Reuters Will Kill a Story If a Hedge Fund Manager Asks NicelyS

According to Talking Biz News, editors at Reuters killed an investigation into embattled hedge fund manager Steven Cohen after Cohen called its CEO to complain.

Reporter Matthew Goldstein had been looking into allegations, raised most recently in a lawsuit filed by Cohen's ex-wife, that Cohen engaged in insider trading in the 1980s. According to Talking Biz News' Chris Roush, Cohen got the story killed last week by calling Devin Wenig, the CEO of Thomson Reuters Market Division, which oversees the firm's journalism arm, to complain.

Cohen's ex-wife accused him in a lawsuit last week of profiting from insider information about GE's purchase of RCA in 1986, and Goldstein reported earlier this month that B.J. Kang, the lead FBI agent on the Galleon case, looked into Cohen's firm SAC Capital Advisors two years ago. Given the PR Cohen has been facing of late, Goldstein's story must really have been a standout to merit an effort to quash it through corporate channels. A Reuters spokeswoman told Roush that all the company's decisions are made "purely on journalistic grounds"; Goldstein told Gawker, "As you can imagine I can't comment on this."

UPDATE: There's evidence that Goldstein's reporting—and that of his partner on the SAC Capital Advisers beat, Svea Herbst-Bayliss—has attracted intense interest at the highest levels of Reuters. The company helpfully includes the names of each story's editors in its bylines, and Goldstein and Herbst-Bayliss' story on Cohen's ex-wife's allegations bears the fingerprints of the company's top management, including Global News Editor Jack Reerink and Americas News Editor Martin Howell. Their involvement in a relatively routine story about public allegations—the Wall Street Journal and other papers were all over it, too, and the story was based on court filings—suggest that the subject of Steven Cohen is indeed being handled with care at Reuters.