they're ttying and steve cohen isarget and doing anything they can to get steve cohen.tatute is runningut they have until jy 20th of 2013 two months away to go after steve cohen. they're trying it increase pressure to get smeone to turn. lissa: speaking of pressure, i don't understand why matthew martoma is not flipped on him. he is looking at lot of j time. do they have al solid case? unless he is physically scared of steve cohen i don't understand. >> that is great point. you would think he would cooperate but apparently he is not. other thing i want to say real quick they're thinking of using rico, i like to say whatichard said about, against the entity, against thhedge n and not the individuals. that turns into a situation where they can extract a lot of money, $500 million, just using that hypothetically and, it's good obviously for the u.s. treasury. and --. melissa: would be more than that. >> in terms of cohen. that's a possibility. melissa: is that an effective strategy you think? >> i think it is a strategy. i don't think it is effective. back to marma. in mar

. >> you could argue steve cohen has already been destroyed. even if the government forever brings charges he'll be forever smeared by these allegations and even if they do bring charges, hedge fund guys would tell you they traffic in the gray areas all the time. that's the definition of the job. so when does the gray cross into the black. what makes everyday behavior become illegal? those questions are interesting. >> rose: we conclude with andre gregory and cindy klein >> that's a good question. i don't know if i have a philosophy about anything but i do believe that once trust an actor -- i fall in love with a actor, i don't audition them. and once i trust them i feel they know where to go. i read a wonderful article about mohammed ali. and he was with he was in the ring his trainer would say "i live them a left, i give name right." he never said ali was doing it, it was me. so i'm in there with the actors, in their bodies, in their souls. but i don't believe in telling themhat do. nibble them. >> rose: david barboza, bethany mclean, bryan b

but it's also become increasingly apparent that the government's end target is indeed steve cohen and s.a.c. capital. so it's all been building to a crescendo in a sense. and even though cohen has not, not even been charged, the government's ongoing investigation has already cost him a great deal. investors have pulled $1.7 billion out of his fund despite the spectacular returns and are likely to pull a lot more in the coming days. >> it would seem like steve cohen is operating with if not impunity, a certain sense of self-confidence, if he gets tagged with a $600 million fine, going to the s.e.c. and then goes out the next day and buys a second home in the hamptons and a $160 million picasso painting. do you, in your research, in your reporting on this, is there any sense of tangible fear with cohen himself or his associates, that he might go down? >> well, i think that the purchases, they would argue, are at least steve cohen's people would argue are an accident of timing. perhaps unfortunate accident of timing. i don't think they were particularly worried in the firm's attitude has

steve cohen got a subpoena, right?erally you don't subpoena targets, if you're a direct target of a grand jury investigation. my view is there is a dual track that this information's going on -- investigation's going on the. they would like the portfolio manager indicted for those suspicious trades back in 2008 who made the suspicious trades right before he had a phone call with steve cohen. they think that is key to what insider trade. that's their main focus. as a side thing, they're looking at potential rico charges and maybe closing down the fund. and that's what these subpoenas kind of give you more sort of -- it sheds more light that that is another strategy. i will say this, you know, here's the other thing that i think viewers should consider when they're following the story, so much of what we, what we're saying, we don't know the full story here. and i'm doing a book on the relentless pursuit of steve cohen, it's called "circle of friends," it's coming out in a month or so. i talked to a lot of former justice

they sent subpoenas to steve cohen the head of sac capital.vestigation didn't start yesterday. this has been going on since 2007. they bugged his phone in 2008, 2009, meaning steve cohen's phone. they have been, i would say relentlessly, meaning the government, both sec and justice department relentlessly pursuing him because this is what think believe. i'm not saying this is what i believe. they believe sac capital is firm that skirts the rules. the rules mean insider trading. that much of steve cohen's fortune, $9 billion in that fund, a lot, can't tell you how much they think but a lot of that fortune was developed through the means of doing insider trading or firm subordinates doing insider trading and him profiting being essentially walled off from that by creating this sort of compliance system that keeps him out of the fray while all the bad stuff is going on beneath him. that is the theory of the justice department. how do they take that theory and get a charge out of it? it is not that easy. we should point out that sac, people at sac

