Shaw & Co. to keep a higher fraction of profits than hedge fund investors normally allow. In effect, Bank of America provided an infusion of $1.4 billion to D. E. Shaw, hoping to benefit from the latter's investment expertise. One year later, Russia defaulted on its debt, resulting in large losses for D. E. Shaw's fixed-income trading portfolio. As a result, Bank of America lost $570 million due to its investment in D. E. Shaw, and paid out an additional $490 million to settle associated shareholder lawsuits. Following the collapse of this alliance, D. E. Shaw sold off business and laid off employees, reducing its core workforce from 540 employees in 1999 to 180. The company's capital shrank from $1.7 billion to $460 million. 2002 - Management transfer David E. Shaw directed the company from 1988 to 2001. In 2002, he removed himself from day-to-day involvement in the company and transitioned leadership to a team of six of the firm's senior managing directors. The company's management structure of the same six-member Executive Committee remained intact through 2010. In 2010, the company had more than 1,300 employees.Currently, the Executive Committee, comprises Anne Dinning, Max Stone, Julius Gaudio, Eric Wepsic, Eddie Fishman, and Alexis Halaby. Today, the firm has more than 1,700 people across the globe and an institutional-grade infrastructure. 2007 - Financial crisis Multi-strategy fund At the beginning of the financial crisis in August 2007, D. E. Shaw's multi-strategy fund had assets of $20 billion. A third of the fund's exposure was to the equity markets and equity-linked quantitative strategies. As a result, the fund lost five percent of its assets and had its worst-performing month to that point in time. By September 2008, the company's capital was leveraged at 4x. In the final months of 2008, subsequent gains on its then $15 billion multi-strategy funds had disappeared. Credit strategies Twenty percent of the company's assets under management were in its credit strategies and were the hardest hit during the financial crisis. Redemptions To avoid loss of portfolio value and asset fire sales, D. E. Shaw displeased some clients by preventing the withdrawal of funds during the financial crisis. Those gates created time delays when clients requested that funds be returned to them. By 2009, D. E. Shaw had returned about $2 billion at clients' requests. One year later, the Financial Times reported that investors estimated that the company had honored