Reuters - Video



Breakingviews: Falcone mea culpa

Tuesday, Aug 20, 2013 - 03:01

Aug. 20 - Rob Cox and Breakingviews editors discuss hedge fund manager Philip Falcone’s SEC settlement and the rare admission of wrongdoing.

▲ Hide Transcript

View Transcript

Once high flying hedge fund manager Phil Falcone got some pretty bad news yesterday from the SEC. They basically find him -- and a half million dollars. They told me can't work in this town for five years but even more important they made him admit wrongdoing that you say Iran is the big and most innovative piece of this. Of this -- -- -- -- deal the enforcement division of the SEC had to deal earlier this year with the outcome which he agreed to pay two million dollars essentially for letting certain investors out of -- fund harbinger capital during the for a while he was taking a loan from a fiance a lot of his own taxes -- -- -- -- -- so you know eighteen million dollars. Didn't admit -- -- have been a crime to admit any wrong -- didn't -- of industry. New SEC chairman Mary Jo White said you know what this is not this is gonna fly in my heart and in my eyes he's I knew administrators -- -- Voted down the commission the whole committee voted down that settlement and had reached a new settlement with him that both yesterday is stuck in an oven and a harbinger of wrongdoing which is. Kind of pretty first time it's been done differently but I heard it certainly today was -- right now now but she is not the innovator of this harrowing days you're -- to come up -- -- all by itself. Probably not going back at 2011 judge -- break off rejected -- -- called Citigroup settlement of 285 million dollars where they sit here we're gonna pay the money. No admission of wrongdoing or denial and he said no send it sends a man I gotta put this I'm gonna -- -- -- -- you know far a much of FactSet -- you're not admitting to anything I don't know whether that this is -- a good deal or not I'm not gonna approve or. Big controversy other doctors said hey wait a minute of the same thing lava other settlements. SAC capital settled 600 million knows this -- he didn't bit wrong to go. And -- out it was his job that I'm not gonna -- that probably put a good test case right because if you -- if you believe that -- -- from the SEC. This book this borrowing of monies -- falcons taxes from the front well let's go back so yeah I'll loan and about a hundred and million plus million dollars to pay taxes is -- for a while he notices Keating. Quality locally that this is in the right under the difficult for a -- that it couldn't get that money -- imitate it but it was kind of like it was seriously how is no longer in if you -- it right believe -- -- -- -- it believes Lewis it's that men. Don't touch that that right. But he still bit that this is exactly it would have been redolent of the issues he'd like to and that's try to pick and and and -- -- -- -- this all the time because you know it's it's a real problem if you have to make everyone admit wrongdoing episode not going to be -- -- -- trial as he can't. Really -- can't. Costa that the whole an -- and -- title or the potential pollutants and I don't know -- -- the case which is kind of you know you're a hundred million dollars in taxes come some surprises bad accountant. They get it who knows and we'll talk more about that and other stories this week on breaking news.

Breakingviews: Falcone mea culpa

Tuesday, Aug 20, 2013 - 03:01

Top News »

Money »

Moving Pictures »