Elizabeth Warren calls SEC's approval of firm 'a mockery' and questions mission

Senator says decision to approve Stamford Harbor, which has ties
to hedge fund manager who pleaded guilty to insider trading,
potentially exploits investors

Jana Kasperkevic in New York
Thursday 21 April 2016 20.21 BST

Elizabeth Warren is not thrilled with the US Securities and Exchange Commission. On Thursday, the Massachusetts senator sent a missive to Mary Jo White, SEC chair, telling her she was making “a mockery” of the regulator’s core mission.

Warren, a scourge of Wall Street, is disappointed with the agency’s decision to approve Stamford Harbor Capital to act as investment adviser to outside clients. The reason? The firm is associated with Steven Cohen, former manager of SAC Capital Advisors, who pleaded guilty to insider trading in 2013 and paid a record $1.8bn fine.

Turns out, Cohen indirectly owns Stamford Harbor Capital. He is to receive as much as 50% of client profits, but won’t have any supervisory role, according to Bloomberg.

“Steve Cohen owns the entity, but consistent with his January agreement with the SEC he will not supervise the activities of anyone working on its behalf,” Jonathan Gasthalter, a Stamford Harbor spokesman, told Bloomberg.

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