Bear Stearns: Business improving

NEW YORK (CNNMoney.com) -- Bear Stearns executives said Thursday they remained optimistic about their business going forward even as this summer's credit crisis continues to run its course.

CEO Jimmy Cayne, speaking to a group of investors one day after Bear said it would lay off 310 employees in its mortgage business, said he was confident the New York investment bank would weather this summer's credit crisis and work to expand its franchise.

"Have a little confidence - we do," Cayne implored investors at the end of the half-day meeting.

Bear Stearns became the poster child for this summer's credit crisis following the implosion of two of its hedge funds, both of which were heavily invested in securities backed by subprime mortgages.

Two weeks ago, the company revealed just how badly it had gotten hurt by the subprime mortgage and larger credit-market crisis when it reported a steep decline in its third-quarter results. The company also announced it would write-down $700 billion worth of mortgage assets and private equity loan commitments that lost value during the credit crunch.

But Bear Stearns president Alan Schwartz said the tight credit environment that existed a little over a month ago already appeared to be improving.

"As we stand here today, conditions have eased somewhat," said Schwartz. "But we are in the very early stages of seeing how this plays out."

During the meeting, Schwartz and other executives stressed to investors that Bear's fixed-income division, which included its troubled mortgage units, would soon recover and re-emerge stronger than ever, possibly after some consolidation.

The Bear Stearns executives said other areas of the firm, such as its investment banking and equity underwriting businesses, remained healthy. Meanwhile, overseas growth, particularly in Europe and Asia, would help offset any weakness in its other divisions going forward, they said.

Thursday's conference comes after recent speculation that the company has been in talks with outside investors, including Berkshire Hathaway's (Charts, Fortune 500) Warren Buffett, about buying a minority stake in the investment bank.

Cayne declined to comment on the rumors and said the company is "not looking for an equity infusion."

He did, however, leave the door open to an overseas partnership if it is offered some geographic appeal.

"If it adds strategic value to us, then the answer is yes," said Cayne.

Bear Stearns (Charts, Fortune 500) stock edged lower in morning trade on the New York Stock Exchange. Shares of the firm are down nearly 22 percent so far this year.