Bear Stearns seizes troubled hedge fund's assets

NEW YORK, July 26 (Reuters) - Bear Stearns Cos BSC.N has seized control of most assets in a troubled hedge fund, after declines in the value of riskier, subprime home loans caused the fund's value to plummet.

In a statement on Thursday, Bear Stearns said it "assumed possession of the assets" securing a $1.3 billion credit facility provided to the High-Grade Structured Credit Strategies Fund after the fund was unable to meet a margin call.

The investment bank said it does not expect any "material change" in financial exposure as a result of its action. It said it will continue to pursue an "orderly liquidation" of the assets, and will be in position to establish appropriate hedges to protect against future price declines. (Reporting by Jonathan Stempel)