JPMorgan cancels Bear fund asset auction: source

The J.P. Morgan Chase & Co. headquarters in a file photo. JPMorgan Chase has canceled its auction of assets from two troubled Bear Stearns hedge funds, a source familiar with the matter said on Wednesday.

NEW YORK (Reuters) - JPMorgan Chase & Co. (JPM.N) has canceled its auction of assets from two troubled Bear Stearns Cos. Inc. BSC.N hedge funds, a source familiar with the matter said on Wednesday.

Bear Stearns is currently negotiating with JPMorgan Chase, Merrill Lynch & Co. Inc. MER.N, Citigroup (C.N) and other creditors in an attempt to restructure the hedge funds, which have suffered significant losses.

Merrill Lynch, JPMorgan Chase and others had put some of the Bear Stearns assets up for sale, but JPMorgan Chase has canceled its auction and is negotiating instead, the source said.

(Reporting by Dan Wilchins)