Friday, February 23, 2007
The ramifications of last month's bankruptcy court decision, requiring Bear Stearns to turn over to the bankruptcy estate of a failed hedge fund client $160 million, are explored in NY Times, The Bankruptcy Development That Has Wall St. Worried. The court found that Bear Stearns failed to adequately investigate red flags that would have disclosed the fraud. Prime brokerage, providing services to hedge funds, is lucrative business on Wall St. these days.