Subprime and alternative-A mortgage concerns appear largely responsible for a double-digit percentage decline in net income reported by the Bear Stearns Cos. in its latest fiscal quarter.The Wall Street firm saw approximately a 33% drop in net income to $362 million for the second quarter (ending May 31) vs. that of the same period a year earlier. An extraordinary noncash charge was partly responsible, but even with that item removed, Bear saw about a 10% slide in net income to $486 million from that of the second quarter of 2006. That decrease appears to be largely attributable to a 21% falloff in fixed-income revenue, to approximately $962 million, from that of a year earlier. The revenue from other major Bear business lines detailed in the company's earnings release generated lesser percentage declines or gains, the company said. An increase in expenses was also seen during the quarter. Wall Street firms were largely expected to be insulated from the subprime market's woes due to their diversification. Bear Stearns can be found online at http://www.bearstearns.com.

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