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NEW YORK (AP) - Bear Stearns Cos. demoted the head of its asset-management unit and brought in a former Lehman Brothers executive to "restore investor confidence," after two of the firm's hedge funds nearly collapsed last week.
Bear Stearns named Jeffrey Lane, 65, chairman and chief executive of Bear Stearns Asset Management. He replaces Richard Marin, who will stay with the unit as a senior adviser to Lane.
Earlier this week Bear said it would spend $1.6 billion to bail out a hedge fund heavily invested in risky securities backed by mortgage loans. A second, larger fund also teetered on the brink of collapse before Bear, considered the pre-eminent Wall Street firm dealing in mortgage-backed securities, won a reprieve from lenders clamoring for more collateral.
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