By allowing the firm to plead guilty—rather than the man who created it, owns it outright, and runs it with an iron fist—today’s agreement also perpetuates the myth, visible in other recent Wall Street cases, that abstract corporate entities rather than flesh-and-blood humans are responsible for financial wrongdoing. Which, of course, defies the laws of physics. SAC Capital Advisors exists only on paper. It was the people who ran the firm that defined its culture and designed its peculiar internal structure, in which portfolio managers and analysts were encouraged to share their best investment ideas with Cohen directly. While Cohen wasn’t named as a defendant in any of the SAC insider-trading cases, court papers have alleged that, as the firm’s owner and chief executive, he “enabled and promoted” the wrongdoings.
If this is so, why isn’t he in the dock facing criminal charges?
Read the rest of the New Yorker Article here.