Banking, finance, and taxes
The Due Diligence Derby: Barclays (BCS) Sues Bear Steans (BSC)
Published:
Barclays (BCS) has sued Bear Stearns (BSC) over the failure of two of the US companies hedge funds. In particular, the bank says that BSC dumped $500 million of risky investments into one of the funds just before it failed.
The reaction of the US company, according to Reuters, was "While we do not like to see investors or counterparties lose money, we believe this lawsuit is an attempt by Barclays to avoid taking responsibility for its own actions."
Bear Stearns may have done some improper asset dumping. If so, it will probably get into trouble. But the entire fiasco is a miniature portrait of what went wrong in the current credit market meltdown. Sophisticated financial companies bought complex financial instruments from other sophisticated financial firms. The level of research, questioning, and due diligence appears to have been nearly non-existent.
Wall St. will ponder for a long time why, with its advanced research capacity it could be caught so short on the ability to evaluate financial instruments which it, is essence, it created.
It is like looking into a mirror and not recognizing your own face.
Douglas A. McIntyre
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
