Will the Feds Try to Kill SAC Capital?

A couple of months ago, I asked if Steve Cohen, the billionaire hedge-fund manager, had bought off the U.S. government by agreeing to pay the Securities and Exchange Commission more than six hundred million dollars to settle an insider-trading case. It appears that the answer is no. With many on Wall Street waiting on tenterhooks for the dénouement of the SAC Capital story, the big question is whether Cohen will succeed in radically downsizing the firm, currently one of the world’s biggest hedge funds, on his own terms, or whether the Justice Department will issue it a death warrant.

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