Wednesday, Jul 18, 2007
Bear Stearns admits that its collapsed hedge funds are worthless
Bloomberg: Bear Stearns Tells Hedge Fund Investors There's `No Value Left'
"US bank Bear Stearns, which had to bail out two hedge funds in June with $1.6bn (£800m), now says the funds have "very little value".
The bleak message was made in a letter to investors in the funds, which had bet heavily on risky sub-prime loans. "
Well, looks like the auction that was pulled sent the right message - "prime" debt is worth 40% of book value, mezzanine and sub-prime are worthless.
How long before other funds have to start admitting this?
Posted by jeremiah @ 10:24 AM (295 views) Add Comment
2 Comments
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1. dbnazz1 said...
Well what a suprise. Thats what happens when you invest in junk.
2. dohousescrashinthewoods said...
Slaaam-dunk.
That's the end of our pensions then - diversification of risk means everything is affected, rather than just one or two hitting the deck.
The sh.. has been spread far and wide.