This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Credit Suisse CEO Squashes Bear Stearns Takeout Talk

Updated from 2:19 p.m. EST

Credit Suisse (CS) Chief Executive Brady Dougan has dismissed market rumors that the Swiss bank might make a run at beleaguered investment house Bear Stearns (BSC) to senior bankers at his firm.

Dougan told Credit Suisse bankers during the World Economic Forum in Davos, Switzerland, last week that a hook-up between the Swiss giant and Bear Stearns was a non-starter, bankers attending the industry forum with the CEO tell

A spokesman at Bear declined to comment. A Credit Suisse representative in New York also declined to comment.

Bear's plunging market capitalization has stirred up chatter of a takeover of the once-highly regarded fixed-income-centric firm. Indeed, last week, rumors were swirling, including reports on CNBC, that Bear might be in Credit Suisse's crosshairs.

Credit Suisse has so far sidestepped much the writedowns on subprime securities that have slammed U.S. banks such as Bear, Citigroup (C) and Merrill Lynch (MER). U.S. financial firms have racked up approximately $100 billion in writedowns on soured mortgage paper.

Bear has been at the center of the subprime storm and may have very well spurred the wave of writedowns its peers are incurring when it was forced to bail out a pair of highly leveraged hedge funds.

Amid this crisis, Bear and the rest of the banking industry are under intense scrutiny, and any offer for the company would have to take into account several government inquires and lawsuits directed at the firm.

Numerous regulatory and government bodies, including the Securities and Exchange Commission and Federal Bureau of Investigation are checking to see if firms were involved in wrongdoing when they originated, packaged and sold mortgages and mortgage-related securities.

According to media reports, the FBI is investigating some 14 firms for their role in the mess. That probe is believed to include some of the biggest originators of mortgage-tainted debt, such as Bear, Merrill, Citi, and potentially troubled home loan provider Countrywide Financial (CFC). The FBI has not publicly identified the companies it is probing.

Bear has also been sued by firms such as Barclays Capital (BCS) over how the company unwound assets in its hedge funds. In addition, the New York attorney's office is investigating whether Bear selectively allowed the withdrawal of some money from its hedge funds while the assets within the fund were collapsing in value.

Shares of Bear Stearns recently were down $1.99, or 2.2%, to $89.59.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,064.28 +10.57 0.06%
S&P 500 2,093.09 +4.32 0.21%
NASDAQ 4,812.4370 +5.5780 0.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs