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crash2006

Bear Stearns Faces Losses In Third Fund

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It emerged on Tuesday night that Bear Stearns, which has seen two of its credit hedge funds implode in recent weeks due to their exposure to the subprime market, has suspended investor withdrawals from a third hedge fund.

investors must really be peed off with bear stearns, i guess investors in the future will shy away from any investment with these guys.

http://www.ft.com/cms/s/f36ab720-3fbb-11dc...00779fd2ac.html

The problems at the Bear Stearns Asset-Backed Securities fund, which has about $850m of prime and Alt-A securities, was first reported by the Wall Street Journal. Bear Stearns said the fund had no leverage and that it did not believe it was "prudent" to sell assets to meet redemptions in the current market environment.
Mortgage Guaranty Investment Corp and Radian Group, two mortgage insurers, slid after they said their combined investment of more than $1bn in a subprime mortgage company may be worthless.

MGIC and Radian said they could be forced to write down their entire investments, valued at $516m and $518m, respectively, in Credit-Based Asset Servicing and Securitization (C-Bass), an issuer, servicer and investor in credit sensitive mortgage assets. C-Bass said the state of credit markets meant it had been subject to an "unprecedented amount of margin calls from our lenders".

hum put more money into it or sell assets i wonder what they would do?

Hedge funds also suffered. Braddock Financial of the US said it was closing its $300m Galena fund after subprime losses. Another fund said to have suffered is Highland Capital's special opportunities fund, which was down 17.5 per cent in June.

Australia's Macquarie Bank said investors in one of its mutual funds could lose up to 25 per cent of their money. Separately, Axa insurance group has also warned that two of its funds have been badly dented.

seems like more fund might get a bad shock next week if they have been exposed to the above.

American Home Mortgage Investment, a leading lender, plunged 90 per cent after it said it could no longer fund home loans.
Edited by crash2006

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investors must really be peed off with bear stearns, i guess investors in the future will shy away from any investment with these guys.

http://www.ft.com/cms/s/f36ab720-3fbb-11dc...00779fd2ac.html

hum put more money into it or sell assets i wonder what they would do?

seems like more fund might get a bad shock next week if they have been exposed to the above.

...why are Bear Stearns the only guys facing up ....are the rest shell-shocked....can't move.....?.... :o:o:o

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...why are Bear Stearns the only guys facing up ....are the rest shell-shocked....can't move.....?.... :o:o:o

I think Paul Tustain's piece on it explained that they entered the market late which is why they failed first. Others who entered earlier might follow a little later.

Edited by Goldfinger

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