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 for...