SAC Capital Advisors has told its employees that it will survive a wave of investor withdrawals amid the government’s insider trading investigation, DealBook’s Peter Lattman reports. Investors in the hedge fund, which is owned by Steven A. Cohen, have asked to withdraw a significant amount of money by a quarterly deadline on Monday, according to an internal e-mail sent by SAC’s president, Thomas J. Conheeney. The amount, though not disclosed, was said to be more than the $1.7 billion taken out earlier this year, meaning SAC would be left with a fraction of the $6 billion in outside capital with which it began the year, Mr. Lattman reports.
SAC is putting up a confident front, reiterating in the e-mail that there were no plans to significantly reduce the staff of roughly 1,000. Mr. Cohen’s fortune accounts for roughly $8 billion of the fund’s $15 billion in assets. “Yet the exodus of investors is a humbling blow to Mr. Cohen and his firm,†Mr. Lattman writes. “Until recently, elite investors had clamored to get into the top-performing hedge fund, despite fees that are among the highest in the industry. Now, the investor departures underscore the reputational damage caused by the spate of criminal cases involving former SAC employees â€" as well as the authorities’ push to build a criminal case against the fund, and possibly Mr. Cohen.â€
LOSS FOR JPMORGAN IN ALABAMA DEBT DEAL Â |Â JPMorgan Chase will face a big loss under the deal to settle the bankruptcy of Jefferson County, Ala., Mary Williams Walsh reports in DealBook. The bank, which many in the county hold responsible for the financial collapse in the first place, will have given up nearly $1.6 billion when the dust finally settles. The deal calls for the bank to forfeit $842 million on the $1.22 billion of sewer debt that it holds, on top of $647 million it forgave in termination fees on derivatives contracts with the county and a $75 million penalty it paid to settle a complaint by the Securities and Exchange Commission, Ms. Walsh writes. The county will drop a lawsuit against JPMorgan if the deal goes through.
But to some county residents, the proposed concessions are not enough. “The deal will force Jefferson County to return to the scene of the crime that crippled it: the bond market,†John Archibald, a columnist for The Birmingham News, wrote in an article published online Wednesday. “Lucifer spells his name JPMorgan,†he added.
THAIN’S BIG REGRET  | “I wouldn’t have taken the Merrill job,†John A. Thain, former chief executive of Merrill Lynch, tells The Wall Street Journal in a rare interview about the events surrounding the financial crisis. “I regret having to sell Merrill Lynch to Bank of America.â€
Mr. Thain, now the head of the CIT Group, is overseeing a turnaround at the lender that may involve opening its first bank branch, in Salt Lake City. His current office, half a block from Bank of America’s New York headquarters, is nothing special, Mr. Thain suggested to the newspaper. That may be a contrast with Merrill, where one particular item, a $35,000 commode, became a symbol of Wall Street excess.
ON THE AGENDA  | The chief executive of Goldman Sachs, Lloyd C. Blankfein, gives a commencement address to LaGuardia Community College. The Bank of England and European Central Bank release decisions on interest rates. The analyst Meredith Whitney, who has a new book out called “Fate of the States: The New Geography of American Prosperity,†is on Bloomberg TV at 7 a.m. Gary Gensler of the Commodity Futures Trading Commission is on Bloomberg TV at 11:45 a.m.
COUNTRIES SEEK SILICON VALLEY ENTREPRENEURS  | In a sassy billboard over a highway that runs through the heart of the technology industry, Canada makes an invitation to foreigners having trouble getting temporary visas. “H-1b problems?†it reads. “Pivot to Canada,†where the country offers a new so-called start-up visa with the prospect of permanent residency. Somini Sengupta writes in The New York Times: “Canada is not alone in reaching out to foreign entrepreneurs. In a bid to create their own versions of Silicon Valley, Britain and Australia have dangled start-up visas like this too. Chile is even offering seed money to lure foreigners to come to Santiago and get their start-ups off the ground. But the seductions of this Silicon Valley are hard to resist for the men and women who dream of building the next Google (or atleast being the next Google acquisition). This is where they want to be.â€
PepsiCo Said to Be in Talks to Buy SodaStream  | PepsiCo is in talks to buy SodaStream International, an Israeli company that sells machines for making soda, for around $2 billion, a report in the Calcalist newspaper said, according to Reuters. REUTERS
Another Senator Urges Caution on Smithfield’s Sale to Chinese Company  | Senator Debbie Stabenow, the Democratic chairwoman of the Senate Agriculture Committee, said on Wednesday that she still had concerns about any potential effect that the deal may have on food safety in the United States. DealBook »
Dell’s Board Puts Investors in a Bind  | Emphasizing how poorly the company is doing runs the risk of everyone believing it, Robert Cyran of Reuters Breakingviews writes. REUTERS BREAKINGVIEWS
