The Bear Stearns Companies Inc. reported lower second quarter earnings today.

Net income excluding a non-cash charge would have been US$486 million, down 10% from US$539 million for the second quarter of 2006. Second quarter results include the effect of a US$227 million non-cash charge related to the write-down of intangible assets, representing goodwill and specialist rights of Bear Wagner Specialists.

Net income for the second quarter of 2007, after the non-cash charge, was US$362 million. Net revenues for the 2007 second quarter were a record US$2.5 billion, flat from the second quarter in 2006.

“The diversity of our franchise is clearly demonstrated in the record net revenues generated this quarter,” said James Cayne, chairman and CEO of Bear Stearns, in news release. “The Global Clearing Services and Wealth Management segments reported record performance while results were also very strong from debt and equity underwriting, equity derivatives and leveraged finance. Internationally, we continue to grow aggressively, hiring talented people, broadening our product platform and reaching new clients in multiple geographies.”

Capital Markets net revenues for the second quarter were US$1.9 billion, down 10% from a record high of US$2.1 billion for the quarter ended May 31, 2006. Institutional Equities net revenues were US$543 million, a slight decline from US$560 million for the second quarter of 2006. Fixed Income net revenues were US$962 million, down 21% from record revenues of US$1.2 billion recorded in the second quarter of 2006. Investment Banking net revenues were US$357 million, up 28% from the US$278 million in the 2006 second quarter.

Global Clearing Services net revenues were a record setting US$317 million for the second quarter of 2007, up 10% from US$287 million in the year-ago quarter.

Wealth Management net revenues for the quarter reached a record US$341 million, up 123% from US$153 million in the second quarter of 2006.

Compensation as a percentage of net revenues was 49.0% in the second quarter. Non-compensation expenses were US$727 million for the quarter, up 63% from US$445 million in the 2006 second quarter. The increase in non-compensation related expenses was largely due to the US$227 million non-cash charge. Excluding this non-cash charge, non-compensation expenses would have been US$509 million, up 14%.