Breaking News from CNBC's Kate Kelly: SAC's Cohen Considering Settling Civil Case with SEC

WHEN: TODAY, TUESDAY, MARCH 25TH

WHERE: CNBC'S "SQUAWK ON THE STREET"

Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.

KATE KELLY: WELCOME BACK TO SQUAWK ON THE STREET I AM KATE KELLY WITH SOME BREAKING NEWS ON SAC HEDGE FUND MANAGER STEVEV COHEN WHO I UNDERSTAND TO BE CONSIDERING SETTLING WITH THE SEC OVER CIVIL CHARGES THAT HE FAILED TO SUPERVISE TWO ERRANT EMPLOYEES THESE CHARGES FILED LAST JULY JUST DAYS BEFORE A PARALLEL CRIMINAL CASE WAS FILED BY THE JUSTICE DEPARTMENT AGAINST HIS FIRM SAC. SIX TO EIGHT MONTHS LATER A LOT HAS HAPPENED. THE FUND IS NOW ESSENTIALLY A FAMILY OFFICE IT WILL BE CHANGING ITS NAME IN A WEEK OR TWO. THE CRIMINAL SETTLEMENT FOR $1.8 BILLION IS EXPECTED TO BE SETTLED BY APRIL 10 AND IN THE MEANTIME THIS SEC CIVIL CASE IS SET TO RESUME. I AM TOLD THAT THE KEY FOR COHEN WILL BE THE NATURE AND LENGTH OF A PROPOSED SECURITIES INDUSTRY BAN OF SOME SORT. THE HEAD OF ENFORCEMENT LAST SUMMER WHEN THIS CASE WAS FILED AT THE SEC SAID THAT THEY ARE LOOKING TO BAN COHEN FROM MANAGING PUBLIC INVESTOR MONEY CARL. SO OF COURSE THE DEVIL IS IN THE DETAILS FOR COHEN A VERY HANDS ON MANAGER. HE ACTUALLY IS NO LONGER MANAGING PUBLIC MONEY FOR THE MOST PART BUT THE QUESTION WILL BE CAN HE PROVIDE STRATEGIC ADVICE. CAN HE TRADE ASSETS? CAN HE MANAGE HIS OWN TEAM? ALL OF THAT WILL BE AN ISSUE AS THEY LOOK TO RESOLVE THIS ONE WAY OR THE OTHER.

About CNBC:

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 371 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 at night is the all new CNBC Prime featuring a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC including "American Greed" and "Crime Inc." and a number of distinctive in-house documentaries.

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 at http://www.nbcumv.com/mediavillage/networks/cnbc/