New York – Bear Stearns Cos. executives said Thursday that their investment-banking business is slowly rebounding after a turbulent summer.
“Most of our businesses are beginning to rebound,” Bear Stearns chief executive James Cayne said at the Wall Street firm’s analyst day. He said he is “confident in our future, and our business, and we see compelling value in our own stock.”
But uncertainty lies ahead. Bear Stearns president Alan Schwartz said the market is in the “very early stages” of a recovery. The company sees “tremendous opportunities” to gain strength in various areas because of the dislocation created by this past summer’s credit crunch, he said.
Schwartz said the Federal Reserve’s half-percentage-point interest-rate cut has helped stabilize jittery markets.
Since the rate cut, “We are seeing flows. You can see the tension in the markets ease,” Schwartz said.
He said term financing has gotten easier, and he cited banks’ ability to get leveraged loans off their books, including loans financing the First Data Corp. leveraged buyout.
Schwartz also said the outlook for investment banking is “relatively strong.”
