Breaking News from CNBC's Kate Kelly: SAC Moving Closer to Settlement with Justice Officials
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.
KATE KELLY: I HAVE SOME NEW DETAILS ON SAC, THE HEDGE FUND, SETTLEMENT TALKS WITH THE SOUTHERN DISTRICT OF NEW YORK – THE JUSTICE DEPARTMENT ARM THAT HAS BEEN PURSUING THEM FOR INSIDER TRADING. I'M TOLD TALKS ARE MAKING INCREMENTAL PROGRESS AND IN FACT, WE COULD POTENTIALLY SEE A DEAL AS EARLY AS THE END OF OCTOBER THAT THE FINE CURRENTLY BEING DISCUSSED IS IN THE REALM OF $1.5 BILLION. ALTHOUGH A KEY ISSUE IS WHETHER OR NOT A PRIOR SETTLEMENT THAT SAC ALREADY PAID WOULD BE DEDUCTED FROM THAT. I'M TOLD THAT SAC BECOMING A FAMILY OFFICE IS ACTUALLY NOT SOMETHING CURRENTLY ON THE TABLE AS PART OF THESE DISCUSSIONS, ALTHOUGH IT IS A LINGERING ISSUE IN GENERAL. AND PERHAPS IN A NOD TO THAT, FOUNDER STEVE COHEN IN THE LAST FEW YEARS AND ESPECIALLY THIS YEAR, HAS ACTUALLY DOWNSIZED THE SIZE OF HIS OWN PERSONAL TRADING BOOK, MANDY AND BRIAN. SO KIND OF AN INTERESTING DEVELOPMENT THERE AND I'M TOLD HE LIKES TO BE PREPARED FOR ANYTHING. THEY REORGANIZED THE FIRM AWHILE AGO, BUT NOW OBVIOUSLY, THERE ARE SOME LEGAL ISSUES TO THINK ABOUT AS WELL.
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