SAC Capital Advisors’ Steven 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 via CNBC that includes verbal sparring with the lawyer questioning him.
Steve Cohen’s video deposition
Frontline said the deposition was taken as part of a 2011 civil suit brought by the Canadian insurer Fairfax Financial Holdings Ltd (TSE:FFH) (OTCMKTS:FRFHF).
Cohen objects to a question from attorney Michael Bowe over whether traders must “strictly adhere” to SAC’s compliance manual.
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.