Friday, 25 July 2014
Last updated 6 hours ago
May 9 2011 | 1:30pm ET
With his own trades at SAC Capital Management now under criminal scrutiny, Steven Cohen is facing another regulatory indignity.
Sen. Charles Grassley (R-Iowa), the senior Republican on the Senate Judiciary Committee, has asked the Financial Industry Regulatory Authority to turn over all reports of "suspicious trading" by SAC submitted to it by exchanges over the last 11 years.
Neither Cohen nor SAC itself have been formally accused of any wrongdoing—indeed, prosecutors say their current look at Cohen's trading at SAC, stemming from the guilty pleas of two former SAC traders, is no indication that trades he made on their recommendation were based on confidential information or, if they were, that Cohen had any inkling of it. But the firm, and Cohen himself, have long appeared to be a major target of the investigation which ensnared the two former SAC employees and 10 others. And both Cohen and the firm have been the subject of a number of investigations and innuendos.
"While SAC Capital itself has not been charged, these allegations raise serious questions about the corporate culture at SAC Capital and undercut investor confidence in a fair and balanced playing field," Grassley wrote. "In order for Congress to more fully understand the potential scope of suspicious trading activity at SAC Capital, please provide copies of all referrals from self-regulating organizations to the Financial Industry Regulatory Authority citing SAC Capital and any of SAC Capital's identifiable subsidiary funds, dating from Jan. 1, 2000, to the present."
FINRA said it would respond "in a cooperative way" to Grassley's demands within days.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…