Is Goldman Sachs Supporting an End to Too Big to Jail?

Updated from 5:26 p.m. ET to reflect new SAC Capital statement.

(TheStreet) -- Wall Street investment banks will continue to do business with Steven A. Cohen's hedge fund SAC Capital Advisors, even after the firm agreed on Monday to plead guilty to federal charges that it violated insider trading laws.

Broker-dealers that are among SAC Capital's biggest counterparties -- including Goldman Sachs (GS) and JPMorgan (JPM) -- will continue to trade with the embattled fund, according to sources familiar with the situation. A continued trading relationship is consistent with the nature of SAC's guilty pleas and settlement on Monday, those sources said.

Goldman Sachs, JPMorgan, Morgan Stanley, Bank of America and Barclays declined to comment.

At issue could be the protection of outside SAC Capital investor funds and market stability. In unveiling SAC's guilty plea and a record $1.8 billion in total forfeitures and fines, U.S. Attorney Preet Bharara made a point to state that the hedge fund's investors will bear none of the settlement's costs.  And the fines also aren't tax deductible.

Top executives at Goldman Sachs have already said in media appearances they have been supportive of SAC Capital even after the fund was criminally indicted for one count of wire fraud and four counts of securities fraud, in an insider trading conspiracy prosecutors alleged lasted over a decade and led to hundreds of millions of dollars in illegal profits and avoided losses.

"They have been indicted, they haven't been convicted," Lloyd Blankfein, Goldman Sach's CEO said in an interview with The New York Times in September. 

But now SAC Capital has admitted criminal wrongdoing.

SAC Capital will plead guilty to every charge brought against the firm and its affiliates in July, however, individuals at the company will not receive immunity from future prosecutions, according to a letter unsealed in a U.S. District Court in New York.

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