Investment Firm To Quit Business

A trading scandal that resulted in $138 million in investment losses for more than 700 colleges and universities has claimed another victim: The investment firm that lost the money.

First Capital Strategists, a 15-year-old money-management firm based in York, Pa., is closing after its major clients bolted following negative publicity over the big loss incurred by a rogue trader at the firm.

The impending shutdown comes as schools rush to hammer out an agreement with the firm and its four partners over at least partial restitution.