unable to escape the spotlight, legal battle surrounding steve cohen. s.a.c. a good mountain town. signals telling peter kelly now is still a great time to buy in. dennis: steve forbes and why the i.r.s. scandal is a perfect case for the flat tax. but then steve says that about almost everything. welce to the new buffalo... where new york state is investing one llion dollars to attract and grow business. where companies like geico are investing welcome to the state wheree. cutting taxes for business... is our business. welcome to the new buffalo. welcome to the new buffalo. welcome to the new buffalo. new york state is throwing outhe old rule book to give your business a new edge, the edge you can only get in new york state. to grow our start your business, visit thenewny.com ♪ dennis: good afternoon, everybody. >> good afternoon. welcome to a new hour of market now. i am lori rothman. steve forbes joins us today. ashley: the cost of looking more youthful. how about $1 billion. yahoo! is buying tumblr. promising to "not screw it up". lori: china is at it again.

i am almost on the side of steve cohen now. starting to feel sorry for him.e a half-baked drama and rip from the headlines, is everybody father getting that he hasn't been convicted? he hasn't even been charged. that doesn't matter. >> never matters, particularly in hollywood, does a lot, they convict a whole lot of people in a whole lot of industries. you think you're upset with this one, wait until the wolf of wall street comes out you talk about glamourizing these thing. it is interesting they do these things. when it is all said and done, a lost times people would not be on steve cohen's side but they come away, say, you know what he did, not necessarily was so bad but interest is way of doing that. there is s still a glamour aspet to it and night not be so bad if i could do it and get away with it. melissa: you say they glamourized it rather than making it a criminal thing. that is r very true. let me back up, harvey and bring you in.s is this fair? he hasn't been charged. he hasn't been convicted. we don't know if he has done anything wrong but hollywoo

kate, who is steve cohen and why does he get so much attention?>> reporter: as you just mentioned, tyler, he's one of the most successful hedge fund managers in the world. he manages $15 billion. also by head count his hedge fund is one of the largest out there. employs more than 1,000 people in stanford, connecticut. and because of the money they manage and their style, they're accounting for a major percentage of the market volume every day. it may only be 1% or 2% on a given day, but that's a signature chunk. >> why does this matter for individual investors? why should they care about what happens to him and his firm? >> why it matters to an individual investor is more symbolic than literal. there's a feeling that the class divisions are widening, that hedge funds like sac get away with all sorts of illicit behavior, or enjoy a more competitive tax rate on investment gains. although hedge funds were not considered to be accountable for the financial crisis, i do think there's a perception they might be cowboys, taking risks that others can't, a

they're neither confirming nor denying the existence of a subpoena to steve cohen and said to kind of keep your chin up. the matters at issue will be resolved they think within two months, a reference, of course, to a key legal deadline in late july. there's a statute of limitations in other words a limit on when the government prosecutors can bring fresh charges against the firm itself or steve cohen criminally which comes five years after the events at issue here. they don't believe they will be charged in connection with a key case here and essentially telling people to remain confident, scott, but yet not providing additional information and i must say the last day or few days ever since they issued an investor letter friday saying they're no longer cooperating unconditionally with the government and won't be able to communicate much going forward and reports this morning about the subpoena have really made a lot of investors nervous and i have to assume staff members, too. >> refresh my memory, kate, if you would. the deadline to actually withdraw from sac initially pushed back,

