Reserve’s Bent, Creator of Money-Market Funds, May Face SEC Legal Action Reserve Management Co. said the U.S. Securities and Exchange Commission may bring enforcement actions against the company and senior executives for violations of securities law.

Madoff Fund Operator Is Found Dead in New York; Had $1.4 Billion Invested A New York-based money manager who may have lost $1.4 billion of client funds invested with Bernard Madoff apparently killed himself in his Madison Avenue office, Police Commissioner Raymond Kelly said.

Cerberus Capital Limits Withdrawals From Partners Hedge Fund After Loss Cerberus Capital Management LLC, the $27 billion investment firm founded by billionaire Stephen Feinberg, limited investor withdrawals from one of its hedge funds after it lost 16 percent this year through November.

Blackstone to Combine GSO Debt Unit With Distressed Securities Hedge Fund Blackstone Group LP, the world’s largest private-equity firm, said it will combine its distressed securities hedge fund with its GSO unit, which also invests in troubled assets, and spin off a stock fund.

Madoff Victims May Have to Return as Much as 6 Years of Profits, Principal Like some of Bernard Madoff’s clients, a Florida restaurant owner was lucky enough to withdraw part of his investment before the money manager allegedly confessed to a $50 billion Ponzi scheme. Now he’s worried he might be asked to give it back.

TPG Said to Allow Investors to Cut Buyout Fund Commitments by Up to 10% TPG Inc., manager of a $20 billion buyout fund, will allow investors to trim their commitments as they seek to conserve cash amid losses across financial markets, according to a person familiar with the matter.

Tontine Capital to Start Equity Hedge Fund in 2009 After Losses This Year Jeffrey Gendell, whose investment firm Tontine Associates LLC is liquidating two hedge funds after losses of more than 60 percent this year, plans to start a new fund in February.

Goldman Sachs Bonds Entice Fidelity, Federated as Money Fund Yields Wither Money market funds run by Fidelity Investments and Federated Investors Inc. are looking to buy a new type of bank bond to bolster returns eroded by record-low Treasury yields.

Billionaire Feinberg Despised in Wisconsin Where Cerberus Lives Up to Name Just about everyone in Kimberly, Wisconsin, hates billionaire Stephen Feinberg.

Noel’s Fairfield Greenwich Sued Over $7.5 Billion Investment With Madoff Fairfield Greenwich Group, Walter Noel’s hedge-fund firm that had $7.5 billion invested with Bernard Madoff, was sued by investors for allegedly failing to protect their assets.