The day today. Goldman sachs raised for example putting still dynamics to a buy from a sell. It shifted its rating. It was cautious originally but now the standout stocks that are worth keeping an eye on and buying as they say. Adam thank you, nicole. Lori a live look at the u. S. Attorneys office in new york where in moments they are going to unveil Insider Trading plea deal with sac capital capping a multiyear insidertrading probe. We will bring you this live. Charlie gasparino also on hand when the attorney general speaks. Adam we want to bring you the latest developments on blackberry. Dennis kneale has been covering this. Is this a surprise . Dennis it is a shocker. Now it was down 16 . The whole thing is what if they had a buyout and nobody even showed up . Those stocks selling off on that because the buyout is over and replacing the ceo. It is hard to think of a ceo who has performed worse. He bet on a touchscreen smartphone when the real keyboard was blackberry mainstay. He bought a jet and the company was in trouble. Lets jump up a few more paragraphs on that prompter. Blackberry had agreed on a buyout from a large institutional shareholder, but fairfax had trouble raising the financing. So now they will loan a billion dollars to blackberry while they try to write itself. The big question is whether it can. Sales fell, it came out huge and kicking the tires at blackberry, but they passed on it. Microsoft, facebook, samsung, lenovo and qualcomm reported to have looked at blackberry or talked to the guys over there and are nowhere to be seen. Adam what does fairfax gain from this . Your profit doesnt go out of business and you go to zero. At some price it has be worth another bet. Thousands of Corporate Events with millions upon millions coming in. You dont walk away from that but so far theyre just not able to find the right partner. That is not your core competency. Microsoft bought the wrong company. Lori this is a golden parachute. He tripled it to 56 million even as the trouble got worse and sitting on the Compensation Committee to approve that deal was the ceo of fairfax financial which made a bid for a buyout. He should not have done that. What kind of bad. Adam we are awaiting the press conference with the u. S. Attorney for the Southern District of new york, very large settlement, 1. 2 billion that as a c will be pleading guilty to some of the charges, but we want to bring into this discussion co professor for reaction to this and very simply, what do you think . This is not a surprise, is it . Not at all. He has been very successful, now 3for3. Each of those cases they held out, they resisted, he has won overwhelmingly. It will be followed up by an sec action that will probably bar mr. Cohen from life from serving as an investment advisor. They will probably be barred from serving as a Public Investment advisor for anybody but mr. Cohen and his family. In the future they may bar him personally for life so i think this is going to be a story of just unmitigated success for the government on the insidertrading field. Lori he has not been barred as of yet. They are characterizing this as enabled and promoted insidertrading practices. So if this was more than publicity on the part of the government, why not write now kick cohen altogether out of the industry. Speak out because he is not a defendant in this case. Lori why dont you think he is a defendant . This is a criminal case and they dont have criminal evidence that goes to mr. Cohen. They have evidence various traders specifically mr. Steinberg who has been indicted and engaged in Insider Trading but nobody has been willing to testify against mr. Steve cohen so the government cannot indict him. Adam i want to quote you from a National Journal in september, 2012 you wrote the sec is settling cheaply with entities and ignore individuals of policy at parking tickets for securities fraud. You want to take that statement back . Is this when we get the decision down the road . This is the department of justice today, not the sec be at adam but everybody expects the sec to follow suit. Speak out i think they are going to do that eventually. What i dont know is if the Administration Law judge hearing the case will grant a lifetime ban for basically failure to supervise your broker. It is one of the least serious of the sec offenses. They may get what they are looking for and eventually theyre going to get mr. Steve cohen out of the brokerage business. But i dont think in general has used very high penalties. The statement you quoted me was about the general sec behavior toward most Financial Institutions and even in the london will case you dont see the sec suing any individual offices. Lori this is a victory for those look at this saying sac se cohen not able to buy himself out of this one. Cohen will still have seven to 9 billion can trade for his own accounts. He is not coming out of this homeless, carlos and bankrupt. He is going to have a relatively happy economic existence. He had no choice in settling this case because if he waited for the convictions of the two officers, which is always a probability in a government case, they would be even higher penalties for this is a plea bargain on the courthouse steps before the trials begin. co in order to get a somewhat cheaper price. Adam what does it say they cannot get those two defendants to flip and they dont have the evidence they would need to get a criminal one indictment and conviction . It shows those two individuals are extremely loyal to mr. Cohen. They may well pay for that because if they are convicted they could both face 10year sentences. Adam were probably going to have in about two minutes, one of the assistances have come out, som so are still waiting fr him. They are going to take a victory lap, we get that. But who is the next target out there . There are a number of other cases that dont involve