The settlement, which reportedly includes a requirement for Bear to hire an independent consultant to review its trading policies but does not require it to admit guilt, would be among the largest brought against companies implicated in the three-year-old mutual fund trading scandal. One of the hedge funds whose trades Bear processed was Canary Capital Partners.
However, in spite of the $3.5 billion in penalties that companies have paid thus far due to this scandal, some skeptics in the industry think illegal trading practices will continue
"It lifts one cloud," fund manager Marshall Front of
On Dec. 15, Bear Stearns Chief Executive Officer James Cayne issued a statement saying the firm was fully reserved to cover the cost of a settlement.