SAC Capital founder Stevie Cohen reportedly got a Reuters story about insider trading allegations spiked.
“Goldstein’s story was an ‘incremental’ advance in the reports swirling around Cohen that he engaged in insider trader during the 1980s,” reports Chris Roush of Talking Biz News.
Cohen found out about the story after Goldstein had called him for a comment. He immediately contacted the CEO of Reuters’ Markets division and claimed that he was being persecuted by Reuters.
Reuters editors debated for three days before killing the story. A Reuters spokeswoman says the reason was purely for “journalistic reasons,” but Reuters reporters are not happy.
They had recently been encouraged to research and report deeper, analytical stories, only to have a huge one killed.
Steve Cohen is rumoured to be the next target of the SEC after the Galleon case wraps.