Bear Stearns said to ramp up risk controls

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.