August 8, 2007 (LPAC)--Desperate to reassure Wall Street and its clients that it is not collapsing, on Friday, August 3, Bear Stearns CEO Jim Cayne and its Chief Financial Officer Sam Molinaro held a conference call to update Wall Street analysts and investors on the bank's financial situation. According to today's Houston Chronicle Cayne and Molinaro said that the problems at Bear Stearns' hedge funds were isolated incidents and did not reflect on the company as a whole. This is something like saying that the iceberg with which the Titanic collided was an isolated incident which had no impact on the ship.

According to www.youtube.com, CFO Molinaro told investors on the conference call that "revenues were under significant pressure in July," that Bear Stearns "won't buy back stocks," it "needs capital to weather turmoil," that the "fixed income market turmoil is the worst in 22 years" and that "we're in the early phase of investor lawsuits."

This week, according to the Houston Chronicle, Bear Stearns began sending letters to clients "reassuring them the firm was financially sound, in an effort to keep people from withdrawing their business." The Chronicle reports that "there have been fears that major companies would lose faith in Bear Stearns, pull their business, and create a run on the bank."

According to Associated Press, which obtained a copy of the client letter, Bear Stearns has also provided its employees with a package of talking points. They are being told to describe the recent management changes as being "appropriate" and to say the company has "ample liquidity" to support its businesses.

As Lyndon LaRouche pointed out, the name Bear Stearns is coming to signify a naked rear end.