After six years of scrutiny, and repeated legal action against those around him, Steve Cohen remains a free man. His $15bn hedge fund SAC Capital is still in business and he still firmly maintains his innocence, despite the evident disbelief of regulators and prosecutors. It is time to prosecute him.
Before the Abacus synthetic CDO that led to Goldman Sachs being accused of securities fraud came the CDO deals associated with Magnetar, the Illinois-based hedge fund.
Now Magnetar has come out fighting against accusations from ProPublica, the online news group, that it helped to stoke the US housing bubble in order to short its CDOs with astronomy titles such as Libra and Norma. Read more
I’ve written a news commentary for Monday’s FT on the Goldman case:
In taking on Goldman Sachs, the most successful and prestigious investment bank on Wall Street, and accusing it of securities fraud, the Securities and Exchange Commission has its work cut out. Read more