Breaking News from CNBC's Kate Kelly: SAC Considering Moving Family Office into New Corporate Entity
WHEN: Wednesday, November 6th
WHERE: CNBC's "Closing Bell"
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. Following is a link on CNBC.com: http://video.cnbc.com/gallery/?video=3000215382.
All references must be sourced to CNBC.
KATE KELLY: SOME NEWS FROM SAC CAPITAL IN STAMFORD. OBVIOUSLY A COUPLE OF DAYS AFTER AGREEING TO SETTLE WITH GOVERNMENT FOR ALMOST $2 BILLION. CHARGES THAT THEY ALLEGEDLY ENGAGED IN INSIDER TRADING. APPARENTLY, THEIR PLANS TO MOVE TO A FAMILY OFFICE STRUCTURE MAY VERY WELL INVOLVE SETTING UP A NEW ENTITY WITH A NEW NAME – YET TO BE DETERMINED. AND SAC CAPITAL, WHICH IS FOR 20 YEARS BEEN ONE OF THE MORE ACTIVE AND SUCCESSFUL HEDGE FUNDS ON THE MARKET, WOULD ESSENTIALLY BECOME A HOLDING COMPANY FOR SOME ILLIQUID ASSETS INCLUDING PRIVATE EQUITY, MEZZANINE LOANS, AND RIGHT NOW, THEIR SAC REINSURANCE ARM, WHICH IS IN THE PROCESS OF BEING SOLD. FINALLY, STEVE COHEN FIGHTING THE SEC IN TERMS OF A CIVIL CASE FOR FAILURE TO SUPERVISE EMPLOYEES. THE SIGNAL FROM SAC RIGHT NOW IS THAT THEY ARE GOING TO FIGHT THAT CASE. THEY HAVE TOLD EMPLOYEES THAT THEY BELIEVE IT IS, "WITHOUT MERIT" AND THEY ARE SENDING SIGNALS, MARIA, THAT THEY ARE UNLIKELY TO SETTLE IN THAT CIVIL CASE.
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/