Citic Group Chmn: Plans “Overall Evaluation” Of Bear Deal
Last Update: 3/15/2008 9:42:43 PM
BEIJING (Dow Jones)–The corporate parent of Citic Securities Co. (60030.SH) said
Sunday the brokerage is rethinking its deal to buy into U.S. investment bank Bear
Stearns Cos. (BSC) after Bear’s financial crisis triggered a bailout plan.
China International Trust & Investment Corp. Chairman Kong Dan told Dow Jones
Newswires that its Citic Securities unit would conduct an “overall evaluation” of
the deal, in which it originally agreed in October to invest $1 billion in Bear.
Kong said Citic Securities would be closely watching how Bear is able to respond
to a liquidity crisis and remained concerns about the bank’s troubles, which
began unfolding last year with subprime losses.
Citic Securities would make an official statement on the matter Monday through
the Shanghai stock exchange, Kong said on the sidelines of China’s annual
legislative meeting.
Bear suffered a sharp liquidity crisis late last week.
JPMorgan Chase & Co. (JPM) agreed to provide Bear with emergency financing for
four weeks, with guarantees from the New York Federal Reserve, while a permanent
solution is sought for Bear’s troubles.
Kong said Citic Securities had been in touch with JPMorgan on the matter, but he
refered to the communication as “technical” in nature and did not elaborate.
-Juan Chen contributed to this story; Dow Jones Newswires; (8610) 6588 5848;
juan.chen@dowjones.com
BEIJING (Dow Jones)–The corporate parent of Citic Securities Co. (60030.SH) said
Sunday the brokerage is rethinking its deal to buy into U.S. investment bank Bear
Stearns Cos. (BSC) after Bear’s financial crisis triggered a bailout plan.
China International Trust & Investment Corp. Chairman Kong Dan told Dow Jones
Newswires that its Citic Securities unit would conduct an “overall evaluation” of
the deal, in which it originally agreed in October to invest $1 billion in Bear.
Kong said Citic Securities would be closely watching how Bear is able to respond
to a liquidity crisis and remained concerns about the bank’s troubles, which
began unfolding last year with subprime losses.
Citic Securities would make an official statement on the matter Monday through
the Shanghai stock exchange, Kong said on the sidelines of China’s annual
legislative meeting.
Bear suffered a sharp liquidity crisis late last week.
JPMorgan Chase & Co. (JPM) agreed to provide Bear with emergency financing for
four weeks, with guarantees from the New York Federal Reserve, while a permanent
solution is sought for Bear’s troubles.
Kong said Citic Securities had been in touch with JPMorgan on the matter, but he
refered to the communication as “technical” in nature and did not elaborate.
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