Thursday, November 01, 2007

Its hard to lose 2 Billion and not get sued...

Bear Stearns may face forensic review of its "High-Grade Enhanced Leverage funds". They will have even more problems if it is found that their proprietary desk was dumping unprofitable positions on the two funds. This is going from bad to worst for Bear, and it seems the media wants to have all the chiefs of the investment banks involved in the credit crisis to fall on their swords.

INVESTMENT BANKING Investors want Bear funds probe

(From The Daily Telegraph (LONDON), provided by LexisNexis)
Publication: The Daily Telegraph (LONDON)

James Quinn Wall Street Correspondent

BEAR Stearns chairman and chief executive Jimmy Cayne is to come under yet more pressure after investors in the bank's two collapsed hedge funds joined together to lobby for forensic probes in to their demise.

Institutional and private investors accounting for more than 25pc of holdings in each of the two funds have combined in order to attempt to vote off Bear Stearns as controlling party from each of the two High-Grade Enhanced Leverage funds

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