steve biko mistake and he's making it real easy he's doing it you know he doesn't want to jail stevie cohen you know he's got he's re-inventing the game you say that stuff but you know there's a gentleman here somewhere there's go to jail belittle you there you go to jail he should get a good view of this is right there you know go to jail steve you go in again this is no jail means and that's not free market cap continue please well of course the u.s. attorney general in new york says that you know cohen himself wasn't charged unlike at least eight former n.s.a. sea fund managers and analysts faced or are facing fraud charges for their roles in a scheme which will lead. really involved more than twenty companies and went back as far as one thousand nine hundred nine so here they have a classic case of rico they could charge with rico but they're saying here like most of its trading floor we're all engaged in insider trading schemes you know this is like approaching al capone and al capone saying i had no idea all the guys working for me were thugs and murderers and running out the hall and

going out there and connecticut it appears is the rulebook here stevie cohen out of blood by and i was thinkin rose what i'd like to be done in a little final play by no stinking rules their way is the monopoly with real estate portfolio all i need to do is borrow a future lean dollars riskless lee for free from the federal reserve buy all this stuff then charge everybody read because i'm a rent seeking fool i'm an oligarch i'm jamie done it i'm stupid gold who was there for other people up that's my version of an openly suckers well you know it would be a game wouldn't last very long that's a very good way to make a very short is that one of two players only one doesn't have to stop it go to jail. and the other one doesn't get to stop on the two hundred dollars clip two hundred dollars pass go like the ordinary person never even passes go they don't pascoe because they don't get to collect the two hundred dollars not let me let me just stop you there first i could because you're making an excellent point the average person does not collect their two hundred dollars i mean yes sure the

which is hard for for even the banks to know at any given time and we have capital management stevie cohen's front for him is facing

and that should be a very good selling product for many of these people but prosecutors again stevie cohen are charging him on civil fraud charges so money laundering that they commingle the profits with his own so his nine billion dollar fortune is at stake they could possibly seize it all but when so many people from a single hedge fund have engaged in insider trading it is not a coincidence barrayar said today's indictment is not just a narrative of names and numbers it is more broadly an account of a firm with zero tolerance for low returns but seemingly tremendous tolerance for questionable conduct he said so s. a c. over time became a veritable magnet for market cheaters but you could say that max about the entirety of wall street the entirety of the corporate culture it becomes a magnet for market cheaters whether it's you know in the energy markets in california which are one of the biggest magnets it seems like it's a you know black hole of draws in all the market fraudsters and never stops nobody closes that black hole but the entire system is like well let's talk about cohen's c

how strong do you think this cases and do you think stevie cohen faces criminal charges? >> so the fact that they indicted the firm and not him, they indicted individuals at firm and not him points to the weakness of the case specifically against him. otherwise they would have gone for him. melissa: i guess but there are at love people who are saying on the sidelines, they're holding their breath and waiting, that will be the last shoe to drop. you don't think so? >> they may go after him and may find stronger evidence against him or have people testify because there are people who made guilty please. there may be individuals who make guilty pleas and point the finger to give the government a strong enough case. that is a sign they don't have a strong enough one. by going affirms you're hurting other people. you're hurting complily innocent clients of the firm. melissa: jason, we heard a lot about the case today and it seems that, you know, basically it's about stevie cohen who was, you know, thought to be the greatest trader on wall street. he was somebody who was so goo

the average american will collect two hundred dollars a month in food stamps where the likes of stevie cohen or you know jamie diamond or lloyd blankfein or any other banker connected group halliburton halliburton just a. minute to destroying evidence in the deepwater horizon the gulf of mexico oil spill they admitted to it and all they're having to pay is a two hundred thousand dollars fine avoiding jail not being criminally prosecuted and the other normal person would go directly to jail sit this the next the rest of your life out essential but you know they collect the bankers will collect hundreds of millions two hundred million two hundred billion two hundred trillion in subsidies and bailouts right the average should know gets that two hundred dollar food stamp to go to wal mart to buy some baby formula for their screaming little american to a baby but most of the other bankers are the. where they're getting two hundred billion dollars freebies by just going around the board everyone else is trapped is trapped in these little houses and they're trapped in these little units these littl

