When Gary Cohn worked at Goldman Sachs as the chief operating officer and president, he was a big fan of S.A.C. Capital and all the money they paid Goldman Sachs to trade stocks and invest in IPOs. Cohn didn’t seem too concerned about just how Steve Cohen (Yes, their names are confusingly similar) and S.A.C. Capital “trafficked in inside information”. Cohen is now the chief economic advisor to President Donald Trump (Yes, still weird to write that), do you think he’s going to worry about insider trading cases at Wall Street firms….?
“They have been an important client to us,” Goldman Sachs’s president, Gary Cohn, said on television about S.A.C., just days after the U.S. Attorney for the Southern District of New York called the firm a “magnet for market cheaters” and alleged that it had “trafficked in inside information” on a vast scale. Cohn called S.A.C. “a great counterparty.” (New Yorker)
S.A.C. Capital of course no longer exists, Steve Cohen was forced to close his hedge fund and pay a fine of $1.8 billion (Yes, that’s a lot of money even for Cohen), but he’s started a new hedge fund, Point72 Asset Management, where he trades his own money. I’m guessing he feels a bit at peace now that he’s got someone like Gary Cohn and other former Goldman Sachs partners working in the Trump administration.