Merrill reportedly seizes $400M from fundInvestment bank to auction assets from a Bear Stearns fund after a negative bet on the subprime market.NEW YORK (CNNMoney.com) -- Merrill Lynch has seized $400 million of its assets from a troubled hedge fund managed by Bear Stearns, the Wall Street Journal reported in its online edition. Last week, Bear Stearns' (Charts, Fortune 500) High-Grade Structured Credit Strategies Enhanced Leveraged Fund scrambled to sell-off $4 billion in bonds backed by risky subprime mortgages to raise cash and assets for creditors and avoid liquidation, the Journal reported. The report said the investment bank Merrill Lynch (Charts, Fortune 500) will auction the seized assets Monday at noon, in a move that could spur other lenders to seize funds. The Bear fund has been hurt by a rebound on a key index that tracks subprime mortgages, the paper said. |
Sponsors
|