Video deposition: Cohen calls insider trading rules 'vague'
SAC Capital Advisors' Steven A. Cohen called federal insider trading rules "very vague" and asked for an explanation of the SEC's basic rule about it in a newly revealed 2011 videotaped deposition that includes verbal sparring with the lawyer questioning him.
This clip, and three others, were obtained by PBS' Frontline and posted on the program's website. It says that while transcripts of the deposition have been reported previously, the video has not been publicly available until now.
Frontline said the deposition was taken as part of a 2011 civil suit brought by the Canadian insurer Fairfax FInancial Holdings.
Here, Cohen objects to a question from attorney Michael Bowe over whether traders must "strictly adhere" to SAC's compliance manual.
In this clip, Cohen is asked a hypothetical question about trading on a stock based on knowledge a reporter was about to write a negative story.
In the fourth clip, he's asked whether he has read the federal rules on trading with nonpublic information.
In a deal announced Monday, SAC agreed to pay $1.8 billion to settle insider trading charges against the firm.
In response to the PBS video, a SAC spokesman said: "Steve Cohen could not have been more emphatic in the Fairfax deposition that he takes following the laws prohibiting insider trading extraordinarily seriously. The trial court thoroughly rejected Fairfax's claims."
UPDATED: A later version of this story includes a response from SAC.