PRESS DIGEST - Wall Street Journal - Aug 6

(Reuters) - * Bear Stearns Cos. co-president quit, becoming
Wall Street's highest-profile casualty in the subprime-lending
fiasco.




* ICI reached a tentative deal to be taken over by
Akzo Nobel and Henkel for $16 billion.
The chemical and paint maker had rejected Akzo's earlier
offers.


Read more at Reuters.com Mergers News

UPDATE 3-Bear president resigns; casualty of credit crisis

(Reuters) - NEW YORK, Aug 5 - Bear Stearns Cos
co-President and co-Chief Operating Officer Warren Spector
resigned on Sunday, a casualty of the credit risk crisis at the
investment bank.




Bear Stearns said effective immediately, Alan Schwartz was
the company's sole president.


Read more at Reuters.com Bonds News

Bear Stearns president resigns

(Reuters) - Bear Stearns said that, effective immediately, Alan Schwartz has been named the company's sole president.




Spector's departure follows Bear Stearns' assertion on Friday that it is weathering the worst storm in financial markets in more than 20 years after a major rating company warned mortgage credit problems could hurt the investment bank's profits.


Read more at Reuters.com Business News

Bear Stearns says president Spector has resigned

(Reuters) - In a statement, Bear Stearns said that, effective
immediately, Alan Schwartz has been named the company's sole
president, and Samuel Molinaro will become chief operating
officer in addition to chief financial officer.




Bear also said that Jeffrey Mayer, co-head of the fixed
income division, has been named to the Bear Stearns executive
committee.


Read more at Reuters.com Mergers News

Bear drops after S&P lowers outlook

(Reuters) - The change pushed Bear Stearns' shares down 6 percent to $108.69 and drove the cost of protecting its debt with credit derivatives nearly 50 basis points higher.




A spokesman for Bear Stearns was not immediately available for comment.


Read more at Reuters.com Hot Stocks News

London Boosts Foreign-Exchange Trading to Double New York's Level in April

(Bloomberg) -- London raised average daily currency
trading in April to more than double the level of New York,
extending its lead as the world's largest center for foreign
exchange, according to central bank surveys.

``London tends to dominate in this market,'' said Steven
Barrow, chief currency strategist at Bear Stearns International
Ltd. in London. ``I don't see why that should change.''


Read more at Bloomberg Currencies News

US SEC has hedge fund unit to fight insider trades

(Reuters) - The SEC recently adopted a rule that allows it to go after
hedge fund advisers who make false or misleading statements.




The $1.5 trillion hedge fund industry is being heavily
scrutinized after the high-profile collapse of Amaranth
Advisors LLC and well-publicized problems at two
Bear Stearns Cos hedge funds.


Read more at Reuters.com Government Filings News

Vranos hedge fund seeks $750 mln for subprime - NY Times

(Reuters) - Subprime mortgages are home loans to people with weak
credit. A rising wave of defaults and foreclosures on these
loans recently buckled two hedge funds run by Bear Stearns Cos.
Inc. and has hurt the U.S. housing market as lenders stiffen
requirements.




Read more at Reuters.com Bonds News

Barclays may have lost big in Bear fund: report

(Reuters) - Bear Stearns said on Tuesday that assets in the fund are at this point essentially worthless.




The Journal said Barclays was reviewing its options for recovering the $400 million, citing arbitration, a negotiated settlement or litigation as possible strategies.


Read more at Reuters.com Business News

European Stocks Fall Amid Hedge-Fund Losses, Earnings Outlook; Total Drops

(Bloomberg) -- European stocks dropped this week
following three weeks of gains as investors speculated hedge-fund
losses at Bear Stearns Cos. may signal wider problems in credit
markets and the strong euro might erode earnings.

``There are fears more hedge funds might get into trouble,''
said Juergen Lukasser, who helps manage $20 billion as head of
equities at Constantia Privatbank AG in Vienna. ``After months of
smooth sailing the question of how much risk you're willing to
take has come back. In the long run this might lead to more risk
aversion, making it more difficult to finance takeovers.''


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TREASURIES-Subprime fears, Bernanke growth view boost bonds

(Reuters) - NEW YORK, July 18 - U.S. government bond prices
climbed on Wednesday as investors flocked into low-risk assets
on fears of the subprime mess and Federal Reserve Chairman Ben
Bernanke's view of the housing drag on growth.




There were heightened worries about the health of Wall
Street investment banks after Bear Stearns said late
Tuesday the pair of hedge funds it managed, which had invested
heavily in subprime mortgages, have "very little value."