i'm not saying steve cohen is going to jail, facing a rico charge, 22 months in jail.ve away from what i understand about half his net worth at the time. he was worth a little over 2 billion. melissa: right. >> he paid, 1.1 billion and he was barred from the securities industry. you could see prosecutors wanting something like that out of cohen or sac. remember, drexel also went out of business. melissa: yeah. >> that was the firm, mike milken through his sort of activities in the junk wonder market, was known as the junk bond king was one of the most powerful firms on wall street. that is the semiplat. i can't say it is exact. i do know this, sac was the opening salvo. its bid was we'll close is. ac. we want deferred prosecution. steve cohen could some day restart a fund. melissa: yeah. >> that was their opening salvo. we know that government said no. so now it will be something else. we'll see. this is an interesting game of chess. melissa: it is. i like the way you kept going even after it sounded like you had been shot, charlie gasparino. thanks so much. >> that is

someone at sac or steve cohen himself could be forced.t they mean there material statements to signal to investors there are investors in sac capital they have a redemption period coming out in june. so in order to give those investors that the necessary information they have to know everything about the investigation and development. here is a development i don't know what it is but there is clearly a development. david: you have and at this for a long time and have seen hundreds of companies under investigation or under indictment. have ever seen a company take this as aggressive as a stance as sac has now taken? >> i know they mean against federal prosecutors. david: suggesting you not give full cooperation. >> have you heard of the words anything can and will be used against you and the courts of law? i am not a lawyer but when you are now being targeted by the federal government and something changes in these tonality and direction of the investigation you have to protect yourself. why did they put up the statement? like any regulate

. ♪ dennis: the witch hunt as some call it four sac capital steve cohen ntinues.s been hit was new subpoenas after he himself was subpoenaed last week over insider trading but the probe is five years in and me is running a house and now let's talk abo chief operating officer of monster crew spent jail time if e stock options backdating scandal a few years ago and i imagine you must watch says with interest you know, what it is like to be the lighing rod that law-enforcement come after you think it is a witch hunt? >> my pleasure. to a degree i think it is. if they could have indicted him already a thing they would have five years is a long time as i watched the events play out in the press it has been astonishing one week after another you would think they could not do that. we're getting what is going on inside the grand jury investigation almost daily like they try it in the press because they caot do that to the court room. i wonder if they can get a fair jury at this point*. dennis: i met steve cohen added charity dinner and the most unassuming quiet man. he i

melissa: he must not have anything damning on steve cohen. i want to ask you this. talked about that already. >> let me finish what i'm going to say. that insider trade they believe occurred, occurred right after a 20-minute phone call with cohen. we don't know what he has on him. we don't know. we don't know --. melissa: if he had something good to avoid prison? >> we don't know if, if he is holding out for zero prison, one year in prison, three years in prison. the charges mandate if you got convicted on charges, all of them he would spend about 15 to 20 years in prison. melissa: right. >> so maybe the government wants him to spend five. maybe he is saying zero if you want cohen. that's what we don't know. a lot, one of the interesting things is when you talk to prosecutors, a lot of former prosecutors involved in the galleon investigation and various investigations they're now in private practice, i'm talking to them because they're sources in my book how much of this stuff the press gets wrong. it is not easy to do. you know you're dealing with sources and, you

let's say steve cohen does get indicted or sac gets closed down, very possible.port rico charges. he allegedly has insurance on the fund, the money in his fund. so if, the fed said, you know, this fund was built up, it got to $15 billion and developed all the profits through ill-gotten gains he allegedly has churns that backs that up. i don't quite understand in what is the downside leaving money in there until you found out whether they're going down or not. whatever it is very smart people think there is a downside and they're looking to pull money out. david: charlie, very quick question, charlie. >> the bigger story though, let me make this point, quick. >> the bigger story not that they're pulling out. the bigger story that he is really thinking about closing sac down as a business. >> all right. >> that is pretty huge. david: let me just ask because it is a $15 billion hedge fund. outside investors represent about 6, $7 billion. half of it. could they survive with half of the money with all the outside investors gone? >> yeah, it is a different fund. you do

