Barclays Bitten By Bear Brouhaha To Tune Of $400M

Jul 23 2007 | 11:04am ET

Faced with the loss of $400 million in the Bear Stearns hedge fund debacle, Barclays is weighing its options—including the option to sue.

Barclays, which had said its exposure to the collapsed Bear funds was “not material,” may be reevaluating that position after Bear said last week that there was effectively nothing left in its two sub-prime mortgage-heavy hedge funds, The Wall Street Journal reports. The newspaper said the British bank is considering three options for trying to recover its investments, including arbitration and negotiation, as well as hauling Bear into court.

Barclays had more riding on the late High-Grade Structured Credit Strategies Enhanced Leverage Fund than most. In addition to its $400 million investment—which reportedly includes money from a Barclays investment product, a situation unlikely to endear the bank to its clients—Barclays had also lent the fund some $200 million, which has been repaid, the Journal reports, and offered it a further $250 million in credit, which wasn’t taken up.

Barclays isn’t the only one considering legal action: Two investors have hired Ross Intelisano, a lawyer who represented a group of Bayou Management investors, to look into how and why the Bear funds collapsed.

“They feel that the information they received was either untrue or inaccurate,” Intellisano told the Journal.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.