90.9 WBUR - Boston's NPR news station
Top Stories:
PLEDGE NOW
More Corruption On Wall Street

Hedge fund masters of the universe in trouble. We’ll look at what’s coming out.

Hiding his face beneath a red hooded jacket, hedge fund portfolio manager Donald Longueuil leaves federal court Tuesday, Feb. 8, 2011 in New York. Longueuil is facing obstruction of justice and conspiracy charges stemming from an insider trading probe by federal authorities. (AP)

Hiding his face beneath a red hooded jacket, hedge fund portfolio manager Donald Longueuil leaves federal court Tuesday, Feb. 8, 2011 in New York. Longueuil is facing obstruction of justice and conspiracy charges stemming from an insider trading probe by federal authorities. (AP)

For most people, hedge funds used to sound like some kind of lawn service.  Years of trouble in Wall Street finance have clued us in.  Hedge funds are some of the sharpest investors out there.  Working on the big-money edge.  Take that edge too far, and you can have insider trading.  Unfair advantage.  Broken laws.

Right now, a huge investigation is circling around Steven A. Cohen, one of the biggest hedge fund masters of the universe.  No charges against him, but a lot of billowing smoke.  And an education for the little guy.

This hour, On Point:  a hedge fund hero in hot water.

-Tom Ashbrook

Guests

Peter Lattman, reporter for the New York Times’ Deal Book.

Arthur Laby, professor of law at Rutgers, where he specializes in securities law and regulation.

Robert Khuzami, director of the Division of Enforcement of the U.S. Securities and Exchange Commission.

From Tom’s Reading List

Bloomberg Businessweek “The possibility that Cohen might share the fate of fellow hedge fund billionaire Raj Rajaratnam, who was found guilty of conspiracy and securities fraud in May 2011 and sentenced to 11 years in prison, has caused a frisson of anticipation in the financial world. On Nov. 28, the president of SAC Capital, Tom Conheeney, told investors that the Securities and Exchange Commission is considering filing a civil suit against the firm.”

The New York Times “In March 1991, Michael R. Milken, once the richest and most powerful financier of his generation, entered prison, signaling the end of an era of junk bond-financed hostile takeovers and high-visibility prosecutions that law enforcement officials hoped would deter insider trading for generations.”

Forbes “Many of these convictions stemmed from the government’s ability to uncover widespread conspiracies.  Raj Rajaratnam, the founder of the hedge fund Galleon Group, stood at the center of one of the largest of these insider trading networks.  According to trial testimony and court documents, his web of informants provided illicit information on companies ranging from tech bellwethers like Intel and Advanced Micro Devices to banking giant Goldman Sachs.  In all, nearly two dozen people associated with Rajaratnam’s insider trading scheme have pleaded guilty or have been convicted by a jury.”

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
Oct 24, 2014
Ottawa police officers, with Parliament Hill in the background, guard the area around the National War Memorial in downtown Ottawa on Thursday. (Reuters/Landov)

Gunfire in Canada’s capital. Billionaire millions hit the midterms. Huge airbag recall. Ben Bradlee is dead. Our weekly news roundtable goes behind the headlines.

Oct 24, 2014
Andrew (Miles Teller) and his often demanding conductor, Terrence (J.K. Simmons) in a scene from the new film, "Whiplash." (Courtesy Sony Pictures Classics)

The new movie “Whiplash”. The thin line between obsession and abuse on the road to greatness. In music, the arts…sports.

RECENT
SHOWS
Oct 23, 2014
A screenshot from the interactive game, "Depression Quest," the game at the root of the ongoing #GamerGate controversy. (Courtesy  "Depression Quest")

#GamerGate. Sexism, misogyny and rough stuff in a video game world culture clash.

 
Oct 23, 2014
Specialist Ronnie Howard, center, calls out prices as he works at his post on the floor of the New York Stock Exchange Thursday, Oct. 16, 2014. Beyond the turmoil shaking financial markets, the U.S. economy remains sturdier than many seem to fear. (AP)

The global economic wobble. Europe weakness. China fears. Wild markets. We’ll lay out the global economy now.

On Point Blog
On Point Blog
The Explicast, Episode Two: Why Is Election Day On A Tuesday?
Friday, Oct 24, 2014

The Explicast is back for another round. This time, we’re looking at Election Day, and why we all keep voting on a random Tuesday in early November.

More »
Comment
 
Our Week In The Web: October 24, 2014
Friday, Oct 24, 2014

On comments, comment sections, and ROY G BIV.

More »
Comment
 
Introducing The Explicast: A New Podcast From On Point Radio
Friday, Oct 17, 2014

Confused about the news? Don’t worry: so are we sometimes! Introducing a new On Point Radio podcast: The Explicast. You can find Episode One right here.

More »
3 Comments