Bear Stearns said to ramp up risk controls

Wall Street firm wants greater oversight of its money management unit after meltdown at two hedge funds, WSJ says.


LONDON (CNNMoney.com) -- Bear Stearns is planning to increase the risk controls at its money management division following the blowup of two of its hedge funds, according to a report in the Wall Street Journal.

The Wall Street firm wants greater oversight of its money management unit, which has $60 billion under management, the newspaper said, citing people close to the matter.

The risk management team of Bear Stearns Asset Management will probably report to the parent company's top risk officer, Michael Alix, according to the report.

Two hedge funds at Bear Stearns (Charts, Fortune 500) racked up huge losses last month after they made bad bets in complex securities backed by subprime mortgages. The meltdown of the two fund has sent tremors through financial markets, causing investors to reassess their appetite for risk. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.