the only thing worse than being stevie cohen right now is being a tech stock. microsoft having its worst day. what stock does this matter most to? facebook. its shares fell in sympathy today. today a massive bearish bet came through, a long day of puts changed hands. brian, it certainly doesn't look good in terms of the positioning in fb. >> some of the trading that went on that you just mentioned in option world, basically a trader was buying stock but protecting themselves with an upside call. they think the upside is somewhat limited over the next year and a half. having said that, there a lot of good things going for facebook. i know it took a hit because you look at the app world. facebook has a tremendous amount of growth here, they still have a tremendous opportunity in areas of europe and asia where in europe they're only 50% market share, in europe 25%. so there is opportunity in the asian community or in that area to sort of grow some of their user base. >> mike, do you hear trouble in monetizing mobile from google and think facebook's going to face t

capital stevie cohen and a lot of speculation about that. now the news is out.ite a friday in the summertime. who said summer fridays are slow? i will certainly never say that again. we're in detroit for a specific reason. you just heard from the afl-cio. you've heard some of the stats and seen some of the pictures. rod malone set business editor for channel 4 here in detroit and a guy that covers detroit news every single day for nbc, rod, thank you very much for joining us. >> glad to be here. >> in your mind covering the city for at long as you had, what's the root cause of this problem? is there one? is there many in. >> there are many. it's been 60 years generally but frankly general motors headquarters across the street, the city of detroit is build on the old general motors business model, benefit pensions, lifetime health care and feather bedded jobs that had union backing and management signing off on contracts to have union peace. general motors went fins up five years ago, four years ago, on that business model. why anybody would think that a city sim

going to take and he's making it real easy he's doing it and you know he doesn't want jail stevie cohen you know he's got he's re-invent.

which is hard for for even the banks to know at any given time and we have capital management stevie cohen's front for him is facing charges allegations of insider trading wire fraud and the hedge funds are leverage to the hold to i think they had thirteen billion dollars under management but they actually had forty four billion dollars and what you're saying if i understand it is that when we have a systemic panic it's that higher number it's like the total leverage amount that really matters leverage is the key and i think we're going to talk about that yeah definitely leverage is you know for the lay person leverage is about borrowing someone else's money to make an investment ok and in general we are familiar with that from the experience perhaps perhaps of buying a house you take the money from the bank you go ahead and buy your real estate or your house and you hope that the price increases and if it does and you pocket the difference you get capture that equity and that is great if it works yeah that's the power of leverage but it's not just that the banks are taking money from the fe

which is hard for for even the banks to know at any given time and we have capital management stevie cohen's from for him is facing charges allegations of insider trading wire fraud hedge funds or leverage to the hold to i think they had thirteen billion dollars under management but they actually had forty four billion dollars and what you're saying if i understand it is that when we have a systemic panic it's that higher number it's like the total leverage amount that really matters leverage is the key and i think we're going to talk about that yeah definitely leverage is you know for the lay person leverage is about borrowing someone else's money to make an investment ok and in general we are familiar with that from the experience for props of buying a house you take the money from the bank you go to a real estate or your house and you hope that the price increases and if it does and you pocket the difference you get and if it does and you plan is great if it works yeah that's the power of leverage but it's not just that the banks are taking money from the fed or from other borrowed source

it's official as they see capital is toast that would be stevie cohen's hedge fund which posted annual profits of over twenty percent and once had fifteen billion dollars under management a grand jury indicted the firm alleging securities and to wire fraud and the head to find it may have to discard hundreds of millions even billions in profit mr cohen is not himself indicted in fact the indictment doesn't even contain his name simply referred to as the as a see owner so it looks like you pulled records are in for no but he made three civil suits from the investors that may not get their money back by the way the soon to be defunct hedge fund accounts by some estimates to be ten percent of daily stock market value at the new york stock exchange don't worry though high frequency traders have promised to pick up the very end breakstone insider trading later in the show and i'll do so on the very same topic but it won't be boring and with all the talk of tapering quantitative easing someone has decided to quantify just how much of ben's money bing had to do is corporate profits according

