The following video is from Tuesday's MarketFoolery, in which host Chris Hill and Motley Fool analysts Tim Hanson and Matt Koppenheffer take a Foolish stroll through the biggest business and investing stories of the day.
Hedge fund giant SAC Capital will pay a fine of $1.8 billion as part of a deal requiring the company to plead guilty to criminal fraud charges. The fine will be the largest ever for insider trading. In today's lead story on MarketFoolery, Tim and Matt discuss the hedge fund's manager, Steve Cohen, and his future as well as that of SAC, and they also take a look at how this may affect some of the big banking institutions that do business with SAC, such as Goldman Sachs, Citigroup, and JPMorgan Chase.
Also, in what will be the third-largest pharmaceutical settlement in U.S. history, Johnson & Johnson has agreed to pay more than $2.2 billion in criminal and civil fines to settle accusations that it improperly promoted the antipsychotic drug Risperdal to older adults, children, and people with developmental disabilities. JNJ CEO Alex Gorsky served both as the vice president for sales and marketing, and later the president, of the company's pharmaceutical unit during the period in question, between 1999 and 2005. Should Gorsky be ousted for his role in the scandal? Matt and Tim discuss Alex Gorsky, Johnson & Johnson, and the severity of the accusations.
And finally, the guys give their thoughts on the merger between TRI Pointe Homes and Weyerhaeuser.
A bank built to last
Should big bank investors be worried after the implosion of SAC Capital? Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable standout. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.