Citic/Bear: trend setter

Bear Stearns set a precedent when it became the first big investment bank to shore up its capital by tapping a deep-pocketed foreign investor. Will it kick start another unfortunate trend by being the first bailed out bank to sweeten its terms? The group in October gave Citic, the Chinese securities firm, a convertible over a 6% stake in return for a $1bn cash injection. But Bear stock has fallen by one third since then. Citic now wants a 9% stake for its money, according to a person familiar wi...