Tuesday, August 07, 2007


But what's ours is ours and what's yours is ours. Anyone with any money in these things is gonna get taken to the cleaners. Heavy starch too. Bloomberg (08.07.07):
"Bear Stearns Cos.' decision to liquidate two bankrupt hedge funds in the Cayman Islands instead of New York may limit creditors' and investors' ability to get their money back.

While most of their assets are in New York, the funds filed for bankruptcy protection July 31 in a court in the Caymans, where they are incorporated."

Bear Stearns Caymans Filing May Hurt Bankrupt Funds' Creditors

"The bank also used a 2005 bankruptcy law to ask a U.S. judge in Manhattan to block all lawsuits against the funds and protect their U.S. assets during the Caymans proceedings."

"The Caymans courts make it 'difficult to take legal action there' and are 'much less transparent than American courts,' said Jay Westbrook, a professor at University of Texas Law School in Austin who helped author the 2005 law. The British-administered islands are 'attractive to management,' he said."

Not that there'd be any cash being passed around down there or anything.



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