Wednesday, 25 May 2016
Last updated 6 hours ago
Jul 1 2013 | 1:20am ET
SAC Capital Advisors’ clients may be skeptical that the firm will survive the insider-trading probe that currently haunts it, but Goldman Sachs appears to have no such concerns.
The Wall Street giant recently hired a banker whose biggest client is the hedge fund, which has suffered billions in redemptions amidst the federal probe, Fox Business Network reports. Jack Johnston, a stock salesman, was recently named a managing director at Goldman. Johnston was previously an executive director at Morgan Stanley.
“Goldman is obviously betting that whatever happens in the investigation, SAC and [firm founder Steven] Cohen will make it,” one source told FBN. “There’s no way that Goldman would offer someone whose biggest client is SAC a managing director spot if it thought SAC was going away.” But a Goldman executive told the network, “I wouldn’t read too much into this as far as SAC is concerned.”
Federal prosecutors are reportedly eager to hit SAC or Cohen with criminal charges. But they face a deadline this month to file some of the most serious charges.
Cohen and five other SAC executives were subpoenaed to appear before a federal grand jury, but the billionaire has declined the invitation, invoking his right against self-incrimination.
Johnson has been at Morgan Stanley since 2007; the bank was reportedly eager to hold onto the salesman due to his SAC link.