Goldman Sachs extends loan to Steven A. Cohen
NEW YORK May 6 (Reuters) - Goldman Sachs Group Inc is still doing business with Steven A. Cohen and extended a loan to the billionaire after his firm, SAC Capital Advisors, pleaded guilty to insider trading.
Goldman Sachs Bank USA, the parent of the bank for the ultra wealthy, filed a notice in February with the Connecticut Secretary of State that disclosed the loan.
The filing did not give an amount or say what Cohen pledged as collateral, but a person familiar with the matter said the investor put up "certain items of fine art."
The loan was first reported by Bloomberg.
Earlier this year, SAC returned billions of dollars to outside investors after a deal with the government forced the firm to stop operating as a hedge fund and managing money for clients.
Cohen transformed the business into a so-called family office that manages only his personal fortune, estimated at $9 billion. Last year, Cohen earned $2.4 billion, making him the second-best paid manager in the $2.7 trillion fund industry, according to Institutional Investors' Alpha's annual ranking of best paid managers.
SAC has long been a lucrative client for Goldman Sachs, and the bank stood by Cohen during the insider trading probe. Cohen was never personally charged with any wrongdoing.
Art loans have become a popular way for wealthy art collectors who are also investors to borrow money at relatively low rates and then reinvest the money in their own funds to earn more in returns.
Cohen, a prominent art collector who bought Picasso's Le Reve for $155 million last year, has spoken publicly about how he enjoys touring galleries and browsing for art. (Reporting by Svea Herbst-Bayliss. Editing by Andre Grenon)