Liquidity Crisis Goes Global

Thursday's news follows nearly a month of market volatility that has featured failing hedge funds at Bear Stearns, the virtual shutdown of mortgage lender American Home Mortgage (AHM Quote) and steep losses at competitors such as Luminet (LUM Quote) and Accredited Home (LEND Quote).

Rumors about other hedge funds suffering big losses continue to make the rounds, including those centered on Goldman's Global Alpha Fund. Goldman Sachs said rumors that the fund will be shuttered are "categorically untrue," The Wall Street Journal reports. But Goldman is closing its $500M North American Equity Opportunities Fund, TheStreet.com's Mark Decambre reports.