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Speaker 1: Now it's time for our daily Bloomberg lab brrief, exploring

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Speaker 1: legal issues in the news, and today Bloomberg, La Hoos

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Speaker 1: stun Grosso and Greg Store discussed the Supreme Court decision

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Speaker 1: which upheld at California insider trading conviction, making it easier

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Speaker 1: for prosecutors to bring cases against Wall Street. They speak

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Speaker 1: with Peter Henning, a professor at Wayne State University Law School,

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Speaker 1: and Robert Hawckett, a professor at Cornell University. Peter, Um,

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Speaker 1: why don't we just start just give us the facts

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Speaker 1: of this case. This is not one of those big

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Speaker 1: Wall Street cases that everyone has been talking about so much. No,

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Speaker 1: I mean, this case came out of California. You had

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Speaker 1: one brother, UM in the case, worked as an investment

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Speaker 1: banker doing healthcare deals, and he told his brother, who

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Speaker 1: he was very close to, and the government showed that

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Speaker 1: at trial he gave his brother information about impending deals,

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Speaker 1: essentially to help his brother out. Now, UM, one brother

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Speaker 1: was going to get married and UM, his new wife's

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Speaker 1: brother was the defendant in this case. Mr Salmon and

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Speaker 1: Mr Salmon got the information and then traded on it

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Speaker 1: knowing that it came from the brother. And so the

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Speaker 1: core issue in the case was did the one brother

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Speaker 1: have to give any tangible benefit, something almost pecuniary to

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Speaker 1: the other brother or was the warm and fuzzy feeling

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Speaker 1: that a relative gets when giving a gift to another relative?

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Speaker 1: Was that enough to establish insider trading? And the Court said,

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Speaker 1: the warm and fuzzy feeling can be enough, Bob. So

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Speaker 1: did the Supreme Court basically go back to its own

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Speaker 1: decision in in Dirk's to make this ruleing not really

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Speaker 1: changing the law? That's right, Yeah, it definitely did. When

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Speaker 1: you had Peter and I on before the day that

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Speaker 1: the oral arguments were held this autumn, we both noted

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Speaker 1: that really this law was settled long ago by the

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Speaker 1: Dirk's decision, and there wasn't any appreciable distinction, it seems

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Speaker 1: to us, between the facts of this case, uh and

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Speaker 1: those of Dirks. Justice Alito actually said just direct, quite directly,

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Speaker 1: that Dirk's itself suffices to settle this case. And as

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Speaker 1: Robert Hackett, a professor at Cornell University and Peter Henning,

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Speaker 1: a professor at Wayne State University Law School, speaking at Bloomberg,

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Speaker 1: LA host student Grasso and Greg Sture, you can listen

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Speaker 1: to Bloomberg Law weekdays at one pm Wall Street Time

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Speaker 1: here on Bloomberg Radio and among the top stories we're

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Speaker 1: following on Bloomberg Law. Times have been tough for the

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Speaker 1: city of San Bernardino, California, and a bankruptcy judge will

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Speaker 1: sign off on a debt adjustment plan for the city.

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Speaker 1: She says everyone involved will take some kind of hit.

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Speaker 1: San Bernardino bond holders we get of what they're owed,

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Speaker 1: and city employees must pay more toward their own pensions.

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Speaker 1: And that's this morning's Bloomberg lawbry. If you can find

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Speaker 1: more legal news at Bloomberg Law dot com and Bloomberg

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Speaker 1: d NA dot com. Attorneys will find exceptional legal research

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Speaker 1: and business development tools there as l Visit Bloomberg Law

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Speaker 1: dot com and Bloomberg b NA dot com for more information.

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Speaker 1: H