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DealBreaker Afterhours: Is Bear Energy Selling Off Its Natural Gas Portfolio?

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There’s lots of talk about what the fate of Bear Stearns will be. Most likely it will be a combination of a sale of some divisions to bidders and the liquidation of lots of assets to raise cash.
So what will they liquidate? How about some energy inventory? Word is circulating among the energy traders that Bear Stearns is selling off its natural gas futures contracts and physical inventory to raise cash. The kings of energy trading reporting at Platts are reporting that Bear Stearns has now gone out and denied the reports.
“Several players in the North American gas and power markets contacted by Platts on Friday said they are concerned about the liquidity of Bear Energy, with some analyzing their exposure to the Houston-based firm,” Platts is reporting “ At least one market participant speculated on Friday that Bear Energy's counterparties could send letters over the weekend demanding the trader increase its collateral on both physical and financial deals.”
[Editor's Note: Shoot! We've already missed an hour of Friday happy hour at Tom & Jerry's. We're out of here. We'll post over the weekend if we learn more about Bear Stearns. Email us at And if you run into us over the weekend and show us your Bear Stearns ID, we'll buy you a round. Drinks are on us, lads and lasses. It's been a tough day for you kids.]