Bear Stearns To Rescue Hedge Fund With $1.6B
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Bear Stearns Cos. said it will put up $1.6 billion to rescue the money-losing Bear Stearns High-Grade Structured Credit Strategies Fund, half as much as it offered last week, after raising additional money through asset sales. Bear Stearns said June 22 it would assume as much as $3.2 billion of loans to prevent lenders from liquidating assets. The reduction means Bear Stearns won’t have to tie up as much capital to salvage the fund from bad bets on subprime mortgage bonds and collateralized debt obligations.
