Not facebook. This ceo coming on exclusively, or even amazon. But sac capital, the embattled hedge fund founded by billionaire steven cohen facing no criminal charges of systematic insider trading. Allegedly generating hundreds of millions of dollars of illegal profit and to avoid losses and this allegedly over more than a decade. Widespread, systematic. You name it, they say they did it. We just got word from sac that it plans to operate as it works through these matters. Theyre still in business. They say that it never encouraged promoted or tolerated insidertrading. What were going to do is take a look at what might happen, why this matters to an individual investor is not have money with them as well as the billions of dollars in assets, with a might now flow. The impact on the entire Hedge Fund Industry and the trading industry because they own huge positions in a lot of stocks. Are very un Charlie Gasparino has been breaking news on this story well in advance of everyone else. More right now. We also have fred tecce, former prosecutor and as these cases. First we get to Charlie Gasparino on breaking news. Heres what we know. Sac is still a company, but will investors remain. A lot of people put their money out, while those keep their money in . One of the Main Investors has been skybridge capitol, a friend of mine. Runs that great conference in las vegas. We understand he is weighing whether to take his money out. What he is telling people, its his investors decision. He invests in the fund for investors. His clients will direct him on whether or not he should keep his money in sac capital. But he is telling people is that he expects his client to tell him that he has to take valleys to take his money out. That would be a fairly significant blow. Liz he has taken some out. By the way, a cnbc contributor. He has been on their lot. Youre telling me now that he may pull it all out. Its interesting. He gave an earlier interview. It did not have know at present. He basically said he hasnt decided. Of course the dozen because an investor seven told them. But he expects this is investors to tell him to remove money from the fund because it has been indicted. Reason also point out he has removed most of his money. People dont realize this. Liz was the keeping some of it and to be friends . You know, discover your basis. He has personal money in there. Personal money. He also has institutional money in there. From one eye and a stand and we should have banners that say this. Banners that say that he will basically tell people that he will learn from investors whether he should keep it and not today in the things that there will be pulling out. We should also have one that says he has removed most of his money. Now, thats an interesting thing because people thought he was in there, full monty. We dont know the exact reason. He might not have liked the investment strategy, but we know that skybridge, amid all this, has taken money out. Prosecutor. Ring in fred tecce, you know these cases inside and out. Not necessarily this one because of the details, but youre shaking your head right now. Would you think that anybody who keeps their money in is absolutely insane . I have to tell you, the first thing they teach you when you are a firstyear Law School Student is buyer beware. At this point youre on notice. This indictment is devastating. Forget the indictment, forget the criminal charges for one minute. The government filed a civil seizure action and looks to seize the entire assets of all sac companies and related companies on the grounds that since 1999 these people have been engaged in an ongoing and systemic insidertrading scheme which has resulted in all the profits. Liz in fact, let me quote the fbi. He was the one who got up next to the u. S. Attorney and said, the scale of the cheating and this is what the fbi is saying he over at sac is without precedent. Thorough action on behalf of management, not only encouraged but tolerated all the cheating. And so lets keep it. We have at coming up here is keeping his money in. What harm could come to them if they keep their money in . I have to tell you, they will offer themselves up to civil suits ultimately if it turns out that the government was right and this conviction comes through. Remember, if you read this indictment, there are eight named people in there who either agreed to plead guilty or who have been charged in those people still talking to the government. The government convicts these people and seizes assets and their investors lose money, they know where to get the check book out and hire brill big wall street law firms because theyre going to need an. Charlie gasparino, thank you for joining us. I read between the lines of this thing. I read the indictment, but i also read between the lines. It sounds like theyre lining of the case against steve talent. Am i missing something . Your not missing anything. That is what jumped out at me as well. The amount of evidence, specific evidence that they had to me was striking. Now somewhere someone made the decision not to include him in this indictment. That could have been for a lot of reasons. We dont know. We ultimately find out he was presented to the grand jury. The government may have made the decision that rather than push the case they think is not as strong as it could be, they just take the guys money away because thats ultimately what theyre looking for. De think they come back at some point . One of the interesting things, the u. S. Attorney for the Southern District. You have to listen. Recently he publicly says we dont care about the statute of limitations. There are ways around that. It sounds like they are continuing to investigate and look for that smoking gun that could put this over the top. Under the law they have five years from the