Bear Stearns new president: Scambling to restructure capital base

Discussion in 'Wall St. News' started by makloda, Aug 9, 2007.

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    BULLISH BEAR
    NEW PREZ NEEDS TO GROW CAPITAL BASE

    August 8, 2007 -- Bear Stearns might have a new president in Alan Schwartz who can rally the troops after a series of humiliating miscues and snafus, but the firm's hope of recovery rests on its vulnerable and modest capital base.

    A firm noted for its scrappy and entrepreneurial bent, Bear is going to need more than its wits to navigate the global credit meltdown that is striking at its core franchises: mortgage-backed securities and prime brokerage.

    According to Bear's most recent quarterly filing, with a capital base of $13.3 billion, Bear has to support over $423 billion in assets - $200 billion of which is securities and so-called mortgage- and asset- backed special purpose entities.

    More:


    http://www.nypost.com/seven/08082007/business/bullish_bear_business_roddy_boyd.htm
     
  2. Is that a tattoo on his right arm? :eek: