World's Greatest Trader In Serious Trouble?

Posted by Sean Doyle, November 22, 2010.

Photo Courtesy of Vanity Fair.

Steven A. Cohen, kingfish of the mammoth SAC Capital and holder of WSB's unofficial appellation "World's Greatest Trader" (see here and here) may be in the sights of FBI. According to Henry Blodget of Business Insider, a major goal of the government's huge investigation into institutional insider trading is "nailing SAC Capital." Say it ain't so Stevie!

This afternoon, according to the Wall Street Journal, the FBI raided the offices of Level Global and Diamondback Capital Management, two hedge funds run by former managers at SAC Capital. Level Global is run by David Ganek, who like his mentor is an avid art collector with a knack for picking stocks. Diamondback Capital is run by Richard Schimel, another decorated SAC alum.

Rumors have long circulated that Steve Cohen was the object of an FBI investigation, and thanks largely to a disgruntled ex-wife his once stellar reputation has taken a hit in recent years. However, after all of this scuttlebutt, is Cohen the biggest fish the FBI has in their ever widening net?

Image by Sean & Colin Doyle.

Perhaps there is an even bigger figure in this insidious institutional insider trading debacle. One who posses even more power than Stevie Cohen. A man long rumored to be the Dark Lord of the Sith himself....Lloyd Blankfein!

Only time will tell on this front. Until then, let's hope Steve Cohen is innocent as he has been a hero to many traders, including this one.

Here's some linkage:

NetNet w/ John Carney: "The Government May Still Have Nothing On SAC Capital."

Forbes: "Wall Street Braces For Insider Trading Charges."