Bear Stearns, eager to avoid the dissolution of two big, but
struggling, hedge funds, has reportedly proposed a $3.2 billion
bailout that would keep the funds creditors from seizing
and selling assets.
The firm yesterday informed the funds lenders that it
would take over their loans. The bailout was proffered after
reports that at least three of the lenders had offered their
collateral for sale. Bear Stearns did not return calls