Echoes of ‘Mad Men’ in Agency Merger  | Two independent advertising agencies are merging in an effort to compete for larger accounts, a real-life story that mirrors a plotline in the AMC series “Mad Men,†Stuart Elliott writes in The New York Times. NEW YORK TIMES
Dimon Predicts Greater Volatility as Rates Rise  | “We should all hope for a normalization of interest rates â€" that’s a good thing,†Jamie Dimon, the chief executive of JPMorgan Chase, said in a panel discussion in China. “As we go back to normal, its going to be scary, and its going to be kind of volatile.†BLOOMBERG NEWS
Financial Fears Gain Credence in Turkey  | “It is not often that the rock-throwing street protester and the seasoned bond investor see eye to eye,†Landon Thomas Jr. writes in The New York Times. “This curious happenstance â€" where both fear that the profusion of glass towers and shopping malls now overwhelming the classic Istanbul skyline is not only ugly but unsustainable â€" underlies the convulsive uprising in Taksim Square.†NEW YORK TIMES
Credit Suisse Expected to Have Leading Role in Alibaba I.P.O.  | Reuters reports: “Credit Suisse is expected to take a leading role in the anticipated I.P.O. of China’s Alibaba Group, according to people familiar with the matter, a coveted position that would yield massive fees for the bank as rivals jostle for a role in the offer.†REUTERS
Bank of America Hires Senior Fixed-Income Traders  | The moves seem to defy a trend in the industry, writes eFinancialCareers. EFINANCIALCAREERS
Bankers Say Their Co-Workers Are Overpaid  | A survey found that most bank employees in Britain thought that some people at their companies were being paid too much, The Wall Street Journal reports. WALL STREET JOURNAL
In London, Investment Bank Associates Are in Demand  | According to headhunters in London, big investment banks are looking to hire associates, who typically have three to six years of experience, The Wall Street Journal reports. WALL STREET JOURNAL
CVC Announces I.P.O. of Belgian Postal Firm  | The private equity firm CVC Capital Partners is aiming for a valuation of up to 3 billion euros ($3.9 billion) for bpost, a Belgian postal operator, according to a newspaper advertisement, Reuters reports. REUTERS
Legg Mason May Expand Into Private Equity  |Â
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Procter & Gamble Reorganizes Business Into 4 Units  | Procter & Gamble, one of the biggest holdings of the hedge fund manager William A. Ackman, made the first big change to its business since Alan G. Lafley returned as chief executive nearly two weeks ago, The Associated Press reports. ASSOCIATED PRESS
Container Store Said to Prepare for an I.P.O.  | The Container Store has begun to hire advisers to prepare for a potential initial public offering, a person briefed on the matter said on Wednesday, nearly five years after selling itself to the private equity firm Leonard Green & Partners. DealBook »
Huishang Bank Said to Plan $1 Billion I.P.O. in Hong Kong  |Â
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Treasury Plans to Sell 30 Million G.M. Shares  | The offering will be in conjunction with General Motors’ inclusion in the Standard & Poor’s 500-stock index this week. DealBook »
MakerBot, a 3-D Printing Firm, Said to Be in Takeover Talks  | MakerBot Industries, a start-up that makes 3-D printers, “was recently gauging its options for raising a new round of venture capital at a valuation of $300 million when the discussions led to interest from possible acquirers,†The Wall Street Journal reports, citing unidentified people familiar with the matter. WALL STREET JOURNAL
I.M.F. Concedes Missteps in Greek Bailout  | In an internal report released on Wednesday, the International Monetary Fund sharply criticizes its first bailout program for Greece, saying it bent or broke three out of four of its own rules with the lending program, The New York Times reports. NEW YORK TIMES
Europe Considers Moving Libor Oversight Away From Britain  | Bloomberg News reports: “The European Union is considering whether to hand oversight of the scandal-ridden London interbank offered rate to the European Securities and Markets Authority.†BLOOMBERG NEWS
Less Enthusiasm for Abe’s New Steps in Japan  | The New York Times reports: “Prime Minister Shinzo Abe on Wednesday rolled out the next phase of his aggressive strategy to kick-start Japan’s economy, with plans to encourage foreign investment, nurture innovation and improve regulation. But almost immediately, a big question surfaced: Will they go far enough?†NEW YORK TIMES
Trial Date Set for Former SAC Trader in Insider Case  | Federal prosecutors have accused Mathew Martoma of making more than $276 million in a combination of illegal profits and avoided losses trading in the shares of the pharmaceutical companies Elan and Wyeth. DealBook »
S.E.C. Proposes Changes in Money Funds  | The Securities and Exchange Commission voted unanimously to move ahead with changes governing the money market fund industry, but the proposal still must go through a comment period and final vote. DealBook »
