TUESDAY AUGUST 07
Bear Stearns' Cayman Plan

Bear Stearns will liquidate its two bankrupt hedge funds in the Cayman Islands - not New York. It's been reported that such a move might prevent some investors and creditors from getting funds back. Furthermore, they are asking a judge to block all lawsuits during the entire process, citing a 2005 bankruptcy law. Not only is this potentially bad news for investors, but there is more concern, as many believe this situation - if allowed to happen - can set precedent for other hedge funds. Said Evan Flaschen, a lawyer: "This is definitely going to be closely watched."

August 2007

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