Skip navigation
Watchlist Sponsored By :


Current DateTime: 10:27:40 10 Feb 2012
LinksList Documentid: 35816813

Current DateTime: 10:27:40 10 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/10/2012 10:30:24 AM

MOST SHARED


Current DateTime: 10:27:41 10 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/10/2012 10:30:45 AM

MOST POPULAR


Current DateTime: 10:27:41 10 Feb 2012
LinksList Documentid: 35819650
    • Road Warriors

        All the gadgets and gear a savvy frequent traveler needs to navigate the global economy.

HOT ON FACEBOOK

Bear Stearns CEO:  No Liquidity Crisis for Firm

Published: Friday, 14 Mar 2008 | 9:45 AM ET
Text Size
By: Andrew Fisher

Three days before announcing that Bear Stearns' financial situation had substantially worsenend, chief executive Alan Schwartz told CNBC he is not aware of any imminent threat to the Wall Street investment bank's liquidity.

In an exclusive interview with CNBC's "Squawk On the Street" on Tuesday, Schwartz refuted market rumors about a cash crunch at Bear Stearns [BSC  Loading...      ()   ] that had knocked its stock down sharply. Schartz said he didn't know where the rumors originated.

"Part of the problem is that when speculation starts in a market that has a lot of emotion in it, and people are concerned about the volatility, then people will sell first and ask questions later, and that creates its own momentum," he said.

Bear Stearns was given a boost this week when Securities and Exchange Commission Chairman Christopher Cox said his regulatory agency is comfortable with the 'capital cushions' at the nation's five largest investment banks.

Schwartz says he has numbers to back up his insistence that the bank's position is solid.

"We finished the year, and we reported that we had $17 billion of cash sitting at the bank's parent company as a liquidity cushion," he said.  "As the year has gone on, that liquidity cushion has been virtually unchanged."

Last summer, two Bear Stearns hedge funds collapsed, in large part because of their huge weighting in subprime mortgages.  The collapses were blamed for triggering the worldwide freeze in credit markets and have continued to hold down the investment bank's profitability.

Group of Securities
Loading...
Loading...
Loading...
Loading...
Loading...

© 2012 CNBC.com

CNBC HIGHLIGHTS

  • Clint Eastwood
  • 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.
  • Job Interview
  • 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.


Current DateTime: 09:37:11 10 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 09:37:12 10 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 10:10:41 10 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 09:37:12 10 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters