NEW YORK, July 31 (Reuters) - Goldman Sachs' chief
operating officer said on Wednesday Steven A. Cohen's embattled
hedge fund SAC Capital Advisors was still "a great counterparty"
and "an important client" to Goldman.
Gary Cohn, speaking on the television channel CNBC, said the
indictment of SAC by U.S. prosecutors in New York last week had
not affected Goldman's business with the $14 billion fund.
Cohn's comments on Wednesday seemed to bolster the idea that
SAC was operating normally.
"We're continuing to do business with SAC Capital," he said.
"They're an important client to us, they have been an
important client to us and that's where we are with them.
Prosecutors charged SAC with securities fraud and wire fraud
on Thursday, claiming the hedge fund had built a corrupt
business culture in which its employees were encouraged to use
any means necessary - including those violating insider trading
laws - to find the best "edge" in stock trading.
Prosecutors simultaneously filed a civil forfeiture action
against the firm and its affiliates seeking penalties for money
laundering. An SAC spokesman said on Thursday none of SAC's bank
accounts were frozen and the government's action was not
intended to affect the firm's ongoing operations.
"We continue to trade with them and they're a great
counterparty," Cohn said.