Over the last two days, Bear Stearns (BCS) shares have gone from an intra-day high of $60.43 to a low of $58.50. Based on news from CNBC, the shares could go lower in the next week.
It appears that law firm Bernstein Litowitz Berger and Grossman is being retained by some investors in two hedge funds that were virtually wiped out from large bets on risky mortgages are preparing to sue the financial company, according to Reuters. The theory behind the legal action is that documents describing the risks of the funds were misleading.
Reuters points out that the investors in the funds were sophisticated, so the suit may not wash.
But, BSC does not need the distraction, and the sub-prime mortgage hedge fund issue may be getting worse. If so, Bear Stearns may be in for several months of scrutiny as the market looks for people to blame.
Another witch hunt from investors who won’t blame themselves for losing their money.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.