Read more at Reuters.com Bonds News

U.S. Stocks Retreat on Earnings, Mortgage Concerns; Intel, Financials Fall

(Bloomberg) -- U.S. stocks fell after Intel
Corp.'s earnings report spurred concern profit estimates for
computer companies are too high and Bear Stearns Cos. said the
subprime mortgage crisis wiped out investors in two of its
hedge funds.

Intel, the world's biggest chipmaker, declined the most
since January and led the Dow Jones Industrial Average lower
for the first time in six days. Financial shares posted the
steepest drop in the Standard & Poor's 500 Index after Bear
Stearns said investors in the funds may not get any money back.


Read more at Bloomberg Stocks News

Dollar Rebounds From Record Low Versus Euro as Consumer Prices Increase

(Bloomberg) -- The dollar rose from a record low
against the euro and the weakest in 26 years versus the pound as
a government report showed U.S. consumer prices rose last month
by more than analysts forecast, while housing starts increased.

Traders bought dollars as the report may feed speculation
the Federal Reserve will refrain from reducing its 5.25 percent
benchmark interest rate this year. The dollar slumped earlier as
losses on Bear Stearns Cos. hedge funds dimmed the allure of
U.S. assets.


Read more at Bloomberg Currencies News

Pound Advances to Highest in 26 Years on U.K.'s Rate Advantage Over U.S.

(Bloomberg) -- The pound climbed to a 26-year high
against the dollar on speculation the Bank of England will lift
interest rates this year as losses on U.S. subprime mortgages
prompt the Federal Reserve to stay on hold.

The U.K. currency rose for a fourth day after Bear Stearns
Cos. reported losses on U.S. hedge funds that bet on bonds backed
by subprime mortgages. The BOE today released minutes of its July
5 meeting, showing policy makers voted 6-3 in favor of raising
rates to a six-year high. Inflation exceeded its 2 percent target
for a 14th month in June, a report showed yesterday.


Read more at Bloomberg Currencies News

Merrill CFO says limited risk to Bear hedge funds

(Reuters) - During a conference call with analysts and investors, Edwards reassured them that Merrill Lynch took effective risk management measures before investing in the hedge funds.




He said the company's current exposure to Bear Stearns is "limited and well under control."


Read more at Reuters.com Market News

Regulators say hedge fund woes won't spread

(Reuters) - However, in testimony to Congress the regulators renewed a call for big global banks to improve their hedge fund risk management practices.




Favorable market conditions have helped the Bear Stearns-managed hedge funds to close out positions with a "limited impact on the broader markets," Erik Sirri, the Securities and Exchange Commission's market regulation director, told U.S. lawmakers.


Read more at Reuters.com Government Filings News

Banks and brokers shares fall on subprime woes

(Reuters) - Declines were led by banks perceived to have high exposure to mortgages and other fixed income businesses, including Lehman Brothers Holdings Inc. , which fell 5 percent, and Bear Stearns Cos. , which fell as much as 4.1 percent.




Lenders specializing in mortgages dropped as well. Countrywide Financial Corp. shares fell 3.7 percent, while the shares of subprime specialist NovaStar Financial Inc. fell 8.7 percent.


Read more at Reuters.com Business News

Emerging-Market Bonds Fall on Concerns About U.S. Subprime Mortgage Losses

(Bloomberg) -- Emerging-market bonds fell as concern
U.S. subprime mortgage woes may spread curtailed demand for
riskier, higher-yielding assets.

Developing nation debt has slumped as rising defaults in
U.S. mortgages to people with poor credit histories has triggered
losses at hedge funds. Bear Stearns Cos. said last month it would
bail out a fund that speculated in subprime mortgages. Rising
U.S. Treasury yields, sparked by concern the Federal Reserve will
raise interest rates, also lured investors away from emerging-
market debt.


Read more at Bloomberg Emerging Markets News

US stock indexes fall on rate worries, GM declines

(Reuters) - U.S. stocks fell on Thursday as rising bond yields fueled concern about higher borrowing costs, offsetting earlier optimism about a $20 billion buyout of Hilton Hotels Corp.

General Motors Corp. dragged on the Dow. The largest U.S. automaker's shares fell in reaction to a steeper-than-expected drop in U.S. sales in June. On Thursday, Bear Stearns cut its recommendation on General Motors' stock.


Read more at Reuters Africa

U.S. Stock Index Futures Drop; Energy Producers, Bear Stearns Shares Fall

(Bloomberg) -- U.S. stock-index futures fell after
energy producers retreated as the price of oil dropped to a
nine-day low.

ConocoPhillips, the third-largest U.S. oil company, slid
after it said it will record a charge of $4.5 billion to write
off its Venezuela projects. Bear Stearns Cos. declined after
the investment bank assigned its top mortgage trader to manage
the bailout of a hedge fund, underscoring the risk of losses.


Read more at Bloomberg Stocks News