, at some point steve cohen will go and say, here's what we're willing to give you. eport that cohen and the sec put on the table. close down sac. defered prosecution. no one gets prosecute the. he would restart the fund and do a redo. i don't think they like that for a lot of reasons, but that came, those nepg shuns were going on when he was buying the art. i think that play ad little role. not a big role but a little role. i think this forces, remember what milken did. they were throwing everything at him, okay? they were basically threatening drexel with rico. they were threatening him with rico. he came to the table and said, give you have my net worth. milken was worth 2.2 billion. gave them 1.2 billion. agreed to 22-month jail sentence. drexel was shut down over the threat after rico filing. credit. as any wall street firms knows, sac is a little different. what i see from the situation is what i see. don't think it is going to happen. they say they're innocent. this is where i see this going possibly where you work out a similar deal. steve cohen gives back, re

will sac's steve cohen keep it all in the family?e gasparino, what the future holds for this hedge fund. melisssa: economist smackdown. why they're calling out "new york times" economist that never happens withivil. krugman. that is shocking. take a look at the 10-year as we head out to break. lori: i was glancing down up 2.11% up 10 basis points. with a big rally in bonds they're selling treasurys. that consumer sentiment report really setting the tone. the economy is looking better. let's get out of the safe haven. back in a moment. >> i'm cheryl casone with your fox business brief. there is post-memorial day rally on wall street with the dow and the s&p 500 on track to close at new record highs. take a look at the dow right now. we're higher by 120 points but we're well off session highs. >>> shares of lender processing services are on the rise of news of a buyout. fidelity financial is buying the mortgage services provider for $290 million for cash and stock. fidelity plans to combine lender processing with its business. thomas h

dennis: i met steve cohen added charity dinner and the most unassuming quiet man.waggering that the fed takes the down by the targeting him because he is big and successful? >> i would think he makes a good target because the firm has high returns and there are people tied up in the investigation. once that becomes the headline and he is out there to be more successful than it is almost like it is an impersonal but it comes in on you and it is a game of wind or lose not justice. dennis: the highest is pounded down look at eliot spitzer of hank greenberg with aig that case never went anywhere but they got rid of him than the company went into the trash. teasing sec officials are driven by people are being hurt or what good headlines to build my career? >> i mentioned this before there are good people and bad people in every place but there are enough in the justice department letter therefore career purposes. wes justice but could i get the seven figure white-collar job for what is my next political office to make sure that what i need to get them. dennis: nothing l

could you see the same thing happening here with steve cohen?, i suspect that the negotiations are going to start on one end with mr. cohen offering to shut down his fund -- >> reporter: which is what he did already. we should point out, he did that already. >> okay. that is what he hopes would be the resolution. he's no longer running a hedge fund involving other investors. the government side, they probably do want a conviction, a plea from either sac capital or mr. cohen, and under rico they can indict them both for a conspiracy to run a rico enterprise. that could involve sac alone being indicted or mr. cohen alone being indicted or both. >> reporter: well, we're going to have to leave it there. we don't know the answer but, john, thanks for coming. one thing about john coffee, you start out confused, after he talks to you -- liz: you get it. just an end run around what could be a statute of limitations -- >> reporter: on the regular charges as john pointed out. liz: thank you very much, professor coffee and charlie. closing bell ringing in

they are focusing on steve steve cohen and the fund.is, the government wants to shut down the fund. this is my reading. i am just laying it out. they will not deny, they will not confirm it, they will not go near it. it becomes a game. is there a racketeering charge? this is the legal and game which has yet to play out. it will be interesting. liz: thank you very much. twenty-nine minutes before "the closing bell" rings. dow jones industrials on track to close at a high. we show you how to find the stock that has an expected 20- 20-50% growth in the next year. we have home prices jumping the most in seven years. is that a good thing? is it time to invest in your second home? we show you the best places to buy a vacation home. coming up next. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, onehing that hasn't ch

