Fuck, they must really have had a bad reception to the announcement to sell them. Why would they be ready to sell and then make such a huge decision all of a sudden not to? This story is really fascinating. Merrill Sells Portion of $850 Million Bear Funds, Person Says By Jody Shenn June 21 (Bloomberg) -- Merrill Lynch & Co. backed away from its threat to dump about $850 million of securities it seized from Bear Stearns Cos. hedge funds, according to a person with knowledge of the firm's plans. Merrill Lynch sold a small portion of the collateralized debt obligations through an auction, said the person, who declined to be identified because the decision hasn't been announced. The firm plans to hold onto the remaining securities for now, the person said. The threat by Merrill Lynch to sell all the securities had sent shudders across Wall Street because it would have forced banks, brokerages and owners of similar securities to revalue their assets. Collateralized debt obligations, or CDOs exceed $1 trillion and comprise the fastest-growing part of the bond market. Merrill Lynch spokeswoman Jessica Oppenheim declined to comment. To contact the reporter on this story: Mark Pittman in New York at mpittman@bloomberg.net . Last Updated: June 21, 2007 12:10 EDT