Reuters is reporting that Bear Stearns (NYSE:BSC) is paying $1 Million as a settlement to Enron creditors to settle a lawsuit related to equity transactions. The agreement requires bankruptcy court approval.
In exchange for the $1 million, Enron’s creditors and Bear Stearns will withdraw other claims against each other. This article also notes that Credit Suisse (NYSE:CSR), Lehman Brothers (NYSE:LEH), and UBS (NYSE:UBS) have all previously entered into different settlements with creditors.
The good news here is that will not even be considered a road bump nor even a noticed line-item in the financials at Bear Stearns. The creditors probably spent more lawyer/hour fees than this to get that settlement. At least as as far as it pertains the troubled broker, it looks like on this front that Bear won’t have to pay for sins of the farther and farther past and can just worry about its current loan and derivative exposure.
Jon C. Ogg
October 29, 2007