Battered Bear Tries to Act Bullish

Subprime woes reach executive suite after hedge funds implode

(NEWSER) - Bear Stearns has fired its No. 2 and once-likely successor as CEO in the wake of the collapse of two company hedge funds worth more than $1B, reports the Wall Street Journal. Warren Spector, the most high-profile casualty to date in the subprime-mortage crisis rocking Wall Street, is a mortgage and trading expert who oversaw the unit that housed the two failed funds. More»

Investors, homeowners, banks head to court, but obstacles lie ahead

(NEWSER) - The troubles plaguing Countrywide and Bear Stearns’ hedge funds will move from the boardroom to the courtroom. Homeowners and banks are suing mortgage lenders, shareholders are suing funds, the SEC is investigating executives, and Congress may conduct hearings into credit agencies' practices. The current mess ensnares “an incredible range of parties,” one legal expert tells the Washington Post. More»

Even borrowers with excellent credit are now facing higher rates

(NEWSER) - Mortgage tremors have rippled so far across the home loan market that even buyers of high-priced homes with good credit records are now being squeezed, the Wall Street Journal reports. Rates have surged on loans above $417,000 for prime borrowers—to 7.34% for a 30-year fixed-rate mortgage, up from 6.5% in May. More»

(NEWSER) - Wall Street is dizzy after mixed signals threw traders into buy mode despite an abundance of bearish indicators today, making for one of the most volatile days in weeks. The Dow finished up 150.38 points at 13362.37, even after Asian markets plummeted across the board last night, a buyout for Bauch & Lomb failed, and a troubled Bear Stearns put another subprime-backed hedge fund on hold. More»

Bear Sterns execs accused of fraud go free

(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 Street executives related to the meltdown and doesn't bode well for future prosecutions. More»