{"id":4459,"date":"2007-06-21T11:38:51","date_gmt":"2007-06-21T11:38:51","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/06\/merrill_lynch_seizes_400_milli"},"modified":"2021-09-20T15:41:33","modified_gmt":"2021-09-20T20:41:33","slug":"merrill-lynch-seizes-400-milli","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-seizes-400-milli\/","title":{"rendered":"Merrill Lynch Seizes $400 Million of Assets from a Bear Stearns Managed &#8216;Subprime&#8217; Hedge Fund for Failing to Meet Margin Calls"},"content":{"rendered":"<p>\t\t\t\tA hedge fund managed by Bear Stearns that takes both bullish and bearish positions in subprime loans has been hit heavily by conditions in that market.  Some of the fund&#8217;s assets were held at Merrill Lynch, on margin.  When the equity in the fund dropped, Merrill issued margin calls.<\/p>\n<p>The hedge fund reportedly began with about $600 million in investor capital, $40 million of that from Bear Stearns and its executives, then borrowed $6 billion from Wall Street lenders, including Merrill, Goldman Sachs, Bank of America and Deutsche Bank.<\/p>\n<p>As the fund&#8217;s assets lost market value, the Bear Stearns managers scrambled to sell hundreds of millions of dollars in assets to satisfy demands for cash and assets from creditors to stave off liquidation of the fund. The managers auctioned almost $4 billion in mortgage bonds, and attempted to present a 30-day plan to sell more assets, but was unable to persuade Merrill to refrain from seizing assets.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-seizes-400-milli\/\"  title=\"Continue Reading Merrill Lynch Seizes $400 Million of Assets from a Bear Stearns Managed &#8216;Subprime&#8217; Hedge Fund for Failing to Meet Margin Calls\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A hedge fund managed by Bear Stearns that takes both bullish and bearish positions in subprime loans has been hit heavily by conditions in that market. Some of the fund&#8217;s assets were held at Merrill Lynch, on margin. When the equity in the fund dropped, Merrill issued margin calls. The hedge fund reportedly began with [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3807,3818,3754,3748,3787],"tags":[],"class_list":["post-4459","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-bear-stearns","category-deutsche-bank","category-goldman-sachs-1","category-hedge-funds","category-morgan-stanley"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Merrill Lynch Seizes $400 Million of Assets from a Bear Stearns Managed &#039;Subprime&#039; Hedge Fund for Failing to Meet Margin Calls &#8212; Investor Lawyers Blog &#8212; June 21, 2007<\/title>\n<meta name=\"description\" content=\"A hedge fund managed by Bear Stearns that takes both bullish and bearish positions in subprime loans has been hit heavily by conditions in that market. &#8212; June 21, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-seizes-400-milli\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Merrill Lynch Seizes $400 Million of Assets from a Bear Stearns Managed &#039;Subprime&#039; Hedge Fund for Failing to Meet Margin Calls &#8212; Investor Lawyers Blog &#8212; June 21, 2007\" \/>\n<meta name=\"twitter:description\" content=\"A hedge fund managed by Bear Stearns that takes both bullish and bearish positions in subprime loans has been hit heavily by conditions in that market. &#8212; June 21, 2007\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Merrill Lynch Seizes $400 Million of Assets from a Bear Stearns Managed 'Subprime' Hedge Fund for Failing to Meet Margin Calls &#8212; 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