- Greece Austerity Deal Runs Into Trouble Once Again
- Why Greece Will Default, Leave Eurozone
- Housing Still Hurting Consumers, Economy: Bernanke
- Get Ready for $5 Gas This Year: Ex-Shell CEO
- Diamond Investing: Why It's Not for the Faint of Heart
- Obama Backs Down on Birth Control Plan
- Israel Likely to Bomb Iran This Year: Political Analyst
- The World's Best Beers
- Users of Citibank Bill-Pay App Charged Twice
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- This Valentine’s Day Love Is Served on a Silver Platter
- CEO to CEO: Our Roles Are Changing
- Clint Eastwood ‘Surprised’ by Reaction to Chrysler's ‘Halftime in America’ Ad
- Bulls Check In to Community Health
- Bank of America’s Worst-Case Scenario Gets More Real
- Tesla Unveils First SUV: Model X
- New York Fashion Week Hits the Runway as Colors Pop
MOST SHARED
- How to Date a Wall Street Man
- Europe Shares End Lower, Hit by New Greek Concerns
- Unions Launch Strike in Greece
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- Bill Murray's View on the Economy
- The World's Best Beers
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- Spent Keurig K-Cups Filling Up U.S. Landfills
- Greece Austerity Deal Runs Into Trouble Once Again
- Jobs You Can Do Forever
MOST POPULAR
HOT ON FACEBOOK
CNBC: Plan Made to Save Bear Stearns Fund from Liquidation
Text Size 
After a full day of negotiations, creditors have cobbled together a plan to save Bear Stearns' troubled subprime mortgage fund from liquidation, CNBC's Charles Gasparino reported. It includes a major infusion of capital around $500 million into the fund from a group of firms, including Citigroup and Barclays Bank, people tell CNBC. That money will be used to meet future margin calls.
In addition, Bear Stearns [BSC
Loading...
()
] has agreed to put its own money into the fund, about $1.5 billion. Bear had only invested around $40 million of company money and from its executives.
The cornerstone of the plan is a commitment by the creditors not to make margin calls on the fund for the next year.
Sources say the plan has yet to be approved by all the creditors and a final decision could be made later tonight or early tomorrow morning. The plan may also ultimately be rejected by the creditors, which means that the fund could be liquidated in the coming days.
CNBC was first to report earlier today that one of the fund's creditors, Merrill Lynch [MER
Loading...
()
], postponed seizing some $400 million in the fund's assets and selling them after Bear Stearns informed the big investment bank that it had come up with a plan to recapitalize the troubled hedge fund. That sparked a full day of negotiations among the fund's top creditors, which was described as a last ditch effort to prevent liquidation.
- Actor Clint Eastwood responds to critics over the Chrysler Super Bowl ad and all the controversy.
- Here’s a look at Westminster Kennel Club’s most successful breeds and how much they cost.
- When looking for that next career move, workers need to look at the differences between a start-up and a public firm.
- After enduring the recession, many Baby Boomers say money isn’t the most important thing they hope to leave to their kids.
- The ‘Fast Money’ traders weigh in on fashion related stocks from apparel to footwear to accessories and fragrances.
- Attention, online shoppers. The days of tax-free online shopping may be coming to an end in many states.
Data is a real-time snapshot *Data is delayed at least 15 minutes
