Bear Stearns Still Struggling To Recover

Bear Stearns, which posted its first loss ever this past fourth quarter has a lot of work left to do in order to get out of the red.

Bloomberg is reporting:

Bear Stearns Cos., the securities firm that helped trigger the collapse of the subprime market, reported its first-ever loss after writedowns for mortgage holdings and declines in trading and investment banking.

The fourth-quarter loss of $854 million, or $6.90 a share, was almost four times wider than the average estimate of analysts surveyed by Bloomberg. Moody’s Investors Service cut the firm’s credit rating one level to A2, the lowest since 2003. Bear Stearns, which has fallen almost 44 percent this year in New York Stock Exchange trading, rose 0.9 percent today.

Barring a recovery, Bear Stearns could have a rough 2008 along with most others working with investments.  Keeping this in mind, a 2nd mortgage may prove a better investment than playing the market this year.

January 7, 2008 | Filed Under 2nd Mortgage 

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