Dec 12 SAC Capital Advisors LP is considering a
revamp of its business, including scaling back ties with some
banks and renaming itself, as it attempts to emerge from an
insider-trading scandal and forge a new identity, the Wall
Street Journal reported on Thursday.
The hedge fund is considering curtailing some of its
relationships with investment banks that help finance and manage
its trades, including a bank that withdrew a $100 million line
of credit after the firm was indicted, the Journal said, citing
people familiar with the matter.
An SAC spokesman declined to comment on the Journal report.
SAC became the largest Wall Street firm in years to agree to
plead guilty to criminal charges of insider trading, and pay
$1.2 billion in fines. The total settlement amounted to about
SAC, which took the initials of its billionaire
founder, Steven A. Cohen, has also had discussions about a
change in its name, the paper said. ()
Cohen, who was not personally charged with any crime, is
expected to continue managing his own money through a lightly
regulated family office once the hedge fund's plea deal is
approved by the courts.
Even after the restructuring, SAC will have between $7
billion and $9 billion in assets belonging to Cohen and
employees, the journal said.