last overt act, the last a little thing this company did, so they have time. Dont forget, there are two guys were going to trial. If they get convicted and decided dont want to spend the rest of their life in club fed and rollover, that may be what the government needs to break the logjam. This is not over. Liz best guess on this, you have matthew marked, and steinberg. Do you think they turned . I have to tell you, there will be a lot more motivated to turn if they get convicted. There are six people that already turned. Nothing like the jury saying guilty to make you rethink your position. Liz apparently he admitted guilt. He had to. One question i do have, and we probably have to wrap this up. If they get indicted can they turn at that point . Does the government say, okay, we will give you less time in jail if you cooperate, once you are convicted . Can you turn at that point . Absolutely. The government can agree to a lower sentence. Quite frankly it is up in the bunch of times. But among the witness stand and say, these guys are convicted of insider trading. Those of the guys need to listen to. Liz fred tecce, former federal prosecutor joining us from philadelphia. We appreciate your opinion. Buyer beware. Certainly a people of the money in it,. He has been bragging all kinds of news on this. Anything you get, he is gripping his cellphone. What will other investors charlie just told us about the cnbc contributor and the head of skybridge. He will ask his investors. Let me guess, they will say yes. He thinks that is investors are going to tell him to pull. Thats what he believes. Whether they will not come i cant tell you. That is the key. Whats also key, he has taken most of his money out. There is an interesting thing. What claman foxbusiness. Com just said, you open yourself up to civil suits if you dont. Liz lets go. There is one investor who says for now he is sticking with sac. Ed butowsky, managing partner. You just heard what charlie said. You just heard what fred tecce said. Have you changed your mind between the time that we book you and right now . I have to get off the air and go get out of sac. No, all kidding aside, i look and think when i put my clients money into something more in some money manager i take it seriously and never responsibility to really analyze what im doing prior to money going in and how that money where will allocate funds. What im hearing right now is there are allegations that have been brought against sac. If something is material that will impact their ability to do business, if there is something that changes as a result of this and absolutely and going to revisit my opinion, but right now i dont have anything other than charges have been brought against the firm, and im not taking any money at this moment the. Liz this is a massive distraction of Epic Proportions when it comes to a criminal charge. And the things that they were saying, i started writing them down as soon as the u. S. Attorney for the Southern District said criminal activity on behalf of some many. These are quotes. Personal networks of company insiders. I look at this and think to myself, who wants to touch that . Its like a scourged. Does it not become a massive distraction at the farm . And know they have 1,000 employees, many of them goodhearted people, and short. Some apparently not, according to the Southern District. Is no question about it. Im concerned about this, and if it is a distraction and we start seeing traders leave, look, an image that has been tarnished, you might see a lot of people start to leave. As you said perfectly, there are 1,000 employees. There are going to be people leaving and there will be distractions and is probably not point to be the same firm that it was over the last couple of years. Im watching that closely, but we also live in the company were allegations can be brought. Sometimes liz some of them are leaving and walking straight to jail, to prison. That is of great concern. Can i ask to have you gotten any guidance . Have you picked up the phone, talked to your guys over there . And im doing a lot of work behind the scenes, but i also dont think people are walking out the door and walking to jail. A lot of people walking out the door, opening their own shops. There are people who are staying right there. Am i concerned . Yes. Weve talked about this many times, and these new allegations and what the attorney general said is very disconcerting. But there is another side to the story. I will tell you, if you want to find this modest attorneys in the world, they live right there. I tell you, they have a good defense. Liz you kind of glossed over when i ask you if you smoke into your spoken to people inside sac capital. Is that a yes and, if so, what can you tell me . I cant really go too much into that, but what i can tell you is something that they had a feeling was coming. Charlie will tell you that as well. People are not happy about it. Liz are they saying, it will be fine . Dont worry . I make my own conclusions based upon my evidence. Liz are you going to cover your investors . Im absolutely not. I have to make some calls this afternoon. Liz and you have been busy. Ed butowsky. He is a look. Innocent until proven guilty. We understand. Please keep us posted. Thank you so much. Joining us live from dallas. Plenty of market news. We are not ignoring that. Facebook scoring big on advertising revenue this quarter boosting its stock. Another Company Shares as well. Lets get to nicole. Reporter today the story, facebook, you see the stock moving. The highest level since last year, the day after the ipo. 34, this huge steel. The biggest rally ever since the ipo. You can see 29 mobile ad revenue. That is what everybody was worried about. Now everyone sang you dont need to worry any more. Also hired, watching to