Bear Stearns Funds Collapse | RNO Message Board Posts

Mining and Forestry

RNO   /  Message Board  /  Read Message

 

 






Keyword
Subject
Between
and
Rec'd By
Authored By
Minimum Recs
  
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  11921 of 65647  at  6/20/2007 12:24:53 AM  by

lzc


Bear Stearns Funds Collapse

Wednesday should be fun.

Two Big Funds At Bear Stearns Face Shutdown As Rescue Plan Falters Amid Subprime Woes, Merrill Asserts Claims
By KATE KELLY, SERENA NG and DAVID REILLY
June 20, 2007; Page A1

Two big hedge funds at Bear Stearns Cos. were close to being shut down last night as a rescue plan developed over several days fell apart in a drama that could have wide-ranging consequences for Wall Street and investors.

Merrill Lynch & Co., one of the hedge funds' lenders, said it would move to seize collateral -- much of it mortgage-backed debt -- from the two funds and sell it, according to documents reviewed by The Wall Street Journal. At the same time, the funds' managers worked with a handful of other key lenders, including Goldman Sachs Group Inc. and Bank of America Corp., to pay off the funds' $9 billion in loans, according to a person familiar with the matter.

As of a few weeks ago, the two Bear Stearns hedge funds held more than $20 billion of investments, mostly in complex securities made up of bonds backed by subprime mortgages -- the relatively risky home loans made to borrowers with troubled credit histories.

[snip]

http://online.wsj.com/article/SB118230204193441422.html?mod=home_whats_news_us


     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 2     Views: 163
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board






Financial Market Data provided by
.


Loading...