Bear Stearns Hedge Fund Liquidation
Bear Stearns has been in the financial news lately and not in the best of ways. It seems that two of Bear Stearns’s hedge funds ran into such heavy losses with the collapse of the until recently popular carry trade in Japanese Yen that they had to be liquidated. That’s quite a blow to one of Wall Streets most well known and up to now successful investment banks.
That may only be the tip of the financial iceberg with more bad news to come. It seems like Bear Stearns has stopped redemption’s in a third hedge fund. Now it has received a credit warning from Standard and Poors.
When one of the most profitable firms on Wall Street gets into such trouble due primarily to the meltdown in the sub prime lending housing market you had best watch out below.
Folks, the party is over. Probably for A GOOD LONG WHILE. Better take some action to defend your assets while you still have some.
The following is a PR statement about Bear Stearns posted by Bear Stearns on their website.
“Based on respect, integrity, meritocracy, innovation and a commitment to philanthropy, these guiding principles serve as blueprint for the way that we do business.
The Bear Stearns Companies Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., a leading global investment banking, securities trading and brokerage firm. Since 1923, we have helped corporations, institutions, governments and individuals reach their financial objectives. Clients have come to rely on the breadth of our expertise, our commitment to client service and our innovative approach to problem-solving. Talented professionals join Bear Stearns because of our unique corporate culture.
Based on respect, integrity, meritocracy, innovation and a commitment to philanthropy, these guiding principles serve as blueprint for the way that we do business.
To meet the increasingly complex needs of our clients and the demands of a rapidly changing marketplace, we have refocused our business, extended our geographic reach, and strengthened technological capabilities. As part of a new strategic plan, we have begun to look at our businesses in three core areas:
Capital Markets
Wealth Management
Global Clearing Services
This approach reinforces the increasingly interconnected nature of our various businesses. Thus private client services and asset management fall within the area of Wealth Management, while the Capital Markets area comprises all of our equity and fixed income sales, trading, research and investment banking businesses.
A priority has been the building of our European presence through the expansion of our London office. Bear Stearns currently employs approximately 15,000 people worldwide. Headquartered in New York City, the firm has offices in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San Francisco and San Juan. In addition to London, we maintain an international presence with offices in Beijing, Dublin, Hong Kong, Lugano, Milan, São Paulo, Shanghai, Singapore, and Tokyo.”
No doubt Bear Stearns is a blue chip company. That is what is so disturbing. If the best firms can get into so much trouble than more trouble is surely on the way.
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