Bear Stearns' calculations of losses incurred by two beleaguered hedge funds that it oversees may now take up until July 16th, it has been reported.
Last month, it was announced that the High Grade Structured Fund Credit Enhanced Leveraged Fund and the High Grade Structured Credit Strategies Fund were struggling and had posted crippling losses.
In response, the investment bank announced it has earmarked some $1.6 billion to rescue the High Grade Structured Credit Strategies Fund and that its sister fund is to be wound down.
However, according to a report in the Wall Street Journal Online the bank's programme of action is taking longer than had been anticipated since tallying the funds' losses has been delayed because the securities in which the funds had invested are thinly traded and the market for them has been volatile.
News of the delays follows reports that Jeffrey Lane has replaced Richard Marin as head of Bear Stearn's asset management unit in a move intended to restore flagging investor confidence.