Steve Cohen is toast

Time to go short on shares in Steve's world.

Even though a steady stream of SAC insiders has been finding themselves in the headlines, Mr. Cohen himself has managed for the most part to avoid the splatter.

The arrest of Mike Steinberg this morning brings the long nose of the law closer to Cohen than it's ever been. What's amazing about the Cohen story is that after Madoff, everybody, from the doorman to the janitor to the guidance counselor at your kid's school,  knew that year after year of suspiciously robust returns could mean only one thing.

Monkey business.

Dirty deals.

Insider trading.

Don't know where the SEC types are finding the cahones after letting this stuff slide for thirty years, but it seems the game has changed.

And it's about time.

Cohen hedge funds pay 600 million fine for insider trading "but nobody did anything wrong!"

There are hedge funds in all sizes, but when the adoring press discuss Steve Cohen he is invariably the "hedge fund titan."

Cohen is somewhat less titanic today after agreeing to pay $616 million in fines over a couple of SEC insider trading investigations.

Some of his bigger investors have been pulling hundreds of millions out of Cohen's funds over the past few months as speculation increased that the SEC investigation wasn't going away.

Nor are the SEC done with Cohen, in spite of these record-setting fines. He may yet face criminal charges.

Slide over Bernie, Steve Cohen's gonna squeeze in there too...

No sign of panic yet as Feds sniff around Cohen's SAC Capital.

But does it not seem somewhat apocryphal to read about those consistent 30% returns?

After Bernie's fall from grace everybody and their uncle was claiming "oh ya, 15% return year after year; we all knew something was fishy!"

If 15 is fishy, what the hell is 30?

Better slide over in your cell there at Butner, Mr. Madoff. You'll be having company soon.

Steve and Bernie, together at last!