- Dubai Stock Selloff May Bring Buying Opportunity
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- Dubai's Debt Woes Signal New Era for Creditors
- Longer Lines, Fuller Carts This Black Friday
- The World's Biggest Debtor Nations
- Five Tips for Buying a Foreclosed Home
- Shoppers Hit Black Friday Sales; Budgets Pared
- Slideshow: Fantasy Christmas Gifts 2009
- EA Sports Hopes to Pump Up Sales With Pop-Ups
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
- 8 Retailers that Gain During the Holidays
- Farrell: What's Different On This Black Friday
- 10 Dividend Picks For Your Portfolio: Chief Investors
MOST SHARED
- 8 Retailers that Gain During the Holidays
- Get Paid Six Figures to Wear a T-Shirt?
- Finding the Holiday's Best Buys
- Dubai Spooks Investors But May Bring Buying Opportunity
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- Banks Play Down Dubai Exposure, Investors Still Wary
- Longer Lines, Fuller Carts This Black Friday
- Some of Dubai World's Major Holdings Around Globe
Text Size 
Bear Stearns' [BSC
Loading...
()
] two troubled hedge funds that bet heavily on risky subprime loans are "essentially worthless," CNBC's Charlie Gasparino reported.
The net asset value for one Bear fund, known as the High-Grade Structured Credit Strategies Fund, is about 9 cents on the dollar, while the other is even "less than that," Gasparino said.
"The real question now becomes what is Bear Stearns liability?" Gasparino said, speaking of the investment bank's potential legal exposure.
Prominent investor attorney Jake Zamansky, Gasparino said, "has received several phone calls from investors asking him to study whether they should bring lawsuits against Bear Stearns. What they're saying to Zamansky is that Bear Stearns somehow misrepresented whether they should stay in the fund instead of leaving when they wanted to earlier in the year."
Bear Stearns Asset Management said in June that it would not plan to bail out its High-Grade Structured Credit Strategies Enhanced Leverage Fund, the net asset value of which
has fallen to "almost nothing," according to the source.
Bear Stearns was forced last month to bail out that fund with $1.6 billion to prevent a fire sale of those assets.
That fund was down about 5 percent through April. The Bear Stearns High-Grade Structured Credit Strategies fund had $925 million of investor capital and gross long positions of $9.682
billion through March 31.
The Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage fund reported $638 million of investor capital and gross long positions of $11.15 billion.
Company spokesman Russell Sherman declined to comment, but said that an e-mail was sent to investors on Tuesday which would be made available later.
Thomas Marano, the head of the firm's mortgage department who was picked to help salvage the fund, declined to comment.
Print
Email
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
- Some of the nation's top bartenders offer suggestions on what to serve at holiday celebrations this year.
Data is a real-time snapshot *Data is delayed at least 15 minutes