The hedge fund giant, whose flagship fund is down almost 40% this year, denied a Wall Street Journal report that banks were demanding increased collateral as its losses mounted. Gerald Beeson, the firm’s chief operating officer, said Friday that it was meeting its daily collateral requirements with Goldman Sachs, Deutsche Bank, Merrill Lynch and others without being forced to sell its assets to cover the margin calls.
Haven’t we heard this tune before? Wasn’t Bear Stearns reassuring the public that they were financially sound or how about Merrill, with a bit of Wachovia and then a touch of Washington Mutual.
Regardless of the rumors it makes no sense for them to actually come out and say we are in trouble and the ship is sinking get out. Sure they have the interests of their investors to look after, but they will probably goto great lengths to keep plugging holes until there are simply too many.