Breaking News from CNBC's Kate Kelly: SAC Q2 Redemptions Were between $2B and $3B, Closer to $3B
WHEN: TODAY, MONDAY, JUNE 10TH
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. Following is a link to the video of the breaking news on CNBC.com: http://video.cnbc.com/gallery/?video=3000174629. All references must be sourced to CNBC.
KATE KELLY: SO DURING THE SECOND QUARTER REDEMPTION PERIOD THE DEADLINE OF WHICH WAS LAST MONDAY. SAC CAPITAL LOST BETWEEN TWO AND THREE BILLION DOLLARS IN ASSETS THE NUMBER IS CLOSER TO THREE FROM WHAT I AM TOLD BY MULTIPLE SOURCES. THIS OF COURSE COMES AMID AN INTENSIFYING GOVERNMENT INVESTIGATION INTO ALLEGATIONS OF INSIDER TRADING IN SAC AND GROWING CONCERNS THAT THE FOUNDER OF THE FIRM STEVE COHEN MAY HIMSELF BE INDICTED ALTHOUGH HE HAS STEADFASTLY MAINTAINED THAT HE DID NOTHING WRONG. DURING THE FIRST QUARTER AS YOU MAY REMEMBER SAC LOST $1.7 BILLION IN REDEMPTIONS ON PAPER. THAT MONEY WILL BE RETURNED THROUGH THE COURSE OF THIS YEAR. AND IN THE SECOND QUARTER IT APPEARS THAT GOT NOT DOUBLE THAT BUT CERTAINLY A HIGHER NUMBER CERTAINLY A NUMBER CLOSER TO $3 BILLION SO THIS IS MORE OR LESS IN LINE WITH EXPECTATIONS KELLY BUT IT IS STILL A BIG BLOW FOR A FIRM THAT ONLY STARTED THE YEAR WITH $6 BILLION IN EXTERNAL CAPITAL. NOW THE VAST MAJORITY OF THAT UNLESS IT IS REPLENISHED LOOKS LIKE IT MIGHT BE DEPARTING BY THE END OF THE YEAR.
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 390 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 16 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 8:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site athttp://www.nbcumv.com/mediavillage/networks/cnbc/