Cohen's SAC, prosecutors can't reach settlement

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SAC Capital's settlement talks with the U.S. government, initiated by prosecutors last month, are moving along incrementally, said someone familiar with the matter.

With the hedge fund balking at a financial penalty of close to $2 billion, any resolution could still be weeks away.

In mid-September, the government approached SAC about the possibility of settling its criminal case over allegations of securities and wire fraud, a person familiar with those discussions said at the time.

Officials at SAC, although eager to resolve the case since the firm's July 25 indictment, were surprised by the timing, this person said, thinking any settlement would likely have to wait until two court cases over alleged insider trading by individuals at the firm were resolved.