Florida Atlantic University, a laughingstock, seems to have decided to do what it can to make itself less ridiculous.
Florida Atlantic University, a laughingstock, seems to have decided to do what it can to make itself less ridiculous.
True, Halsey imploded before UVA could make him, like Cohen at Brown, a trustee. And true, Cohen’s ten billion dollar personal fortune puts Minor – who used to have two billion but is currently bankrupt ($100 million in debts; only $50 million to pay them — we’ve all been there) – to shame. But both men are big presences, big benefactors, at these two universities; and as both men fall apart, the universities look rather like Elinor in Sense and Sensibility, who laments to her sister that humiliation was “forced upon me by the very person whose prior claims ruined all my hopes.” (In Elinor’s case that would be a romantic rival, while in the present matter we are talking about creditors.)
Now, Cohen is far from bankrupt, but it’s pretty clear that his firm’s way-serious legal problems are emptying his hedge fund a mile a minute; and just as Minor’s pledged twenty-five million dollar gift to UVA seems to have disappeared, I’m thinking that any amazing largesse of that sort Cohen might have been contemplating in relation to Brown is similarly imperiled.
In late April, lawyers for [Steven A.] Cohen and his firm met with federal prosecutors in Manhattan to make their best case argument about why the hedge fund billionaire and his SAC Capital Advisors should not be charged with criminal wrongdoing. But people familiar with that meeting said the lengthy presentation did not impress federal prosecutors, who are now considering whether to use a racketeering law aimed at prosecuting the Mafia and drug gangs to pursue a criminal case against Cohen’s hedge fund.
If you’re Brown University, it’s champion! DUH! If this isn’t the perfect description of the perfect university trustee, UD doesn’t know what is!
This Business Week writer turns a bit dour toward the end of his article about Brown University’s highest-profile trustee:
Markets are moody. No matter how smart you are you’re going to make mistakes. And that’s why [Steven A.] Cohen looks suspicious. While it’s certainly possible for someone to produce a 30% or better annual return for 18 consecutive years through smarts, it’s not likely.
Cohen has been subpoenaed.
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After five years of being chased like Al Capone, an immunized Cohen might finally be able to stop looking over his shoulder.
Yes, time for him to devote more time to sharing his gravitas with Brown University.
Now’s the time for Brown University to inaugurate a Steven A. Cohen Legal Defense fund, as the federal government begins to look as though it might move against that university’s most high-profile trustee.
True, for now Cohen has not been charged; and for now his personal fortune is close to ten billion dollars. But he may be charged; and already he has what Bloomberg News calls “fleeing clients” costs. Just in case things do go south for him, this would be a fitting continuation of the support of the hedge fund manager that the Brown Corporation has thus far maintained.
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At least he’s in good company.
By seeking Mr. Cohen’s testimony, federal prosecutors could be trying to get him lie before the grand jury, legal experts say. This way, they could try to charge him with perjury instead of insider trading, which was a similar tack that the government took in its criminal case against the media personality Martha Stewart.
… of that very curious trustee, Steven Cohen, the man whose investment firm keeps turning up in the news. The government seems to think it’s an illegal enterprise, and indeed some of its traders seem headed for prison.
And as investors take their money out of the firm (unlike Brown, which stands stalwart behind Cohen, the investors recognize a sinking ship when they see one), SAC has said in a letter that it’s not going to cooperate with the SEC investigators “unconditionally” anymore.
So… things are fraying at SAC… but Brown University, which has had trouble with trustees, not to mention presidents, before, is apparently going to play the game out, thus solidifying its reputation as the academic institutional embodiment of American greed and illegality.
Our football team has not achieved the success we would have liked to have seen over the years, but we have had pockets of success that inspire. How about our three Aggie players drafted into the NFL for three consecutive years! For those who watched, NMSU beat Minnesota two years ago — there was a state of elation that had people talking the whole season. Who can deny that a win against our major rivals — UTEP or UNM — creates electricity and enthusiasm for a unified Aggie Nation! My challenge to all of us is to get behind and support our teams that represent us with such pride. Anyone can criticize. It takes fortitude to be a supporter on our way to achieving the success we desire.
I am proud of New Mexico State University. If we aspire to be known as one of America’s great universities, we are going to need to act like we are one of those universities today! That is what is called vision! When we believe in our vision; when we support our faculty; when we support our staff; when we support our administration; when we support our coaches and athletic director; and yes, when we support our board of regents; success will be ours! It takes courage to stand tall in the face of criticism. It takes heart to support our student-athletes who are giving it their all, each time that enter a competition. It takes special people to take NMSU to a new place, and I believe we are in a place in our history, with people of passion, who can help us get there!
Stand tall! Anyone can criticize!!
… alright then.
University of Texas System Regent Wallace Hall, who was criticized for not disclosing all of his lawsuits when he applied to join the board, has provided Gov. Rick Perry’s office with an updated list.
The original application contained information about two lawsuits and a bankruptcy.
In new disclosures provided to the governor’s office on April 12, Hall provided detailed information, including case numbers, on 11 lawsuits and detailed information about a complicated bankruptcy, with multiple appeals…
A rather mushy editorial from the University of Cincinnati AAUP notes the absence of anyone who knows much of anything about education on the university’s board of trustees. Why not take advantage of what the writer delicately calls Stan Chesley’s “legal difficulties,” and replace him with a person who knows more about universities than about making money?
Chesley, you recall, is the disgraced former BOT member whose “astounding greed” has gotten him disbarred in multiple states.
It’s true that once you wipe out all traces of knowledge about universities from your BOT and pack it full of hedgies and Chesleys and bears oh my, you run the risk of serious institutional embarrassment when the SEC or some other agency comes after one of them. UD has followed many stories of BOT members who’ve resigned in disgrace because of shady business dealings.
The editorial writer is certainly correct that viewing your Board of Trustees as an ATM machine is unwise.
Stanley Chesley, big important rich dude in Cincinnati, got his friend the mayor to defend him as “someone who always stands up and fights for the little guy.”
Seeing as Chesley’s multiple recent disbarments have to do with him ripping off the little guy for millions and millions of dollars in profit for himself, the mayor’s defense seems a bit off.
Anyway, it didn’t work. His fellow trustees at the University of Cincinnati “gave Chesley until 5 p.m. on Monday to resign.” Chesley refused, maybe figuring that fantastic defense from the mayor would do the trick.
After a few days, though, Stan figured out the way things were going and resigned. Not only from the university, but from his law practice.
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One of the committees that argued for Chesley’s disbarment referred to his “astounding greed.” If astounding greed barred people from university trusteeships, we’d need to get accustomed to three-person BOTs… You don’t even see Brown University scrutinizing Steven Cohen. On the contrary, they’re defending the guy.
I think Brown’s approach is jail or nothing. If not jail, he can stay.
And he’ll stay there. He’s paid his way out of his trouble. And he’s endowed the school of finance with his (possibly) ill-gotten gains.
Nothing to see here. Fine model for the finance students.
… gets more front-page New York Times publicity today.
… FBI agents showed a former trader a sheet of paper with headshots of his former colleagues, with Mr. Cohen at the center. The agents compared the SAC founder to an organized crime boss who sat atop a corrupt organization.
Of course, if you ask UD, it’s disgusting enough that Brown University, with its talk of doing good for the world, has among its trustees someone who can’t think of anything better to do with $155 million than buy a Picasso with it. What a role model for the students.
An intellectual model too. His situation prompts the following logic challenge: