Conditions are worse than in 1998?

Discussion in 'Wall St. News' started by asap, Aug 28, 2007.

  1. asap


    John Stomber, chief executive of the fund and Merrill Lynch's former treasurer, apologized to investors.

    "Because CCC has publicly traded securities and is subject to various rules and regulations pertaining to selective disclosure, we relied on our press releases and our Web site instead of communicating directly with individual shareholders. We understand these efforts have been unsatisfactory and frustrating to many of you," he said.
    "We sincerely apologize for this lapse in communication."

    He also said conditions are worse than in October 1998, when the Federal Reserve intervened to compel banks to bail out Long-Term Capital Management.

    "Unlike 1998, the market for AAA-rated U.S. agency floating-rate capped mortgage-backed securities issued by Fannie Mae or Freddie Mac was materially affected by recent events and the market for repurchase agreements secured by high-quality, agency-issued mortgage- backed securities experienced instability," Stomber told investors.