…has just been moved forward.
[Steven Cohen] maintains his innocence, despite SAC agreeing to pay the biggest insider trading fine levied by the SEC. Not only his reputation, but that of his industry, now rests on it.
One of America’s great universities is in the trust of the current biggest target of the Securities and Exchange Commission.
UD assumes there’s a person at Brown whose full-time job, at this point, is Steve-watching. If Cohen is pulled in by the government, and is still on Brown’s board at the time, it will be embarrassing for Brown, which has already had to dump one trustee for attracting the attention of the SEC… and there’s the recent embarrassment over its ex-president’s activities on the Goldman Sachs compensation committee…
Yes, in defenestrating Steve, Brown stands to lose not just millions but perhaps billions of dollars, Steve being the kind of guy who routinely takes in billions in compensation. But look at it this way: SAC is losing clients very rapidly, what with all the bad publicity. Steve will be paying a huge chunk of his billions in his own defense; and of course the firm has just paid out that big ol’ insider trading fine. There will be lawsuits against SAC by investors. Etc. The money might not be there anyway.