Bear Stearns source says no truth to liquidity talk

NEW YORK, March 11 (Reuters) - A Bear Stearns Cos BSC.N insider said on Tuesday there was no truth to recurring market speculation that the fifth-largest U.S. investment bank faces a cash crunch, rumors that sent Bear's stock reeling for the second straight day.

"There's no truth to the rumors in the marketplace," said a person inside the bank who asked not to be identified. "Bear Stearns put out a press release (Monday) with CEO Alan Schwartz saying the balance sheet, liquidity and capital remained strong. Nothing has changed."

Bear Stearns declined to comment.

The stock was down 4.46 percent at $59.52 in afternoon trading on the New York Stock Exchange. (Reporting by Joseph A. Giannone)