Sunday, 24 July 2016
Last updated 1 day ago
Nov 5 2013 | 8:11am ET
At least for now, SAC Capital Advisors is not wanting for banks.
The hedge fund giant, which yesterday agreed to plead guilty to insider-trading charges, is still doing business with many of the biggest financial firms in the U.S., including Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley, Bloomberg News reports. Each continues to provide trading and prime-brokerage services to the firm, which will pay a $1.8 billion fine and which will cease to manage outside capital.
It remains unclear which, if any, of the banks will continue to service SAC after it pleads guilty and becomes a family office, managing founder Steven Cohen's fortune. Goldman Sachs CEO Lloyd Blankfein in September explained that his firm continued to do business with SAC both at the urging of prosecutors, who reportedly did not want SAC to collapse prior to a conviction, and because they had only been indicted.
SAC's settlement agreement still requires the approval of two federal judges, and the hedge fund can back out of the deal if either seeks to impose harsher penalties.