Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 22, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

Subprime Woes Rock Another Bear Stearns Fund

Withdrawals blocked, rumors swirl as market slips further

Share

(Newser) – Bear Stearns has blocked withdrawals from a mortgage investment fund amid Wall Street jitters over the crisis in high-risk subprime mortgages, the Wall Street Journal reports. Two Bear Stearns hedge funds heavily invested in subprime mortgages collapsed in June, and now another fund, which has only a tiny fraction of its assets in subprimes, is taking a beating.

The Asset-Backed Securities Fund is not threatened, insisted a Bear Stearns spokesman. "The fund is well positioned to wait out the market uncertainty,"  he said. The suspension of withdrawals came as a warning from American Home Mortgage that pressure to repay creditors may force liquidation ignited a sell-off. Its shares plummeted 89%.

Bear Stearns Fined $250 Million Over Questionable Trades
Bear Stearns Fined $250 Million Over Questionable Trades   (Getty Images)
The logo for Bear Stearns is shown at its corporate headquarters in New York, Wednesday, July 18, 2007. Stocks retreated Wednesday after Bear Stearns Cos. told investors there was little value left in two failed hedge funds, renewing concerns that soured subprime loans will wreak financial havoc on Wall Street....
The logo for Bear Stearns is shown at its corporate headquarters in New York, Wednesday, July 18, 2007. Stocks retreated Wednesday after Bear Stearns Cos. told investors there was little value left in...   (Associated Press)
The headquarters for securities firm Bear Stearns is shown March 16, 2006 in a New York file photo. Bear Stearns Cos., the fifth-biggest U.S. investment bank, said Thursday, June 14, 2007 fiscal second-quarter profit sank as a downturn in the U.S. mortgage market slammed the company's business of...
The headquarters for securities firm Bear Stearns is shown March 16, 2006 in a New York file photo. Bear Stearns Cos., the fifth-biggest U.S. investment bank, said Thursday, June 14, 2007 fiscal second-quarter...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.20.09
The Health-Care Wars Have Just Begun
11.19.09
Sarah Palin Deserves Some More Attention
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

74 Stories

Jury Clears Fund Managers
in Bellwether Case

Bear Sterns execs accused of fraud go free

Nov 10, 09 5:29 PM CST
(AP) - Two Bear Stearns executives who ran hedge funds that collapsed after betting heavily on the shaky subprime mortgage market were acquitted today of lying to investors—a defeat in the government's bid to punish fraud exposed by the financial crisis. The closely watched case was the first one against Wall... More »

MORE ABOUT:
Wall Street • Bear Stearns • hedge fund • Ralph Cioffi • hedge funds • Matthew Tannin

First Major Financial Crisis Trial Begins

Bear Stearns execs accused of lying as funds imploded

Oct 15, 09 2:43 AM CDT
(Newser) - The first major criminal trial against top Wall Street execs involved in the financial crisis kicked off in New York yesterday. Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin are accused of misleading investors in a desperate attempt to stop them from abandoning the funds, even as they... More »

MORE ABOUT:
subprime mortgages • Bear Stearns • Ralph Cioffi • securities fraud • financial crisis • Matthew Tannin

Watchdog: Feds Need to Expand Foreclosure Plan

$50B plan proving ineffective as more mortgage holders lose their jobs

Oct 10, 09 5:00 AM CDT
(Newser) - The Treasury's $50 billion loan-modification program is in danger of being swamped as the foreclosure crisis accelerates, the Congressional Oversight Panel said in a report yesterday. The Home Affordable Modification Program has met its target of 500,000 trial mortgage modifications started by November 1, but the watchdog warned that... More »

MORE ABOUT:
housing market • subprime mortgages • foreclosure • mortgage • subprime crisis • negative equity • Obama administration • TARP • mortgage modification • underwater mortgage • Home Affordable Modification Program

74 Stories


Mortgage Crisis

Mortgage meltdown will cost banks billions
MarketWatch

More on Bear Stearns in the context of the broader markets
New York Times


US  •  Business 
TwitterFollow @NewserUS on Twitter

 
subprime mortgages • Bear Stearns • mortgage • hedge fund • investment • American Home Mortgage

from our news partners