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 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.