Bear Stearns ramping up risk controls

After two hedge funds fell foul of the subprime crisis, Bear Stearns gets tough on risk controls

Bear Stearns is planning to tighten risk controls at its asset management division following recent heavy losses incurred by two of its hedge funds, says a report in US newspaper the Wall Street Journal.

The hedge funds suffered severely as a direct result of the subprime meltdown in the US and the bank hopes the move will help avoid similar situations developing in future.

To centralise control of the unit and bring it under the closer scrutiny of the bank, a number of new measures will be introduced, the foremost of these will be making the unit report to the Michael Alix, chief risk officer at Bear Stearns, rather than the chairman and chief executive of the division. The number of risk managers at the unit is also to be increased, said the WSJ.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here