NEW YORK May 6 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
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)