Bear Stearns’ coffee spoons laid out
Bear Stearns on Tuesday told investors in two stricken hedge funds managed by the bank that one fund had lost all its value and the other had about nine cents remaining for every dollar invested following bad bets on the US subprime mortgage market.
The two funds at one point had more than $20bn in investments, much of it using borrowed money.
The funny thing about this, to me, is a neat story I did spot this morning, in the Financial Times, insisting that the market was fine (no, it is not some financial-analyst cousin of The Lunatic Bill Kristol).
Bear Stearns the company did not suffer too heavily for the worse-than-expected results:
If you look at the 3-month trend, you’ll see it’s mostly the same – small rallies interrupting a continued slide.
I loved also the news of whose head came off:
Warren Spector, co- president, is widely viewed as a possible successor to James Cayne, who is 73. However, Mr Spector was ultimately responsible for the subprime funds.
I like the idea that, in this game of pass-the-Frankendebt, one guy can be called ‘ultimately responsible’. “First publicy burned”, sure.