Bear Stearns to investors: All is well

Bear Stearns sent letters to investors this week reassuring them that the firm was financially stable.

The Bear Stearns Cos. Inc. sent letters to investors this week, reassuring them that the firm was financially stable, The Associated Press said.
The highly publicized fizzling of the firm’s two hedge funds and the resulting ouster of co-president Warren Spector have put Bear Stearns’ clients on edge.
The New York-based firm’s recent review for a downgraded rating by Standard & Poor’s hasn’t helped either.
Now the Wall Street bank is concerned that customers will pull away.
“The Bear Stearns franchise is financially strong,” the letter said, according to the AP.
“Rest assured, Bear Stearns has seen challenging markets before and has the experience and expertise to serve you well.
The company also provided its employees with a set of talking points in which they are told to describe recent management shifts as “appropriate” and to say that there is “ample liquidity” to support the firm’s business, the AP reported.
CEO James Cayne has also been calling other major Wall Street banks and institutional investors to personally reassure them that all is well, the AP said.