it's official as they see capital is toast that would be stevie cohen's hedge fund which posted annual profits of over twenty percent and once had fifteen billion dollars under management a grand jury indicted the firm alleging securities and to wire fraud and then had to find it may have to discard hundreds of millions even billions in profit then mr cohen is not himself indicted in fact the indictment doesn't even contain his name you simply refer to as the as a see owner. go in or it looks like you pulled records are in for no what you made very civil suits from the investors that may not get their money back by the way the soon to be defunct hedge fund accounts by some estimates to be ten.

it's official as they see capital is toast that would be stevie cohen's hedge fund which posted annual profits of over twenty percent and once had fifteen billion dollars under management a grand jury indicted the firm alleging securities and to wire fraud and the hedge fund it may have to discard hundreds of millions even billions in profit then mr cohen is not himself indicted in fact the indictment doesn't even contain his name you simply refer to as the as a see owner so it looks like you pulled records are in for no but he made very civil suits from the investors that may not get their money back by the way the soon to be defunct hedge fund accounts by some estimates to be ten percent of daily stock market value at the new york stock exchange don't worry though high frequency traders have promised to pick up the very end breakstone insider trading later in the show and so on the very same topic but it won't be boring and with all the talk of tapering quantitative easing someone has decided to quantify just how much money printing had to do is corporate profits according to the dir

liz: what about the stevie cohen thing last friday? >> i broke it on your show. liz: i know.visiting day. >> june 10th, just so you know, the fox business network first reported that. the sec was angling his case as a failure to supervise case against cohen and modeling after what they brought with jon corzine. they couldn't really put the dots together to get him on a specific fraud or insider trading. liz: sure enough, that's exactly what happened. >> now, why do we cover steve cohen? because people that watch fox business invest in hedge funds. and by the way, guess what else? people at hedge funds watch fox business. so that's why we cover, you know, stuff about steve cohen. [laughter] liz: hey, i think it's a great story. >> will okay. i just want to make sure we're all on the same page around here why financial news is covered. it's not, you know, i don't know, just because people who watch business, fox business want financial be news. liz: yeah. they don't want with, you know, tick by tick trading insanity. you get at the other guys. >> well, and they don't want, like

stevie cohen.is somebody he is either the greatest trader of all time or, you know, something less legal, depending on everything that is goinghi on. we don't know anything yet. but there's a lost controversy around this. so, you know, john, let me start with you. buy, sell or hold steve cohen? >> strong buy. 10 plus years of 20% returns in his hedge fund? melissa: you're not worried where those returns came from? not worried about redemptions going on right now? you're not worried of him becoming a family office at best? >> i'm not worried you by think unfortunately he is made a scapegoat by insider trading laws which are completely nonobjective and arbitrary a tool of government to punish successful businessmen. strong buy on steve cohen and strong selluy on sec. melissa: okay. hillary, what do you think? >> steve cohen is brilliant. he created single-handedly a whole form of hedge fund management. even if everyone does redeem, he has $10 billion and he can go off and manage it. steve cohen is no

yeah, i mean, i think it's amazing what the press and what all -- what everybody has done to stevie cohen's reputation. first of all, i'm not pulling any money out. i'm not a huge investor of steven cohen's. i don't want anyone to think i am. just think about this for a moment. since 19 -- since the mid-1990s, he has returned about 4,000% back to his investors. the trades in question right now, where he failed to supervise, represent $275 million. now, that's a big number, but put it in the context, it's less than .005% of the gains that he has returned back to investors since the mid-1990s. so i have never thought about moving money out. as a matter of fact, i've often thought about how can i get more money back to this wonderful investor. >> you know, since you mentioned the press, i'd like to read a statement from dan kramer, who is s.a.c.'s attorney, we have attained here, saying the press speculates about a lot of things in this case, but one of the possibilities that the press does not engage in is the possibility that steve cohen did not do anything wrong. we believe the evidence wil

