Sorry I had to post this one TOKYO, Aug 2 (Reuters) - A top executive of Bear Stearns Cos., which has been hit by the collapse of two of its hedge funds and forced to halt redemptions at a third, shrugged off concerns about a global credit crunch on Thursday and said the recent market decline was healthy. The bank has not lost clients even after its widely publicised losses and is now focused on catching up with bigger rivals such as Goldman Sachs Group Inc. in markets outside of the United States, said Michel Peretie, chief executive of Bear Stearns International Ltd. "I think it's a healthy correction. We've seen excess in terms of leverage and there was not enough premium for the risk structures," Peretie, who heads the investment bank's Asian and European operations, told a small group of reporters. The two highly leveraged hedge funds crumbled last month after betting the wrong way on securities backed by U.S. subprime mortgage loans. The third fund halted redemptions this week after jittery investors wanted to pull out their money. "I think it's good that we are going back to more normal financial terms and normal spreads on the credit sides," he said. "Personally, I'm cautiously optimistic. I think the market will come back up in the third quarter." Peretie, on a regular visit to the bank's Tokyo office, said there was no sense of crisis at Bear Stearns and emphasised the bank was on sound footing. "The clients are showing a lot of support to us," he said. "If there is any slowdown (in business) it is because we are in summer." Late summer is typically a slow period for financial markets as many participants are on holiday. More: http://www.reuters.com/article/marketsNews/idUKT33500020070802?rpc=44
Well it is healthy but that does not mean that Bear is not in trouble. The slowdown is because of the summer? What a big liar that man is.
Its pretty obvious isnt it? Why would a financial leader speak badly about the environment and shake investors confidence?
Clients lining us to show "support," eh? See www.elitetrader.com/vb/showthread.php?postid=1553527#post1553527 Maybe BS will try to peddle a reverse mortgage to the retiree in the article. He may need it. Let's listen in: BS: "Sure sorry 'about that 500k Mr. Jones." Jones: "My wife needs that operation, and how I am going to eat?" BS: "Equity, Mr. Jones, or, as we experts call it, a reverse mortgage."
[Sales pitch, continued, of Bear Stearnsâ reverse mortgage division, which is newly minted to meet the changing needs of BSâ clients:] BS: âSure, I understand about your wifeâs operation, but let me tell you, those Ph.Ds recently transferred over to us from our mortage-backed division say that longevity is way overvalued. Trust me: if anybody knows over value, those guys do.â Mr. Jones: âAre you saying I should just let her die.â BS: âOf course not. Iâm saying that with a little boost from senile dementia, you wonât care and, most importantly, you wonât even remember that 500k nest egg we blew up. So, whadda say, a reverse mortgage? Remember, with home equity, itâs use it or lose it for old people like you.â
BS: âSure, I understand about your wifeâs operation, but let me tell you, those Ph.Ds recently transferred over to us from our mortage-backed division say that longevity is way overvalued. Trust me: if anybody knows over value, those guys do.â Mr. Jones: âAre you saying I should just let her die.â BS: âOf course not. Iâm saying that with a little boost from senile dementia, you wonât care and, most importantly, you wonât even remember that 500k nest egg we blew up. So, whadda say, a reverse mortgage? Remember, with home equity, itâs use it or lose it for old people like you.â Ooops, Mr. Jones, our retiree, apparently has not forgotten that 500k Bear Stearns blew up. That's what the lawyers are saying: biz.yahoo.com/bw/070816/20070816005521.html?.v=1 Next up: defense atty fees make that 2 & 20 look like pocket change.