SEC files feeble action against Steven Cohen
After years of investigating the hedge-fund founder, the most regulators can come up with is that he's a bad boss.
The Securities and Exchange Commission accused Cohen of "failing to supervise" employees. And while The New York Times calls it a "serious blow," it's hard to see this as very damaging.
The billionaire has so much money that this year alone he has dropped $23 million on a West Village condo, $155 million on a Picasso and $60 million on a Long Island oceanfront mansion.
Now, if the SEC gets its way, Cohen may be barred from overseeing investor funds. It's hard to imagine Cohen shedding a tear over that.
This seems like a slap on the wrist for Cohen personally after the company he founded, SAC Capital Advisors, paid $616 million to settle insider-trading charges with the SEC without admitting any wrongdoing. Regulators didn't charge Cohen with fraud or anything criminal.
Instead, he's getting painted as an ignorant boss who didn't keep his workers in line.
Twitter users were less than impressed with the SEC's prowess here. "Breaking: SEC charges Steve Cohen with poor penmanship, posture," wrote one. "After all that, Steve Cohen gets accused of 'failing to oversee?' Clear who won that one," wrote Business Insider's Henry Blodget. "SEC to force Steve Cohen to retire to his 40-acre mansion, pay fines that cost less than his lunch," wrote another user.
The government has long suspected insider trading at SAC, and has already charged two of Cohen's employees with illegally trading pharmaceutical and technology stocks, The Washington Post reports. But the SEC has never been able to get Cohen.
Instead, investigators said Friday that Cohen failed to follow up after learning about red flags showing his employees may have been trading illegally.
So Cohen, who at age 57 is the 35th richest person in the U.S., may be banned from overseeing investor funds. But this issue is a long way from being resolved: SAC says in a statement that Cohen will fight the charge.
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WHEN ARE THEY GONNA ARREST BARNEY FARTY FRANK AND DOODY DODD FOR THEIR BS
MISERABLE BILL THAT HAS MADE THINGS WORSE? OR FANNIE MAY FREDDIE MAC?
OR DEMOCRATS FOR BUYING STOCK IN HEALTHCARE COMPANIES THEN NOT READING
THE BILL BUT PASSING IT ANYWAY? ISN'T THAT FRAUD? OR OBAMA AND DEMOS FOR
THE FRAUD OF STIMULUS? WHERE'S THE SOYLANDRA AND STIMULUS MONEY NOW?
IN BIG UNIONS AND DEMOS AND FRIENDS AND FAMILY AND PROGRESSIVE GROUPS
POCKETS! THAT'S FRAUD! WHERE IS OUR SS AND MEDICAID MONEY? THEY TOOK IT
AND SPENT IT ON OTHER THINGS! THAT'S FRAUD! THE ENTIRE SYSTEM IS CORRUPT!
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[BRIEFING.COM] The major averages ended the Wednesday session on a mixed note. The Nasdaq (+0.4%) and Russell 2000 (+0.3%) posted modest gains while the Dow Jones Industrial Average (-0.1%) finished in the red. For its part, the S&P 500 (+0.03%) settled just above its flat line.
Stocks began the day in the red, but spent the first two hours of action in a steady climb off their lows. The cautious start took place amid broad-based weakness across major European markets where ... More
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