“Wall Street now has to contemplate life without SAC Capital Advisors, the hedge fund that manages billions of dollars.
“In a rare and aggressive action, federal authorities on Thursday indicted the fund on criminal charges. And in doing so, the government may have threatened the life of a big golden goose for Wall Street.
“SAC Capital, led by Steven A. Cohen, has been a prodigious, unruly force in the market for years.
“Its whirlwind trading style has helped move stock prices. And the fund consistently pays millions of dollars in commissions and fees to prominent investment banks that handle its trading.
“Banks received $9.3 billion from clients in stock trading commissions in the 12 months through the first quarter of this year, according to a study by Greenwich Associates. Brokers said that SAC Capital was one of the largest commission generators for Wall Street.”
Read full New York Times article here