regarding Dell and Nvidia's stock.
In exchanges that took place in 20082009.
Now this is one of the US government's biggest insider trading case is yet.
But is this crackdown going far enough former Delaware senator Ted Kaufman sat on the during the financial crisis he has been a champion for consumers and he joins us now on a Fox Business exclusive thank you again.
For being here senator.
I don't have fun for me I don't know if -- caller discussion roughly ten days ago when the SEC first announced a 600 plus million dollar settlement with SAC.
And you and I both took issue with the fact that -- see where this man has been arrested work.
-- had to admit or deny any kind of guilt right it would appear.
The US attorney here in New York isn't buying that and is going after.
SAC is it enough.
Well I think it's great I think what -- for -- has done in the sub industry New York is is a model for how we should be dealing with some of these business related crimes.
The he's had a number of insider trading cases they've they've had hard cases Michael Steinberg he's innocent till proven guilty so I can't comment on.
On what his situation is but.
They've done a great drama that the question is why have we had so little a two questions one is why we had so little.
And the way across security criminals regarding the mortgage fraud and the second thing is why we continue to have settlements where -- people -- not.
Admit they have wrongdoing.
And I and I agree that this man is innocent till proven guilty but let's talk about SAC neither admitting or denying guilt.
Where is the accountability.
On Wall Street has any firm been accountable whether they be a hedge fund.
Are whether they be one of the commercial institutions.
That help bring about the financial collapse.
Well we have had you know I just Spacey had to admit wrongdoing but after they were involved in money laundering and drug and I think there's some only like one point nine billion.
And the one good thing I had a one positive thing that's coming out of that that's new is.
The SEC actually.
Refused to -- -- -- Standard and -- at least that's what's reported the paper.
Refuse to sell a standard -- -- standard poor's would not admit wrongdoing and are actually gonna go to trial.
Which is something that -- that I think you know we should have been doing all along if they wanna -- wrongdoing that -- If you go out and you committed a crime any other crime in this country and you do a plea bargain you don't get as part of -- plea bargain say well you know I really did nothing wrong.
But that the judge.
-- is reviewing the SEC this is a civil settlement the SEC can rise against SEC actually out refuse to accept part of it about 606 million dollar part of it right.
It doesn't sit well with him he says.
But right most of these guys are that are that most of these cases get through -- I know raped a freight cars also to the same thing but most of the -- -- for exactly.
-- -- -- -- Yeah no but they've been doing for a long time it is not some -- -- -- and now I think it's been ten.
Over ten years that they've just been -- links.
Cases without admitting wrongdoing.
And the probably have Adam as I was down in the senate when we went through Dodd-Frank.
And I a lot of the a major CEOs of banks and major executive banks came down said we didn't do anything wrong.
Now Adam I think the numbers up to 64.
Billion dollars in settlements.
You don't -- 64 bit -- billion dollars were the settlements.
And not be able to find who did it and the other thing is you know those settlements and not being paid by the executives those settlements to be -- -- the people that did the -- the mistakes.
They're being paid by the shareholders it did the system just thanks.
And I think that that what they're doing in terms insider trading is a better example why not bring.
Cases against individuals.
Who are involved in some of these incredible things HSBC.
They admitted they did money laundering.
And in conjunction with the drug crimes they're gonna find a single person to -- are your company to prosecute it makes no sense.
Says so let me give you the last word on this your guys your riled up about it I have friends who work on Wall Street who are furious that people -- Italy by the rules get away -- I understand too that we have these two cases federal judges saying no we're not gonna accept these civil settlements without some kind of culpability.
Is it really going to change or is it gonna take some kind of uproar from the public to change it.
Off I think why -- I think things -- started changes there's a lot of things going on I think they JPMorgan Chase.
A lot of them whale problem and then and the meeting in terms -- investigation showed that it was like.
Keystone cops I think the lead -- scandal.
We showed that that that people were actually -- dealing right within the bank.
I see the number of people come out George -- talking about the banks.
It's all part of one big thing I think -- either move forward.
I really do believe that -- mama mama I'm an optimist I really do believe we're gonna get some different actions I think it's really really.
Good sign that on the S&P case.
They decide to go to trial as opposed to settling saw Bob I am optimistic I think we're we're beginning to turn a little bit of -- -- Ted Kaufman former senator from Delaware we appreciate -- joining us on -- and this is an issue that a lot of people want to see -- -- and it's grateful I'm grateful that you've been here with us.
Thank you -- --
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