The Fallout from SAC Capital Indictment

SAC Capital, the hedge fund controlled by billionaire Steven A. Cohen, was indicted Thursday for securities fraud and wire fraud. The blow from the feds was the latest in a string of legal assaults the hedge fund has faced; in March, the firm paid $616 million to settle two insider trading suits brought by the SEC, a record insider-trading fine. But the government isn’t through with SAC yet. It is pursuing forfeiture of about $10 billion, The Wall Street Journal reported. Much of the focus thus far has been on direct effects on SAC and its investors. But when an institution with the size, wealth, and footprint of SAC gets into trouble, it’s likely to have an economic and financial impact beyond the trading floor.