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Playing Well With Others
Did Lenders To The Troubled Bear Stearns Fund Pull Back From The Brink, Or Just Refuse To See They've Long Since Gone Over It.
Yesterday's showdown over the fate of two big Bear Stearns hedge funds "marks an important test of the financial markets' resiliency," according to this morning's Wall Street Journal. So the natural question is: how did the financial markets score? What does the report card look like on the day after several investment banks flinched from pushing these two funds over the edge?
If "Plays Well With Others" was one of the subjects being tested, several of the investment banks who were exposed to the losses at the hedge funds scored very well. JP Morgan Chase, Goldman Sachs and Bank of America all reached negotiated deals with Bear Stearns to limit their risk. Although the details are sketchy, it seems that these deals involve Bear Stearns buying back collateral assets the banks had seized, forestalling a need to auction them off.
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If "Plays Well With Others" was one of the subjects being tested, several of the investment banks who were exposed to the losses at the hedge funds scored very well. JP Morgan Chase, Goldman Sachs and Bank of America all reached negotiated deals with Bear Stearns to limit their risk. Although the details are sketchy, it seems that these deals involve Bear Stearns buying back collateral assets the banks had seized, forestalling a need to auction them off.
Read more
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