Friday, March 15, 2013

SAC Settles Charges


SAC Settles Charges

SAC has settled insider trading charges with the SEC and will pay $614 million.  I’m sure I’ll have more to say on Monday, but a quote attributed to the SAC says it all:  "We are committed to continuing to maintain a first-rate compliance effort woven into the fabric of the firm."

Clearly, there was no compliance culture at SAC, or this type of systemic abuse would not have occurred.  The idea that SAC will "continue to maintain a first-rate compliance effort" suggests that they haven't learned anything.

If the SEC won't shut the firm down, the investors ought to force SAC to close by withdrawing their funds.

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