Over the past year or so, Steve Cohen has had to swallow several bitter pills in order to continue doing what he loves– trading stocks– and not further incite the Securities and Exchange Commission, the Justice Department, and Preet Bharara. He’s written a check for over 600 million dollars and another one for $1.2 billion. He’s returned all investor money to people not related to him by blood or marriage. He’s said good-bye to friends. Most recently, he made the ultimate sacrifice when he agreed to change the name of the firm1 from his initials to Point72 Asset Management, rendering a walk-in closet full of SAC Capital fleeces utterly useless.
And although the sight of a distraught Cohen fighting with his lieutenants over the name change, of him scooping up a pile of fleeces and shouting “What the hell am I supposed to do with these?!” before collapsing atop them and whispering, “Alright…alright,” of his President and GC and CFO standing awkwardly around him as he buried his face in the zip-ups and vests before sending everyone away and letting him be alone with them, of a single tear rolling down his face as he slowly traced the stitched on ‘S’ and then the ‘A’ and finally the ‘C’ should have been enough…
…he’s not yet finished paying for his sins.
With his firm’s settlement with the U.S. Justice Department over criminal insider trading likely to be finalized soon, Steve Cohen is mulling an out-of-court resolution to a parallel Securities and Exchange Commission case in which he himself is the defendant, according to people familiar with the matter. In recent weeks, say these people, Cohen and his advisors have been discussing the possibility of settling civil charges that he failed to supervise employees who engaged in criminal insider trading, despite indications of potential misconduct that, the SEC has argued, should have served as red flags.
1. No one forced him to do this, but it was obviously an emotional decision nevertheless.↩