and could steven cohen end up behind bars? >> once again it's all about the economy and we have full coverage of the number where the economy stands, the impact on stocks. >> volatility is very definitely back in fashion. now up almost 25%. >> these are massive moves in the foreign exchange markets. you very rarely see them. the ten-year is on the move as well. 2.0. 3%. gold rallying again today on the trading session. a lot of major stocks on the move as well. josh lipton has a lot of that on the floor. >> listen, it was a pretty quiet day this morning. then around noon eastern we really began to pick up speed to the downside. as you mentioned, traders saying you have to pay attention to the currency markets. it's right around that time you saw the yen strengthen against the dollar. you see the dow down 87 points. the dough d did best. if the dough does close down today, that would be the first three day losing streak. back to you. >> thank you very much. we are turning our focus now on what we're calling the four pillars of

they manage most of steven cohen's personal fortune as effectively a family office even though insiders is in the works. they continue to raise external money and operate as a full pledged hedge fund in the markets but much will depend on the legal status of cohen and other top officials who have been subpoenaed to testify on allegations of insider trading at the firm, ahead of a couple of late summer deadlines for filing new charges against cohen and others not already tied up in cases. sec has not kept up with the past outperformance either, returning 6% year to date through mid may. numbers through the end of may are not available yet but it's unlikely they've made up too much lost ground but you can't rule anything out with sec. >> do you have any idea from the people you talk to, your sources as to what steve cohen's psyche is right now? everything that's swirling around, the fact he's likely to face a large number of redemptions and where he could go from here. >> from what i understand he's very frustrated. he and the firm always maintained they did nothing wrong. there doesn't l

they were hoping for someone to testify against steven cohen.nd if they're going along this line, that means they don't have that. so this is going to be very tough to prove. i mean -- >> is it kind of like a clutching at straws because they haven't anything else? >> exactly. this may work in a drug courier case where the guy should have looked in the brown bag and should have realized that the briefcase had drugs. but this really does not work in a complicated trading platform with compliance officers, with different levels of traders, where there's different flows of information. and in terms of changing the trading strategy, that happens all the time on wall street. so this will be real tough to prove, i think. >> and i will say this, brad. the attorneys that are working on this case, from both the s.e.c. and the manhattan u.s. attorney's office, are up to this task. i have a feeling that they're going to bring their "a" game, and that -- even though they may not have direct evidence, they are going to bring whatever they have to bear in the

the firm's founder, billionaire steven cohen, has paid a record $614 million in the scandal, but he has not been charged. sac reportedly remains open to investors. wells fargo is settling a discrimination suit with housing agencies across the nation. the national fair housing alliance and 13 of its members will get $27 million to settle the complaint. it alleges the bank favored white neighborhoods during bank-owned foreclosures. wells fargo will also pay over $11 million to the u.s. department of housing and urban development. it's a tough week for chrysler. the national highway traffic safety administration wants chrysler to recall nearly 3 million older jeep models because of a higher rate of fires in rear-end crashes. chrysler is fighting it, saying the cars meet safety standards. "their concern is that the recall goes beyond what would normally be expected of auto companies. they're saying if this recall stands, they could be subject to a variety of recalls for which they're really not at fault." that was alan baum of baum and associates, who adds fighting the government could brin

. >>> joining me now, katrina vanden heuvel, longtime boss at "the nation" and steven cohen, professor emeritus of russian studies. and author of the book "soviet faiths and lost alternatives:." steven, where are we in terms of the tensions between these two countries? it doesn't feel like it's going in an excellent direction right now. it has been bad for a while. now we're talking bad plus lots of weapons flowing into a volatile region. >> she used to be your boss at "the nation," now she's my boss at home. this is the situation you put me in? leaving aside guys who steal super bowl rings and american presidents who arm people who eat human organs, we are either in or on the verge of a new cold war with russia. that's the reality. the opportunity represented by these photos of these two leaders together is this. that the combination of what happened in boston, the evidence that the kind of terrorism that's afflicted russia can afflict us, plus the syrian crisis which afflicts russian national security and american national security, has brought these guys together in what might be th

one of the theories that steven cohen may well get rid of the public money he manages, as some other big hedge fund guys have done in recent years. what do you say and what have you found? >> there are lot of advantages, especially when it comes to regulators. they're private companies that manage with family's money. more recently they have become very popular with hedge fund billionaires. george sore ross turned his fund into a family office, so did carl icahn and stanley drubmiller. now, family offices, they get a special exemption from dodd/frank. a lot of -- it means that family offices are not classified as investment advisers. they don't have the same disclosure requirement or rules. the argument is that family offices, they don't manage other people's money, but the definition of family and family offices is very broad, as long as you have a common ancestor, you're family. it includes formal spouses and spousal equivalents. employees can also invest along with certain trusts in charities. >>> they may have to take notice. >> robert, thank you very much. >>> sue, down to you.

