Wednesday, 20 June 2007

WRAPUP 2-Merrill sells off assets from Bear hedge funds

(Reuters) - NEW YORK, June 20 - The fate of two troubled
hedge funds managed by Bear Stearns Cos. Inc. was left
in question after Merrill Lynch & Co. Inc. sold off
assets seized from the funds and three other banks closed out
their positions with them.




The Bear Stearns funds once had over $20 billion of assets,
but lost billions of dollars from bad bets on securities backed
by subprime mortgages. Bear Stearns earlier this week proposed
adding $1.5 billion of its capital to the funds as part of a
broader restructuring plan, but many Wall Street firms have
already headed for the exits.


Read more at Reuters.com Bonds News

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