charles stevie cohen. if it's such a minor charge, how come it could potentially put a huge figure like cohen out of business? the co-author of the dodd-frank financial regulation bill barney frank will comment on that. >> that's right. and here's how we stand, though. we haven't moved much in terms of volatility. the dow was up 37 -- excuse me, up 32, down 27 at the peak and valley. we're right in the middle of the range, up 7 1/2 points at 15,551. by the way, if we're up five points today, an all-time high. >> that's right. up about six for the time being. >> mcdonald's will be making the call today. nasdaq trading higher. the dow is the lagger of the major averages. the dow is up 14 points now at 3,601. technology a bright spot for the markets today. and the s&p, any positive close for the s&p will be another all-time high. up almost 4 points right now. so with the dow and s&p trying to hit all-time highs today, let's talk about this market in today's "closing bell exchange," with danielle hughes, antho

stevie cohen was thi legendary figure.always made money. 2008 was the only year his firm does dnot have sort of a very impressive performance. so i think it is going to shake people. there had been some fatigue, i think, over the last few years on wall street over some of these insider trading cases. people were getting a little weary. but this case today was so strong and so sort of dramatic, i think people are going to really pay attention. and ting has already sent a message about cheating and aggressive behavior and the use of information. >> sreenivasan: all right, thanks so much. >> brown: now, from california: prisoners held in isolation for years and sometimes decades are mounting protests. special correspondent michael montgomery with the center for investigative reporting and kqed san francisco has the story. >> reporter: pelican bay state prison in northern california is designed to hold some of the most dangerous inmates in the states vast penal system. inside, is a bunker-like security housing unit where hundr

something else we have been watching for oh so long is stevie cohen. ing to the "wall street journal," the prosecutors do not have enough evidence to file insider trading charges against cohen. the five-year statute of limitations will pass without any action. we have been following this story closely for quite some time, and mr. cohen himself in san trope last week, and trying to get some relaxation in. we will see. it has always been a difficult case that we are talking about here with matthew martomo specifically with wythe and the profits and the happenings of five years ago. i wondered how possible to get martomo to turn, and if you did, what would he say went on in the key 20-minute conversation, because no way he said to steve cohen, i would believe, oh, we have this inside informationment forget it. he is an employee of the firm that you are paid, because people believe you are a great analyst and therefore you want your boss to think that you are a great analyst and you change your opinion because of the great work. so it is a difficult one to

. >> well, stevie cohen did change his business model to a consent. >> i asked preet, was it a terrible and one of the big bugaboos is that you you have to have real compliance and he has written great speeches about it. what they are saying is that it is anything gs here, and you can't have and anything goes business model. >> in the words of the indictment, substantial pervasive and insider trading that was substantial, pervasive and on a scale without known precedent in the hedge fund industry. let's bring in bethany mcclane, contributing editor for v vanityfare." good to talk to you. >> good to talk to you again. >> at the time, you suggested that it is a persecution or prosecution, and you have had time, i assume, to look over the kimt, and what is your take? >> a little bit. i have not dug through it, but it corroborates what everybody said basically which is that this is a company where compliance was set up in name rather than in practice. and a place that thrives on the insider trading if you believe the pages of the indictment. >> where's the line between charging illegal acti

cohen. there may be hints from another high-profile sec case. fox business senior correspondent and author of "circle of friends," charlie gasparino is here with the exclusive new details on little stevieall my book the cheat sheet. adam: it is cheat sheet because like cliff notes if you want to read what is going on with insider trading last 20 years. >> the sec charges on cohen for failing to lead, leading the defense bar that this is not done yet for the prosecuting side. they have added more charges, more details, more insight into the notion that the feds really believe, take steve cohen out of it, they charged him with failure to supervise, what you read the thing between the lines they're saying this is a company out of control that needs to be brought down. you combine that with some recent statements of the u.s. attorney preet baja a. that he has made. you get the impression that we first reported on fox business, sac capital, one. biggest most most successful hedge funds is heading for a indictment by the federal government. i don't know this to be a fact but it is pretty clear they're looking at that, indicting the firm, possibly on a rico chargings possibly on something els