Juggling Dynamite

The finance world has many ultra wealthy “players” who obtained their billions through illegal acts for which they have so far not been held accountable. Once they have billions they are then courted and promoted by the media and social elites as admirable, genius, business leaders. They also can hire the most aggressive legal teams to protect them from meaningful penalties or personal liability. They also buy favor from politicians and regulators.

In a long list of allegations stemming over many years, last week Hedge fund titan Steven Cohen’s firm SAC finally agreed to plead guilty to securities fraud and pay a total fine of $1.8 billion. Which sounds big, but since Cohen is now a multibillionaire, 1.8 is small penalty to pay for massive personal enrichment which so far remains in tact.

Frontline published this never before seen video of Cohen during a two day 2011 deposition as part of a civil lawsuit by Canadian insurer Fairfax Financial Holdings, which claimed that SAC Capital had conspired with other hedge funds to spread false information in an attempt to drive down Fairfax’s stock price.

In these clips the financial “genius” Cohen asks for an explanation of the basic Securities and Exchange Commission rule that prohibits insider trading. See Rule 10b5-1.

At one point, he insists that he takes the issue of insider trading “very seriously,” but then admits that he doesn’t remember if he’s read Rule 10b5-1. Here is a direct video link.

Danielle was a guest today with Kerry Lutz on The Financial Survival Network talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.

This week a conversation with lawyer Bernie Keating (Ares Law) on his life path: from iron worker to undergraduate, philosopher to economist, Jesuit priest to personal injury litigator, spouse and father. Relevant for all of us young and old–still working toward what we hope to become. A discussion on learning, education, passion, faith and hope.
Here is a direct audio link.

“There was a time in North America when post-secondary education was thought likely to secure a well paying job and commensurate lifestyle. Over the past 5 years such ideas have increasingly come into doubt…”