Did SEC Miss Chances to Nab Rajaratnam?

" more controversy around the SEC in Washington DC related to the gallium group hedge fund fraud case. -- regulators missed some very big chances and very big red flags. To head off fraud. Before got to work was today -- latest on this continued story let's keep this one simple first neither the SEC will comment because they have pending litigation against -- tried to -- them and of course down in hedge fund. They will not comment normal JPMorgan Chase and here's my JPMorgan Chase is important to this story. Article in the Financial Times this morning cites an internal memo from 2001 written by an analyst of JPMorgan Chase. Saying that they should reduced allocations. To. I Dahlia and because of this the quote there's more negative news about -- and his cohorts and quote and the second quoted. And now rod likes to operate in the gray areas now there's nothing there that says or indicates a fraud is taking place. But this is written in 2001. JPMorgan Chase will not comment the analyst who wrote that has left the bank. He was -- in the memo his friend and associate of mr. Roger -- who had worked with mr. Roger -- So this brings us up to 2009 if this memo had been shared with the SEC. Did they miss an opportunity perhaps to stop what is alleged to have happened again in with the insider trading. The FCC will not say they received any tips or any warnings about valiant or mr. -- run them prior to their filing a couple weeks ago against him. JPMorgan Chase the other question is do you have a responsibility and as a lawyer you might be able to answer this on a lawyer. As someone who -- logical as someone who went to law school and got a lot of great it counts for something. Do you have a responsible and this is a question for you. Do you if you -- fraud has taken place let's assume that they knew that this memo doesn't indicate that the new funds -- let's assume that someone editor of financial institution. Knows absolutely concretely that fraud is taking place at one of their clients or would want to -- counter parties. What is their obligation it's important question because so many people who were in the financial industry. May have to deal with this. The chain of command is once you discover the fraud that's concrete you go to your compliance. Department. Compliance then determines whether they have a contractual obligation to the client what their responsibilities are if they have a legal obligation to report. But it's not a direct you have to report the FCC to the FCC actually may be able to duck and cover on this."

" Although much of that it is my pour half asleep law school securities law class memory. Whose -- A lot of it will come down a relationship. And what the relationship was -- duty laws and JPMorgan Chase is making money off of information they suspected. -- good reason to believe was. Look I'm going to quote Eddie Murphy be carefully have relations. With -- trading places no it's from. The government professor. Relations never give it to them have again got it."

" Happy Halloween thank you out of here on the guy group hedge fund case and your vote Ryan William Michigan --"