Bank of America, JPMorgan and Morgan Stanley are among Wall Street banks continuing to trade with SAC Capital Advisors LP after U.S. prosecutors indicted the hedge fund for insider trading, according to four people briefed on the matter.
Bloomberg News reports that the firms are still providing trading and prime brokerage services to the hedge fund founded by Steven Cohen, said the people, who asked not to be identified talking about a specific client.
The government has no plan to freeze fund assets, prevent redemptions or affect interests of SAC counterparties, Stamford, Connecticut-based SAC said yesterday after the government’s criminal charges were made public.
Banks have been grappling with the reputational and financial consequences of continuing their dealings with SAC, one of Wall Street’s largest trading clients. The $14bn hedge fund was indicted for perpetrating what prosecutors called an unprecedented insider-trading scheme.
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