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You can see the trade on that one RE turn out of the power money Wall Street is holding its breath.
As SEC capital braces for -- billions in redemptions.
It is living under a cloud of insider trading suspicion courtesy of the -- there is one catch though.
Neither SAC north head Steve Cohen had actually been charged -- anything criminals still if customers pull their cash.
SEC can be forced out of business based on suspicion alone.
Are on task Charlie Gasparino is one of Wall Street's most knowledgeable observers he's been following the SEC case from the beginning he's also written a new book circle of friends.
All about the slip that crackdowns and insider trading networks we also a judge in -- an -- -- fox -- senior judicial analyst.
He's also your nice to have both -- -- to wanna start with you because I -- macbreaking I was airlines we do we look it's fantastic.
You are breaking news on this right what's going on what you're never -- as.
We were talking.
You know politically -- on the early show that there was a chance of them going to a family office would -- saying right now that means.
They just give back the cuts for money they manage their -- and Steve Cohen's own fortune are saying that's not gonna happen.
No plans to do that right now but -- leave it open the door the door.
To do in the future they will not released released a redemption notices or how much do we get the redemption tallies.
But what sources tell on the Fox Business Network.
We believe this number is significant it's probably leaving SEC capital by my estimates and like I said these are estimates right now would not getting any word from inside the company.
With about a billion dollars or less of outside customer money so it's essentially still a huge hedge fund right.
Nine billion dollars of of the company money of Steve Collins fortune and some of the traders a billion or so less than a billion of outside cash.
But still a lot less than -- -- -- visitation and bodily you know what that means.
That means they have to -- they're saying there's no plans for layoffs but they're gonna have to do what they have to scale back because that additional -- that outside money.
He's the charge fees they can't do that enormous fees.
Judge and I -- the question Mattel has been raising a week that is such a -- one is.
Is this -- error I mean the government is essentially bullying them out of business and so far they haven't charged them I'm thinking Arthur Andersen.
Well as as Charlie points out in his terrific piece in this morning's Washington -- New York Post excuse me Charlie.
That government doesn't care if it's unfair in part because that congress has immunized from liability.
The people in the Justice Department who are scaring away Steve Collins clients look when Arthur Anderson went under under the corporation was indicted.
The corporation pleaded guilty it paving measly 500000 dollar fine and it went out of business.
Going out of business put 85000.
Innocent human beings out of work.
The guilty plea was then reversed by an appellate court but there was no Arthur Anderson left after the reversal nor was there anybody for those who lost money.
Who lost jobs who lost wealth to sue.
Because Justice Department prosecutors and FBI investigators are immune.
From the consequences of their behavior so are they trying to put Steve -- out of business.
They don't have to answer each it would be effective this veto puts -- -- -- business -- -- answer the question better than -- but if they do put him out of business and there was nobody for him to -- Did you you're right about that we just back up and just give the Justice Department side of the story they believe that there's been you know.
Illegal activity at this company.
We should point out that they've been investigating.
SEC capital and Cohen and since at least 2007 I put this out my book circle of friends is gone on for years now having a big you know hit -- home runs in terms of in terms of finding of wrongdoing at the firm yeah I mean they've they've indicted at least two major portfolio managers there's a slew of others that -- have been indicted of or cooperating.
You know -- -- to get leniency so there's -- there's more than just a little smoke -- the but the real question is.
Is that all is these -- that this -- -- bad stuff you see insists does it is a systemic.
Doesn't mean the whole company is -- as it mean that Steve -- himself from this phone has been tapped.
Has he is he a criminal and I will say this OK if they got something out of these clearly on the investigation.
It's about time that you could charge him.
Or -- Malone because what they've been doing with this constant drumbeat.
Of subpoenas -- guy just got a grand jury subpoena right around the time of this -- redemption date.
We know about that by the way late no no no no no we shouldn't greatly showing I know about it yet because he -- federal rules of criminal procedure.
Make it a crime a crime I don't judge for someone in the justice depart right judge we know about this to leak it judge we don't have to be conspiratorial conspiracy conspiracy -- Why do you think it was -- I think that it probably was leaked in order to weaken and damaged he can't look at some point in this scenario the Justice Department investigating SAC.
SEC was cooperating giving the DRG everything they want -- at some point Steve Collins said enough is enough.
Two days later these grand jury subpoenas -- showed up so if something is going to happen I think it's going to be pretty soon.
But it hasn't happened before redemptions were do you.
And Charlie you have made the point that that was by the it's all I would just say this if you're the -- the government would say you know the wheels of justice turn slow you know we're looking to turn a couple witnesses.
There's two guys indicted Matthew -- -- -- and Michael Steinberg MacKey went on for a powerful commander Steinberg current fulfillment to both indictments are trading.
They would love them to turn evidence again they want and they -- isn't that interesting and what does it tell you that they put all these pressure on these two guys who could go to jail for a very long time and -- -- -- -- decades what you might.
And what you know once you think that if they cool it implicate.
Someone higher up the food chain that they would do that -- -- -- eager -- have been easier they well either they will implicate somebody higher -- the food chain.
To save Iran next or there's no bear ran you know what what the Justice Department trying to get them to do they can't don't listen we're we're reading the tea leaves here we're not in the room it's you know I could tell when I took the Justice Department officials they say what you guys and -- and -- the stuff wrong.
You know -- it's tough when you're outside but.
I just would say this the grand jury thing was cut ups -- because.
You know this that they knew that Steve Colin if they -- would be digging the grand jury subpoena was never gonna testify.
That is what they do they leak it.
I mean and they -- it right at that time I mean by the way can get its grand jury subpoena generally the judgment -- -- not generally the target of the probe.
So you've leaking a thing against a guy who's not a target we -- out thanks thanks to both of you for coming on interest in the following well would you nurture our -- judge.
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