the upside. Both names are waiting. But facebook, a real top performer here going into the closing bell. And i am really surprised, no one really expected it. Up eight and threequarters of a percent as well. Liz facebook is up more than 25 . We have it up as you saw about 9 . As soon as those numbers come out, we will have them. A lot of discussion about what is going on. The closing bell ringing in 46 minutes. You want to know where the next generation of tac is coming from . Perhaps you should look no further than berkeley. We talk to the schools dean live and exclusively in our special masters of business series. They are not interested in the financial services. They want to go. Its a david versus goliath battle in the barrel airline industry. The secrets behind alaska airs Winning Strategy for investors and consumers. The stock is up by 77 percent over the past year. The carrier ceo joining us in a fox business exclusive. With the spark cash card from capital one. Boris earns unlimited rewards for his Small Business. Can i get the smith contract, ease . Thank you. Thats three new paper shredders. [ boris ] put em on my spark card. [ garth ] boris Small Business earns 2 cash back on everychase ery day. Great businesses deserve unlimited rewards. Read bacthe chickens testimony, please. Buk, buk, bukka [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose 2 cash back or double miles on every purchase every day. Told you id get half. Whats in your walle liz well, green on the screen from the s p 500 nasdaq. A lot of other news besides sac capital. Lets destroyed to the floor show. Traders at the new york stock exchange, cme, and nymex. Transports down 22 points. Were not seeing strength. What are you seeing, some action on behalf of the bulls . The only real action, each individual stock. The indices, and other words, nasdaq up because of facebook. The Dow Jones Industrial average is lagging behind. Has been a market of stocks, not the stock market for the last several days. So depending on the way the stock is trading, thats the impact youre seeing. The s p, housing stocks are getting hammered. Thats having an effect on home depot which is putting pressure on the dow. Liz of want to just point out quickly that there is a flash coming from the wall street journal. Boeing and air india are saying that the issue with the fire on the 77 a few days back was caused by an overheated seven, nothing to do with any structural issue, any batteries, and over heated oven, that ccording to the airline. Were watching the stock, just about flat. I want to get to hire epstein, currencies to the bond market. What do you think is the most important . Today is one of those summer days. On the floor of the exchange, and its exceptionally quiet. The rumblings we are starting to Pay Attention to what the next notes from the fomc meeting. In terms of the currency, there is almost no movement. Yesterday you saw the currency, the yen down as their worries about china, the stimulus. Today that abates and they come right back. Its just getting this backandforth action. The one area that has been exciting, the grain markets. They have been in a long tumble. Three days, they lost a massive amount of money. The market went from a tagger pending stock situation to plenty of soybeans. Liz and i know the job youre looking at some real action in whats happening in the energy market. It is fascinating to watch the way commodities are behaving. I think a commodity market has been a little bit interesting lately, especially with crude, we touched the key moving average at about one of four. And this in as we head that we held the level and bounced back above 105 to close near the high of the day. Only up slightly, but that was a pretty big intraday moves. The fact that we held is pretty bullish going forward. In addition wanting to know, crudeoil and the s p 59594 correlation. Its really a response rate. Liz of 1688, but watching the nasdaq called at 3600, this is an exciting last hour. Thank you for joining us. I know its a summer day, but we have action right here. Thank you for joining us. We have a closing bell ringing in 38 minutes. President obama hitting the road again trying to sell his economic agenda. Will his plan for a new Infrastructure Spending work or run into a wall . You will go live to capitol hill. Call it the airline that could. Alaska air has won over both cors. The company ceo joining us exclusively to tell us how he has done both. One or the other we get, but both the same time . The stock up 77 . We have it right here only on fox business. My mantra . Always go the extra mile. To treat my low testosterone, i did my research. 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Ask your doctor about e only underarm low t treatment, axiron. Help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven and were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Liz breaking news, time warner cabls ceo whos been in place since 2001, glenn brit, will be stepping down at the end of the year. Its not a huge surprise, there have been rumors about mr. Brit staying just until the end of the day, and so now according to the dow jones news wire, that is the case, he will be stepping down. Right now the stock is down just about a quarter of a percent, we could show twc, if we can, you can see about 116 a share. The annual high is 119. So not far from the annual high, the stock. Not a bad performance for them. President obama just wrapped up a speech in florida which pushes for more Infrastructure Spending. Baak in washington, though, House Republicans are drafting legislation to cut spending. Again, the discrepancy here, rich edson. Youre on capitol hill, what are they saying . Reporter yeah, its, you know, liz, you have to come up with some type of compromise here. Youve got the