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DealBroken: Last Week's News Today

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A pair of troubled hedge funds managed by Bear Stearns sent shivers of fear through Wall Street and the hedge fund community, and Bear was forced to bailout the funds. The Hollywood guy who ran Yahoo was forced out, leaving the company in the hands of one of its founders. The Supreme Court struck down a pair of lawsuits that threatened to impose tremendous liability on investment banks.
Morgan Stanley posted strong earnings. Bankers and others from corporate New York ran wild in Central park. The New York Public Library honored Stephen Schwarzman with a star-studded party. The board of Dow Jones took over the negotiations for a possible sale of the company to News Corp. This seems to have put an end to the plot by Pearson and General Electric to stifle competition from a combination of News Corp and General Electric to stifle competition from a combination of Dow Jones and News Corp, which has indicated it might launch a competitor to GE’s CNBC and beef up the foreign bureaus of the Wall Street Journal.
The immigration bill came back to life on Capitol Hill, and the Senate approved increased fuel-efficiency standards. A bill to tax partnership gains as income rather than capital gains was introduced in the House of Representatives. The Blackstone Group’s Pete Peterson went to a party for his daughter on the evening that the company he co-founded priced it’s IPO at $31 a share. The stock closed up 13% the next day after a higher opening.