insidertrading. It is exemplary. They dont do nearly the same going for large Financial Institutions. To his credit did succeed last week bringing charges against an individual jury resolved in his favor in the bank of america case but the sec still seems riskaverse. Adam ask you about the department of justice . Jpmorgan chase, has this bank gotten away from highway robbery . There are some legitimate issues about the fdic and what it is entitled to and what it has to guarantee. But basically we have already seen a 5 billion settlement, and we will probably see a settlement with the government. Adam whereabouts do have them in just a second. Here he is. Speak out this past july we filed a criminal indictment against for companies for engaging in Insider Trading that was substantial, pervasive and on a scale without president s in the history of hedge funds. Three months later we are here to announce a resolution that is matching in this magnitude. All of the charged sac companies have agreed to plead guilty, all have agreed to wind down and close outside Investment Businesses and all have agreed collectively to pay total fines and penalties in the record amount of 1. 8 billion. Todays agreements if approved would resolve the two cases brought by the government against as a c in july both the criminal indictment against the companies and separate civil forfeiture and Money Laundering action as well. Both agreements were set this point Lori District Court judges presiding over those cases for their review and their approval. The plea agreement announced today moreover is solely between this office and the sac companies and no individuals, does not include pleas of guilty any individuals or any criminal protections for immunity for any individuals Going Forward. Let me also stress that individual defendants who have been charged and are awaiting trial are presumed to be innocent and of the plea agreement announced today does not affect that presumption in any way. Before we discuss the agreement in more detail, let me injured as our in this investigation and in this prosecution. I am joined and so often in cases of this magnitude and importance by the fbi led by george here in new york. Today the fbi is represented by april brooks, special agent in charge of the division. I want to thank them for their dedication and for the dedication of their teams of fbi agents, notably supervisors. And also special agents. For their hard work and assistance. We would not be there for the dedication and hard work. I also want to thank the Attorneys Commission working so closely on so many different aspects of this investigation coordinated nicely with them as we always do. I especially want to thank and acknowledge the dedicated career prosecutors to my right who have made it possible. They are handling the prosecution on the criminal side and their chiefs, also christine and smith for the aspect of the case as well as their chief of asset. So let me take just a couple of minutes to go through and talk about the particulars of todays agreement with the sac capital companies. Let me first make clear what we are announcing today that the government and the defendants have reached an agreement with one another. It is now for the court to independently consider those agreements and the agreements between the parties have no effect unless and until the court grants approval. The main features of the agreements are fairly straightforward and summarized in a chart to my right. If you take a look. On july 21 there were five counts. The total penalties ill try to speak as loud as i can. They are divided as follows as described in the papers sent to the court today. 900 million fine in connection with the criminal case. 900 million fine with respect to the criminal case, 900 million resolution with respect to the civil case. Which means a total of 1. 8 billion. As you may appreciate the security and Exchange Commission reached agreement with sac capital and those companies to the tune of 616 million based on conduct overlapping some of the kind that we allege in our civil Money Laundering complaint. And so if you subtract that out according to the agreement we had, a credit for that so the total additional payment beyond what has already been agreed to his 1. 184 billion. Other key terms of the agreement are that the entities agree to wind down in orderly Fashion Investment advisory business in a way and a timetable to be approved by the sec. Theyve agreed to accept the maximum term of ovation after pleading guilty of five years, and have agreed to maintain our approval a Compliance Consultant so that person can make sure everything is going as it should go at the entities durq time of their winds down. There is another key point worth noting about. The financial penalties. Its burden will not fall on thirdparty investors. The sac companies have made clear no outside investment money will be used to pay the 1. 85 ilion dollars penalty. Settlement terms provide for an orderly wind down and payment schedule of this record penalty to minimize any market disruption. I should also stress neither sac nor any person paying any portion of the 1. 