and could steven cohen end up behind bars?t's all about the economy and we have full coverage of the number where the economy stands, the impact on

security agency's massive surveillance program code named prism for more on the story enjoy my steven and cohenexecutive director director of the national whistleblower center thanks very much for joining us here on r t so edward snowden now is sort of missing in action he checked out of his hotel and nobody knows where he's gone off to except maybe a couple of people where do you think this story is headed next. well i hope it's heading in a good direction i hope people in the united states are realizing that he's a whistle blower that the information he provided was a public service and that whistleblowers like him should not be prosecuted and retaliated against that's why i hope it's gone over i don't think it's going that direction where do you think that or do you think it's going that you like think the government is going to charge him probably under the espionage act and they're going to try to make an example so others who have information about wrongdoing and crimes in our national security system are intimidated and don't blow the whistle. well if the twitter verse is anything to be

officials are reportedly investigating whether sac steven cohen purposely avoided learning about alleged criminal activity at his firm. if so, probers plan to ask whether that could form an action against him. one of the arguments in defense of steve cohen has been it's a large firm, it's structured in siloed so there are lots of different portfolio managers that run their own portfolio, they do it on their own and he's the wizard at the top but because of that structure does he know everything that's going on below and, therefore, what does that mean if he doesn't. >> but the crux of the story seems to me they set it up to ask well if he set up to never really know, we can still prosecute him. doesn't that seem bizarre? i mean, come on. >> to me, criminally that makes it very difficult. it makes it -- having said that, yesterday we got news of the corzine case. the corzine case is a civil ftc case. >> that's a slam dunk. >> that's not a criminal case, that's a civil case. the allegation in that case is he failed as a supervisor. >> de. >> is there a civil case related to be brought to s

and steven cohen's sac tells employees it will survive what it calls significant redemptions.uawk box" begins right now. >>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. markets are our focus this morning because the dow is coming off its third biggest percentage drop of the year. all kinds of crazy things, jim cramer was pointing out this morning he was watching the charts and there is nothing good to see. the dow, nasdaq and s&p 500 all closing at one-month lows. this was a broad based sell-off yesterday. all ten of the s&p 500 sectors closed down. today, the dow is going to try and avoid its first three-day losing streak of 2013. right now, u.s. equity futures are indicated a little bit higher. they're up by about 40 points. but if you'll look through the numbers on this, the dow was below 15,000 for the first time since may 6th. this is its worst two-day drop since november. all of these guys, as we mentioned, ending at one-month

authorities the right to spread innuendo and fear and break up a hedge fund like they are doing to steven a. coheneven been charged yet. all those stories and much more coming up on "the kudlow report." beginning right now.

authorities the right to spread innuendo and fear and break up a hedge fund like they are doing to steven a. cohen. maybe he is guilty, but he hasn't even been charged yet. all those stories and much more coming up on "the kudlow report." beginning right now. >>> first up, new jersey. governor chris christie today calls for an october 16th special election. he's going to replace the late u.s. senator frank lautenberg, and the decision begs the question, why send voters to the polls just weeks before he faces his own re-election? or might he be smart as a fox on this one? and who is going to be replacing mr. frank lautenberg. anyway, let's go to ace political reporter, cnbc contributor, robert costa of the national review. bob costa, i don't know. if you keep the turnout down, maybe this is a cracker jack, very smart thing that christie is doing. >> we'll see where it's going to be very tough, though, for republicans. because it's going to be an abbreviated campaign. the primary is going to be in august, the special elections in october. who has the money and the name idea on the gop side to really

quarter in the hedge fund's history, investorses must decide today whether to pull capital from steven cohen'sirm. sac insiders are expecting significant redemptions, perhaps the majority of the $4 billion in external capital that hasn't been taken out already. if that happens, sac could become a de facto, a family office, a fund managing only. it's all money been insider money. >> i think they were talking about that, anyway. at least that's been the reports, that there's speculation they would want to do that because then the government gets off their back. this is not that people are saying, well, i'm uncomfortable being at a firm that might have questionable perhapses, it's the performance. i mean, if the performance was still great, they would be looking -- >> there's probably a point when you wonder. the government has been so aggressive, there's probably a point when you wonder if that's going to hamper then at some point. >> 40% last year, i don't know if anybody would be taking their money out. >> maybe. i don't know. the government has been so aggressive and probably looking at that

there's been talk about willful blindness in terms of going against steven cohen and sac.hen it comes to people like senator, ex governor corzine, it seems like justice, the blindness of justice isn't so blind. i don't think willful blindness is going to be the vehicle they want. but they will never give up trying. but when it comes to friend or foe, obviously foe, hank greenberg, foe, corzine, not foe. and that's a little bit scary because whether it's the irs story for the teeth of going after people that they choose or don't like, that's also a bit disturbing. back to you. >> rick, thanks so much. speaking of which, new york fed president bill dudley now answering some questions following that speech in new york. he says that market volatility notwithstanding, chairman bernanke was, quote, very clear last week in stating the outlook for fed policy and nothing bernanke said should have surprised investors and just to hop on rick's point. he also says he can't judge if the fed has taken a credibility hit, although i think rick could probably have an opinion on that as wel

member of the delegation, steve cohen from tennessee, was shaking his head in disagreement the whole time. it appears as i say to have been somewhat divisive but in the end stevenatic note saying he made some of the initial phone calls to set the meeting up but the u.s. embassy played a big role in miking this happen. >> why does steven segal have great contacts in the russian security service? >> we know he and the russian president vladimir putin get along because they have a shared interest in martial arts. vladimir putin is a high-ranking black belt in judo. putin has tried to style himself as something of an action hero all along, so we know that steven seagal has spent time here but in seagal's words he says he is friends with many the s in many countries but didn't explain why. >> phil black in moscow, thanks for that story. >> dennis rodman in north korea but that's a different situation. >>> the irs scandal widening this morning and we could see fireworks today. because this afternoon acting irs commissioner daniel warfell appears before a committee over the investigation of targeting of tea party groups. we'll hear tomorrow from the groups who claim t