NEW YORK (Reuters) - Goldman Sachs’ (GS.N) chief operating officer said on Wednesday Steven A. Cohen’s embattled hedge fund SAC Capital Advisors was still “a great counterparty” and “an important client” to Goldman.
Gary Cohn, speaking on the television channel CNBC, said the indictment of SAC by U.S. prosecutors in New York last week had not affected Goldman’s business with the $14 billion fund.
Cohn’s comments on Wednesday seemed to bolster the idea that SAC was operating normally.
“We’re continuing to do business with SAC Capital,” he said.
”They’re an important client to us, they have been an important client to us and that’s where we are with them.
Prosecutors charged SAC with securities fraud and wire fraud on Thursday, claiming the hedge fund had built a corrupt business culture in which its employees were encouraged to use any means necessary - including those violating insider trading laws - to find the best “edge” in stock trading.
Prosecutors simultaneously filed a civil forfeiture action against the firm and its affiliates seeking penalties for money laundering. An SAC spokesman said on Thursday none of SAC’s bank accounts were frozen and the government’s action was not intended to affect the firm’s ongoing operations.
“We continue to trade with them and they’re a great counterparty,” Cohn said.
Reporting By Lauren Tara LaCapra and Emily Flitter; editing by Andrew Hay