Bear Stearns reassured us again

Reuters reported this from CNBC.

NEW YORK (Reuters) – Bear Stearns Cos (BSC.N: Quote, Profile, Research) Chief Executive Alan Schwartz on Wednesday dismissed recurring speculation that the investment bank faces a cash crunch, saying it has hefty cash reserves that have remained little changed this year.

Schwartz, in a televised interview on CNBC, also said he is comfortable with the range of analysts’ earnings estimates for the fiscal first quarter ended Feb. 29. Results for the quarter are due next week.

“We don’t see any pressure on our liquidity, let alone a liquidity crisis,” he said.

Bear finished fiscal 2007 with $17 billion of cash sitting at the parent company level as a “liquidity cushion,” he said.

“That cushion has been virtually unchanged. We have $17 billion or so excess cash on the balance sheet,” he said.

Schwartz denied speculation that other brokers were turning down Bear’s credit on trades for fear of counter-party risk.

“There’s been a lot of volatility in the market, a lot of disruption. That’s causing some administrative pressure, getting trades settled. We’re in constant dialogue with all the major dealers, and I have not been made aware of anybody not taking our credit,” he said.

Now that the stock is below $35, will they claim simple Herstatt risk for the transaction?