the government's insider trading investigation into steve cohen's s.a.c.al may be getting more serious. kate kelly with the latest angle and details. >> things have heated up significantly in the last few days for s.a.c. capital. the $15 billion hedge fund under investigation for insider trading after weeks of negotiations with the department of justice over a potential settlement that would have warded off an indictment ot firm and its founder, steve cohen. cohen instead found himself in recent days served with a subpoena, asking him to testify about his own company before a grand jury. whether cohen will give evidence or take the fifth amendment remains to be seen. but the breakdown of settlement talks has changed s.a.c.'s tone from confident to more uncertain. on friday s.a.c. told investors in a cryptic letter that its cooperation with the government was no longer unconditional. and that it wouldn't be able to post them as frequently on its legal developments as it had in the past. it has also told employees that it won't comment on subpoena stories "n

subpoenas by multiple senior management members at that firm, in the same round of subpoenas where steve cohen, the firm's founder, was asked the to testify before a grand jury, we believe, last week, he received that. and in addition, thomas conhenny, the president, steve kessler, and phil villhauer were also subpoenaed. so things are heating up in terms of the government's probe of s.a.c. and whether or not they going to try to talk to some of these senior officials. we get the sense that they're building a case against the firm broadly. perhaps not as much as steve cohen personally, given that he may be havocked to testify against his own firm. it's not clear whether or not he will testify or if so, whether he'll take the fifth amendment or not. in addition, we've learned that there was a second employee call with s.a.c. officials held yesterday, that would be the second this week, and unusual for a firm that tries to be communicative, but at the same time, has not been wanting to comment on what may or may not be going on in the legal investigation. yesterday, i'm told, president tom conhe

i feel they may not have enough to get steve cohen. they think. it's what they think. they take the fifth. if he takes the fifth then, you know, they feel like they have something in their cap that the can indict him on because he is hiding something. this is kind of a cat and mouse game. but they won something along th lines of what they get of michael milken. they won a huge settlement with him. forced to give away half of his wealth. he gave when billions, spent a short time in jail. nine years. and he was out of the business. i think, this is what i think. and think they're aiming for th same thing. maybe give away half of his 9 billion. the out of the business altogether, who knows. there are parallels what happened in the late 80s, early 90s. liz: he came back swimming, has done very well. you always have the picasso. >> the junk bond market has done wonders for the world. take me out of it, there is something wrong here. liz: please run down here again. 27 minutes before the closing bell ringing, we have survived the dotcom bubble and the credit bubble, so what

down to talk about how the government may be tryin to find new ways to go over sac capital head steve cohend of the shot heard around world. at three the printer, the first working gun, yes, you are looking at it, liberator which fires. we thought we would bring in th company behind this. yes, is controversial. the estimate is incredible. the ceo in a fox business exclusive coming right up. ♪ [ femalannouncer ] from more efficient payments. ♪ to more efficient pick-ups. ♪ wireless is limitless. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ [ female announcer ] from meeting customer needs... to meeting patient needs... ♪ to wireless is mitless.s... liz: breaking news on twitter. in the wake of their recent hacking scandal, the twitter packing scandal,

liz: troubles for sac capital hedge fund continue as ceo steve cohen is subpoenaed and sources say criminales may now be filed against the firm. is a settlement likely or are both sides ready to duke it out in court? ♪ . you make a great team. it's been that way since e day you met. but your erectile dysfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you cabe more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity do not take cialis if you ta nitrates for chest pain, as this may use unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immedte medical hel for an erection lasting more than 4 hours. if you have any sudden decrease or loss in

cnbc reports sac capital founder steve cohen told investors the hedge fund would impose compensation clawbacks on employees who break rules with stock trades. cohen says it's to "deter conduct that threatens the integrity of the firm." sac has been the subject of insider trading investigations. intel's new leader may switch things up a bit. company veteran brian krzanich takes on the ceo role in two weeks, after paul otellini retires. krzanich is expected to steer the company in a new direction. analysts say he may turn over some production facilities to other chip-makers, as the industry switches from pcs to tablets and mobile phones. intel is first in the pc market, but has been slower to enter the mobile world. warren buffett has some encouraging words for working women. in an essay out this week, mr. buffett says that women's success in the workplace is critical for the prosperity of the country. meanwhile, the famous billionaire also launched his very own twitter page. we're still waiting for our retweet. i-n-g sold a lion's share of its stock in its ipo. i-n-g raised $1.3 billi

