Cox Says Bear Didn't Violate Capital Requirements

Law360, New York (March 21, 2008, 12:00 AM EDT) -- The top U.S. securities regulator disclosed information on Bear Stearns Cos.' liquidity situation in the weeks leading up to its collapse, saying the investment bank was a victim of "a lack of confidence, not a lack of capital."

U.S. Securities and Exchange Commission Chairman Christopher Cox reflected on Bear's precipitous fall in a letter sent Thursday to Dr. Nout Wellink, the chairman of the Basel Committee on Banking Supervision.

Even as its liquidity declined sharply in the days leading up to its announced fire sale to...
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