Bear Bitten By Hedge Fund Collapses, Mortgage Crisis

Sep 20 2007 | 11:27am ET

Bear Stearns Cos. today reported its third quarter profits plunged 62% following this summer’s collapse of two of its hedge funds, which Bear blames for $200 million of that drop.

Third-quarter net income dropped 61% to $171.3 million, or $1.16 a share in Q3. That’s down from $437.6 million one year ago, Bear Stearns said in a statement.

Meanwhile, Bear’s revenue from fixed-income sales and trading also caused a dent in Q3 revenue, falling 88% (to $117.6 million) compared to the same time period last year.

Bear’s CEO James Cayne called the current market conditions “extremely challenging.”

Meanwhile, the Wall Street firm also announced a $2.5 billion stock-buyback plan in an effort to boost share prices.


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.