NEW YORK, March 15 Bear Stearns Cos. Inc.
BSC.N said on Thursday it expects to see large bulk sales of
troubled mortgages over the next several months, providing an
opportunity for the investment bank to make money from the
"The pipelines are built up," Bear Stearns Chief Financial
Officer Sam Molinaro said on a conference call. "(There are) a
lot of assets looking for bids. ... "It's not unreasonable (to
think) we'll see quite a bit of activity in the second and
Bear Stearns, the No. 1 U.S. underwriter of mortgage-backed
securities, also said it expects U.S. mortgage origination
capacity to decline significantly. Molinaro said U.S.
originations of the riskiest loans could fall as much as 30
"Dislocation (in the subprime market) is an opportunity for
us," Molinaro said.
For further information on the subprime crisis, see