Two Bear Stearn hedge funds filed for bankruptcy protection, while investors in a third fund managed by the Wall Street bank were barred from withdrawing their money amid concerns that the credit crisis is spreading to other parts of the economy, The Independent reports.
The bankruptcy filings headlined a raft of horrendous news for the $1.5trn (£740bn) global hedge fund industry and fanned fears of a profound global market correction that could reverberate into sectors far beyond America's sub-prime mortgage market, where the problems began. For the second time in a week, the FTSE 100 index suffered a major one-day fall, shedding 110 points, or 1.7% of its value. Last week, the benchmark index had its biggest one-day drop in four years. HOUSE PRICES ROSE at a faster pace in July than June, the Halifax says this morning, but the underlying pace of growth ...
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