potentially against steve cohen. harges against steve. >> gangsters, red necks and cheer leaders. >> later on, the gold rush is over. market watcher says thathe bubble has burst but there is a new one forming. we will talk about both coming up. les schwab, we've committed to setting the bar high by going low. tdd# 1-800-345-2550 like offering schwab etfs tdd# 1-800-345-2550 with the lowest operating expenses tdd# 1-800-345-2550 in their respective lipper categories -- tdd# 1-800-345-2550 lower than ishares tdd# 1-800-345-2550 and vanguard. tdd# 1-800-345-2550 and with all our etfs commission-free tdd# 1-800-345-2550 when traded online in a schwab account, tdd# 1-800-345-2550 it leaves our investors with more money to invest. tdd# 1-800-345-2550 something they've come to count on with us. tdd# 1-800-345-2550 so as investors continue to set their portfolio goals high, tdd# 1-800-345-2550 we help keep their costs of investing low. tdd# 1-800-345-2550 give us a call and open an account today. tdd# 1-800-345-2550 carefully

capital, meanwhile, and steve cohen. the government issuing more subpoenas in the insider trading investigation. mary thompson now with that story. >> maria, three executives at the hedge fund receiving subpoenas sent out as part of the government's ongoing insider trading investigation of the $15 billion hedge fund. those receiving the subpoenas, s.a.c.'s president thomas conheeney, chief compliance officer, steven kessler, and head of trading, phillip villhauer. all asked to testify before a grand jury. last week, the government subpoenaing the firm's founder, steve cohen. unclear if they're building a case against him or if they want him to testify against the firm he founded. it prompted s.a.c. to issue a letter to its clients, telling them they would no longer cooperate unconditionally with the probe. so far, nine former and current s.a.c. employees have been charged as part of the investigation, five pleading guilty. kate kelly reporting earlier that the firm did hold a call with employees yesterday to talk about t

deadline, at the end of july, by which federal prosecutors have to bring any criminal charges against steve cohenonnection with a prior case. so, two interesting elements to this investor letter today. they also said they don't believe the changes in posture that they're adopting, mandy, will have a quote unquote financial impact on their fund. so, essentially warning people. they're not necessarily playing nice guy with the government anymore, where as up nm nuntil they've been entirely cooperative, they said. and they are saying they may not be able to say much between now and july. >> but kate -- i think they said it's not unconditional, right, so, i just -- >> correct, that doesn't mean they're not cooperating, but it's not unconditional, so, what the conditions are, of course, we're left to wonder. it does give the sense that things are heating up between the government and s.a.c. and s.a.c. feels that it needs to take a toucher stance for whatever reason, whether that's just to gain some negotiating leverage or they feel that they've been put more on the defensive as a result of new facts t

held a phone call around noon today to talk them through the latest headlines which together that steve cohenved a grand jury subpoena just this last week. would have tied up the loose ends that remained in terms of possible indictments of the firm or cohen himself. remember there is going be an end point to all of this. so, they are trying to express confidence. although obviously the events of the last few days saying that they were no longer going to cooperate. >> that was a big change. >> i talked to a number of criminal defense numbers that say this makes absolute sense. they have been supplying documents for months and they are getting nowhere. they have a total of 410 million right now. >> that's very interesting. kate, you will be watching it all day for us. and now shareholders voting right now on whether to split the role as chairman and ceo. i guess the results, we will know them about 24 hours from now? maybe less? >> shareholders heading down to tampa for tomorrow's meeting. >> shareholders have been getting returns. jp morgan's return was second only to wells far go. it is stock

