Thursday's Financial Winners & Losers
Credit and liquidity concerns swirling around Bear Stearns (BSC) sent the stock to new lows and pulled the financial sector down with it.
The brokerage house wobbled as early morning options trading saw heavy volume in puts being written at low prices. Bear Stearns was selling shares at $53.99, but had been as low as $50.48, a decline of 16%.
Additionally investors are becoming increasingly concerned about the company's mortgage holdings and its ability to finance them. Not only that, Bear is a creditor of private equity firm Carlyle Capital, which is expected to go out of business after it was unable to meet its margin calls. Carlyle announced late on Wednesday that it expected creditors to seize its remaining assets.
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