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The string of client defections has severely damaged Andersen's revenue-generating ability.
Since then Andersen's ability to pay has been further undermined by client defections.
Important parts of its franchise are either suffering client defections (prime brokerage) or disappearing altogether (structured-credit products).
The continuing pressures come at a crucial time for Andersen as it tries to head off client defections.
If Andersen's efforts to find a merger partner fail, and that seems likely, more client defections are expected.
These account for more than half of the firm's $9 billion in annual revenues and have not yet been hit by client defections.
SAC is largely insulated from the potentially devastating effects that client defections can have on a hedge fund in part because of Mr. Cohen's extraordinary wealth.
For the most part, the foreign practices have not suffered the wide-scale client defections that have hit the United States firm.
The change was, in part, spurred by a desire to halt client defections and an exodus of Bear executives to rival firms.
The change is one of several being made as Cordiant reorganizes after suffering financial losses along with client defections at its biggest unit, Bates Worldwide.
Cordiant has suffered in recent years after a binge of high-priced acquisitions in the late 1990's and client defections left it with high debt and shrinking profits.
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