SAC Shuttering London Office
First Chicago, now London. it will close its London office by year-end as a result of the investigation. Conheeney delivered the news to the London employees in person, which was a class act we don't often see in this business anymore (nowadays you just get an email). For those who think the proposed settlement and rumored billion-dollar fine are no big deal, you've got another think coming:has announced
"As our negotiations with the government have unfolded, it has become clear to us that the outcome the government is demanding is likely to have a greater than first anticipated impact on the firm," Conheeney wrote in the memo, a copy of which was obtained by Reuters. "We have concluded that we must operate as a simpler firm and reduce our capital allocations."
He said the decision to close the office "was not something we had been contemplating."
We're literally down to the wire on the negotiations now, and a deal could be announced any day. My personal speculation is that the only thing left to negotiate will be whether or not Cohen will ever be allowed to manage outside capital again. No matter what the final settlement looks like, I think we can expect the DOJ to spike the ball in the endzone on this one.
It's unfortunate for the London crew (and potentially unfortunate for the entire SAC crew if the DOJ is successful in gelding Cohen), but it's the nature of the biz these days.
I get the feeling that the screw-ups of a few bad actors at any given firm are going to have a larger and larger impact on their organization as a whole going forward, and that doesn't bode well for junior guys (who really have no control over anything). Best thing I can advise is to be on the lookout for shady shit and be ready to jump ship if and when you see it.
So what's the over/under on Stevie getting a lifetime ban?