a lot of concerns about the legal issues facing them and if steve cohen is going to be charged with the ongoing insider trading cases. there may be clarity on that at the end of july, but at this point, investors remain nervous and i've heard that s.a.c. may be keeping extra cash on the sidelines in anticipation of redemptions, melissa. so, that may be a factor in diminishing the returns a little bit in the sense that they have less capital to put at work an leverage. unclear as to what went wrong for them in april. >> kate, thank you very much. and the back drop of this is some questions -- >> well, yeah, you just have to wonder what's happening at s.a.c. capital and -- i don't know if there's upheaval there now -- >> right. >> and certainly -- i don't know. i think they've got to be absolutely certain to cross their is and dot their ts on everything. >> 5% nothing to write home about. >>> coming up next, the biggest movers of the week, plus, apple sees its best two weeks in four years after the company finds a new way to reward investors. is the stock finally bottoming? >>> and a new

really like to be able to trade on any sort of this information but when it comes to somebody like steve cohen who has a hedge fund i don't particularly care if he's paying people a lot of money to get some good information that he could trade on you know he just paid six hundred million dollars to settle a lawsuit with the f.c.c. over insider trading not that he admitted any wrongdoing of course but you know when markets move all right there's money to be made and we're going to move anyway so why shouldn't people with a little bit closer access to that information be able to trade on it well obviously as you leave on that note because we got to move on to our bankers cup following up from last week. the kentucky derby came and went over the weekend on friday we announce that we're going to have our very own bankers cup and we'll actually have a race in just a minute let's let's recap what happened last ok we have two horses here bernanke his last stand might just be the final stud in his line because an errant statement about sterilization was unfortunately taken literally and he has some to

dalio one point seven billion steve cohen one point four billion by the way half of these companies didn't need to beat the market last year it doesn't matter they have the structure that is independent of any real performance but over a few money managers or has funds beat the market not even warren buffett is beating the market at this point i think ninety five percent of all money managers fail to beat the market but they create benchmarks. and when they go to clients and these are typically very wealthy people who either inherited the wealth or have monopoly positions and by gaming the government or gaming the copyright system or just outright thieving or a copyright manipulation or a monopoly position of software they after the couple of billion dollars you become kind of stupid so you give a bank like j.p. morgan your money and they say we created a benchmark is called the jamie diamond i'm a frickin rip off artist benchmark and by that benchmark we're beating the benchmark we're now being the market we're doing lousy against everybody else out there every asset class including gold

getting noticed which is probably not good for mr dimon at all and embattled hedge fund mongul steve cohen continues to face pressure for possible criminal insider trading charges this after he recently had to pay six hundred million dollars to the f.c.c. to settle civil charges borne of senior executives were given subpoenas to testify before a grand jury many are looking at this case as a bellwether for the largely unregulated hedge fund industry it seems the top dogs in this finance sector are not too big to fail and finally japan's money print money printer and shiva said he would do more to her volatility as domestic bond market commencing the most aggressive program in the history the yen has more than thirty two percent of its value relative to the dollar and bond yields have a spiked the most in decades with a new stock index is also up substantially until recently that is when it crashed in eye watering at seven point three percent in a single day as a tough gig for central bankers who want to have their cake and. here's what's in your prime interest. as you may be well aware last

the hunt for steve cohen. she is live in chicago with us today. good to see you bethany. welcome back to "power lunch." let's start out with the letter. i know that sac has beefed up compliance as you point out well in your article. going from three emply es to better than 30 employees. >> well, i think it shows two things. i think that sac needs to placate investors. you have seen the nervousness that has been created by the government investigation. that's a lot of money to be pulled out of your hedge fund. but i also think you might read something else into it which is that he may end up escaping from this afterall. >> you know what? i think i just lost bethany's mic but we will work on that and get back to her as soon as we can. it's a terrific article worth reading. we're going to take a quick break. what about a new house? would you like one? what about a boat? in seattle, you can have both. the power house is coming up next. first, facebook up big. led by 4.5% on the day. [ lorenzo ] i'm lorenzo. i work for 47 different companies. well, technically i work for one.