Bear Stearns will continue its energy-trading venture with Calpine, despite concerns over Calpine's financial health, Bear Sterns asserts. "We are continuing to move ahead with launching the joint venture," said Bear Stern's Chief Financial Officer Samuel Molinaro in a conference call with investors.

Bear Stearns entered into its agreement with Calpine well aware that the company was debt-laden, said a member of senior management at an energy company. However, Bear Stearns needed to provide