Bear Stearns’ calculations of losses incurred by two beleaguered hedge funds that it oversees may now take up until 16 July according to reports.
Last month, it was announced that the High Grade Structured Fund Credit Enhanced Leveraged Fund and the High Grade Structured Credit Strategies Fund had posted losses.
In response, Bear announced it had earmarked some $1.6 billion to rescue the High Grade Structured Credit Strategies Fund and that its sister fund would be wound down.
However, according to a report in the Wall Street Journal Online, the measures are taking longer to implement than anticipated because tallying the funds' losses has proved difficult when they are invested in thinly traded and volatile securities.
News of the delays follows reports that Jeffrey Lane has replaced Richard Marin as head of Bear Stearn's asset management unit.