Bear takes $859 million 4Q hit

The Bear Stearns Cos. Inc. posted the first quarterly loss in the company’s 84-year history.
The New York-based financial services company lost $859 million, or $6.90 per share, for the quarter ended Nov. 30, compared to a profit of $558 million or $4 per share during the same period in 2006.
Bear said that it would record a $1.9 billion write-down for subprime-related investments and fixed-income trading, higher than the $1.2 billion write down that the company estimated last month.
The company recorded a $956 million four quarter loss in its capital markets business, down from net revenues of $1.9 billion in the fourth quarter of 2006.
The company confirmed earlier reports that members of its executive committee, including chairman and chief executive officer James E. Cayne, will not receive bonuses this year.
“We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses,” Mr. Cayne said, according to a statement.
The results for the company were not all negative.
Revenue in the wealth management division increased 10% from last year to $272 million and global clearing services increased 2% to $276 million.

The New York-based financial services company lost $859 million, or $6.90 per share, for the quarter ended Nov. 30, compared to a profit of $558 million or $4 per share during the same period in 2006.
Bear said that it would record a $1.9 billion write-down for subprime-related investments and fixed-income trading, higher than the $1.2 billion write down that the company estimated last month.
The company recorded a $956 million four quarter loss in its capital markets business, down from net revenues of $1.9 billion in the fourth quarter of 2006.
The company confirmed earlier reports that members of its executive committee, including chairman and chief executive officer James E. Cayne, will not receive bonuses this year.
“We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses,” Mr. Cayne said, according to a statement.
The results for the company were not all negative.
Revenue in the wealth management division increased 10% from last year to $272 million and global clearing services increased 2% to $276 million.

Related Topics: Bear Stearns Cos.