Read
- Exclusive: Fidelity facing "thousands" hit by Facebook woes
- WRAPUP 4-Facebook market makers' losses total at least $100 mln
- SpaceX capsule zips through practice drive by space station
- U.S. senators penalize Pakistan for jailing doctor who aided CIA
- Facebook market makers' losses total at least $100 million
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Afghan army recruit
A look at an Afghan recruit as he goes through the process of joining the Afghan National Army. Slideshow
Traders sought to "induce panic" over Bear: CEO
WASHINGTON |
WASHINGTON (Reuters) - The head of Bear Stearns Cos told a Senate panel on Thursday that some traders may have sought to whip up concern about the investment bank just before it collapsed last month.
"I would just say as an observer of the markets, it looked like more than just fear. It looked like people wanted to induce a panic," Bear chief executive Alan Schwartz told the Senate Banking Committee in response to questions.
"I always had a concern that the lack of a known liquidity facility for your collateral is something that can cause a problem with the lenders against that collateral. All of us as investment banks lend against high-quality collateral and we turn around and use that collateral," he said.
"I don't think the value of the collateral collapsed. The willingness of people to lend against it just dissipated because of fear," Schwartz added.
(Reporting by Karey Wutkowski, Editing by Chizu Nomiyama,)
- Tweet this
- Link this
- Share this
- Digg this
- Reprints
Follow Reuters