Barclays sues Bear Stearns over hedge funds
|
|
|
| Posted
:
Wed, 19 Dec 2007 21:53:00 GMT |
| By
:
Reuters |
| Category
:
US (Business) |
| News Alerts by
Email ( click
here ) |
|
US Business News |
Home
|
|
|
|
NEW YORK (Reuters) - Barclays Bank Plc on Wednesday accused Bear Stearns Co Inc of using two hedge funds that collapsed last summer as places to unload troubled assets.The London-based bank's allegations appear in a lawsuit filed in U.S. Court for the Southern District of New York in Manhattan.Bear Stearns was not immediately available for comment.Barclays described the collapse of two Bear Stearns-run hedge funds as one of the most shocking in the last decade. The bank said it was the sole shareholder to a Bear Stearns enhanced leverage fund with exposure to risky subprime mortgages. That fund and another run by Bear Stearns had more than $20 billion in assets before their collapse."Bear Stearns ... used the enhanced fund as a place to unload excessively risky or troubled assets that could not be sold to other investors at the prices paid by the enhanced fund," Barclays said in its complaint.At the end of May, for example, Bear Stearns Asset Management had the enhanced fund buy about $500 million of the riskiest classes of securities in a deal that it managed, Barclays' complaint says."BSAM did so despite the fact that investment restrictions it had promised Barclays did not permit those securities to be held in the fund," the complaint said.(Reporting by Tim McLaughlin; Editing by Jeffrey Benkoe, Leslie Gevirtz)
(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
GM: Opel restructuring plan by mid-December; cuts up to 25 per cent
Washington - US carmaker General Motors will present a new restructuring plan for its European operations by mid-December, Nick Reilly, the new head of GM Europe, wrote on his new blog Friday. While the details were still being hashed out, Reilly war...
US stock sell-off on fears of weak recovery
New York - US stocks followed global markets in a broad decline amid investor fears over the world's uneasy recovery from recession. Major US stock indices fell about 1 per cent on average, following hefty declines in the DJ Euro Stoxx 50 and Japan's...
US leading economic indicator gains 0.3 per cent
Washington - A key measure of US economic performance gained in October, according to a private research group Thursday, signalling that a broader recovery may be taking hold. The New York-based Conference Board's Leading Economic Index added 0.3 per...
US stocks fall slightly on technology earnings
New York - US stocks posted modest losses Wednesday on poor profit forecasts from technology firms and a surprising dip in home construction. Earnings from Salesforce.com and Autodesk were worse than expected. Other technology shares losing ground in...
Obama acknowledges danger of double-dip recession if deficit grows
Washington - President Barack Obama said Wednesday he was mindful of the dangers brought on by the country's skyrocketing budget deficit, warning that too much spending could lead the United States into another recession. Obama, who has taken heavy c...
US inflation 0.3 per cent in October - Summary
Washington - The US inflation rate was 0.3 per cent in October compared to the previous month, according to the Labour Department Wednesday. The higher-than-expected increase was fuelled by gains in car sales and energy prices. Consumer prices rose 0...
|
|
|
|
|
|
|
|