8 billion penalty will be permitted to claim any Tax Deduction or tax benefit in connection with this payment. So that is what is in the agreement. Often as is the case here in addition to agreeing what is in their agreement it is important to note what is not in theywn agreement. There is no immunity from prosecution for any person as i mentioned. As i said, this agreement does not have any binding effect on any individuals at all charged or uncharged so while the agreement may and the prosecution of the companies with respect to individuals at this hedge fund or countless other Financial Institutions to buy and sell securities, we will continue to pursue insidertrading investigations and follow the facts wherever they lead an investigation on the criminal side remains ongoing. As i said just about four years ago at the time of our first major insidertrading arrest, grade sometimes is not good, and there are at least 75 convicted insidertrading defendants who today would likely agree, but individual guilt is not the whole of our mission. Sometimes institutions needs to be held accountable yet no institution should rest easy in the belief it is too big to jail. It is a moral hazard adjust to society can ill afford. Law enforcement should not shy away from Holding Institutions responsible when it is justified and necessary for both deterrence and accountability whether the misbehaving corporation is a hedge fund or a commercial bank or a manufacturer of a popular product because sometimes institutional punishment is essential to serve justice and deter misconduct. Today one of the Worlds Largest and most powerful hedge funds agreed to plead guilty by shutting down the business and pay the largest fine history for insidertrading essentials. That is the just and appropriate price in our view for the pervasive and unprecedented misconduct that occurred here. Let me call to the podium our partner from the fbi. Good afternoon. In 2006 with new information of unbridled Information Trading on hedge funds, the fbi went to work. After examining trading anomalies, poring over documents, conducting surveillances and making a first approach to a key target, that individual began cooperating with the government. What started with a key cooperator led to thousands of hours of relentless investigative work by a team of fbi agents uncovering an Extensive Network trafficking Insider Information throughout the Hedge Fund Industry. A network that has been chronicled by many of you. co the result, in part, brought todays plea and the latest step in the largest insidertrading investigation in history. None of this would have been possible without dedicated prosecutors willing to bring charges here in the Southern District led by u. S. Attorney and deputy attorney. I would like to recognize assistant and states attorneys and their chiefs. I would also like to recognize the team from my office. Fbi special agents. I also want to emphasize todays announcement has no effect on any individual awaiting trials. Those defendants are presumed innocent until determined otherwise. What sac capitals plea demonstrates is cheating and breaking the law are not only permitted but allowed to persist. Sac focus on hiring the best talent, talent who was equipped with Extensive Network to circumvent traditional lines of communication. Talent who would be prepared to get confidential information to feel their illicit trade. Sac didnt just break the law, other illegal activity was involved in Insider Trading that was substantial, pervasive and on a scale without known precedents according to the july indictment. Nothing short of institutional failure. Todays agreement, sac capital will plead guilty to all five counts in the indictment. The result is 1. 8 billion in fine and forfeiture. The largest penalty in an insidertrading ever. More importantly sac capital will terminate investigations and be required to have real genuine compliance overseen by an independent expert. In laymans terms, sac will no longer be able to invest anybodys money but their own. As todays plea illustrates, sac institutionalized the practices by cultivating a culture of corporate corruption. To those on the street who attribute his character to gordon gecko. Principles are as important as your profit. The problem of insidertrading israel and for companies that willfully turn a blind eye beyond notice, commack, be on notice. How your Companies Make money is just as important as how much they make. Today is not the end. Investigation into Insider Trading on wall street, on main street and hedge funds and experts networking firms and anywhere else continues. We will relentlessly pursue this anticompetitive criminal behavior until every portfolio manager, every trading desk, every Hedge Fund Owner stopped trading on Insider Information. Thank you. Thank you, april. Happy to take your questions. Todays announcement is in respect to the companies charged by this office on july 25 and resolution is limited to those companies and as i said before and will repeat again, there is no immunity protection of individuals from criminal prosecution or investigation. It means as it always means in any criminal case, if somebody misbehaves, there is additional penalties that can be brought to bear. I will refer you to the plea agreement itself to play that out. [inaudible] speak of the agreement is them to plead guilty but appropriate corporate representative at a time the judge or the judge approves the agreement would set sometime in the future, but yes. That can all happen in one proceeding. About how that judg judge woulde to handle it here. Sometimes plea agreements are corporations, this time it is a straight plea. [inaudible] i dont remember the answer to the last question, i will refer you to the document. Where does the money go . It goes to the United States treasury independent with claims are made be distributed thereafter. It all goes to the same place. It is used in the same way all money forfeited in criminal penalties, in that same fund. As a defendant, i know this does happen. Can you explain to us how the companies are almost destroyed. What i make clear in the remarks and with the companies have made clear is that obviously this money that exists in corporations and sometimes bound up in securities and sometimes held in part in cash, made clear wherever this is coming from, it is not coming from the Holdings Held by outside investors in this fund. You can draw your conclusion to what that means then. If it were to reconfirm, he would still be suspect to those compliance . These are proposed agreements