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
May 2, 2016
A man walks on the rail tracks of a train station turned into a makeshift camp crowded by migrants and refugees, at the northern Greek border point of Idomeni, Greece, Friday, April 29, 2016. Many thousands of migrants remain at the Greek border with Macedonia, hoping that the border crossing will reopen, allowing them to move north into central Europe. (AP Photo/Gregorio Borgia)

A top former US diplomat says refugees and tribalism are pulling Europe apart and that the US needs to get involved- to help Europe by helping refugees.

May 2, 2016
ADVANCE FOR MONDAY, MAY 2, 2016 AND THEREAFTER - In this April 19, 2016 photo, Laurie Millan, a para-professional and tutor, works with a student during an after school tutoring session at San Francisco International High School, in San Francisco. While some districts in numerous states have discouraged migrant minors from Central America from enrolling in their schools, the school accommodated its youths by rewriting young-adult novels at a basic level to spark the newcomers' interest in reading.  (AP Photo/Jeff Chiu)

Is grit the secret sauce that drives success? More important than both talent and intellect? We’re talking the power and limits of grit.

RECENT
SHOWS
Apr 29, 2016
Screengrab from the #MorethanMean video produced by Sarah Spain and Julie Dicaro. Scroll down to view the video.

Women pushing back. A video by two female sports reporters about online harassment goes viral.

 
Apr 29, 2016
Republican presidential candidate Sen. Ted Cruz, R-Texas, joined by former Hewlett-Packard CEO Carly Fiorina waves during a rally in Indianapolis, Wednesday, April 27, 2016, when Cruz announced he has tapped Fiorina to serve as his running mate. (AP Photo/Michael Conroy)

Trump and Hillary wins. Bernie lays off. Cruz chooses Carly. Beyonce drops “Lemonade.” Our weekly news roundtable goes beyond the headlines.

On Point Blog
On Point Blog
‘Embedded’: How Violent Gangs Are Terrorizing El Salvador
Thursday, Apr 14, 2016

NPR’s Kelly McEvers on her reporting in El Salvador for the podcast Embedded, and how gang killings brought San Salvador’s bus service to a halt.

More »
Comment
 
That Cheap Dress On Facebook? It Isn't Worth It
Monday, Apr 11, 2016

Know those shockingly cheap clothes you see advertised on Facebook? There’s a catch.

More »
Comment
 
The Boston Globe Imagines — And Rejects — A President Trump Front Page
Monday, Apr 11, 2016

The Boston Globe editorial page imagines — and rejects — President Donald Trump.

More »
Comment