SAC reconsiders business relationships and its name - WSJ
Dec 12 (Reuters) - 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 $1.8 billion.
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.