SAC Capital Plans to Rebrand Following Insider Trading Settlement
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The magic of psychology is about to be at work once again.
According to the NY Times, Steve Cohen's SAC Capital Advisors is planning to change its name and corporate structure over the next four to six weeks. Following a settlement with authorities in its insider-trading case, SAC will no longer be able to accept outside funds and will have fewer legal entities. The only money being managed will be that of employees and Cohen's personal $9 billion fortune.
Cohen will still be CEO of the firm; the reshuffle is likely to add only another layer of management between Cohen and the firm's existing traders.
Deutsche Bank (NYSE: DB), one of the firm's lenders and trading partners, was said to stop doing business with SAC. Other banks on Wall Street are likely to follow. The change reflects a fall from grace for Cohen. At one time, banks clamored to work with the firm given its vast size drew robust commissions for the institutions.
You can read more on the NY Times report here.
Changing the firm's name will allow Cohen to erase its marred past. Building back his reputation, however, will take Cohen a little while longer.
According to the NY Times, Steve Cohen's SAC Capital Advisors is planning to change its name and corporate structure over the next four to six weeks. Following a settlement with authorities in its insider-trading case, SAC will no longer be able to accept outside funds and will have fewer legal entities. The only money being managed will be that of employees and Cohen's personal $9 billion fortune.
Cohen will still be CEO of the firm; the reshuffle is likely to add only another layer of management between Cohen and the firm's existing traders.
Deutsche Bank (NYSE: DB), one of the firm's lenders and trading partners, was said to stop doing business with SAC. Other banks on Wall Street are likely to follow. The change reflects a fall from grace for Cohen. At one time, banks clamored to work with the firm given its vast size drew robust commissions for the institutions.
You can read more on the NY Times report here.
Changing the firm's name will allow Cohen to erase its marred past. Building back his reputation, however, will take Cohen a little while longer.
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