Reuters- The liquidators of two Bear Stearns mortgage hedge funds that collapsed last year, filed suit on Monday against the company and its auditor, Deloitte & Touche, seeking to recover over $1 billion (500 million pounds) in losses.
The suit, filed in U.S. District Court in Manhattan, accuses Bear, the managers of the hedge fund, and Deloitte, of not living up to assurances that the funds were relatively safe and conservative investment vehicles.
The liquidators added that the funds were never designed to withstand even a "slight downtick" in the housing market.
