Bear Stearns (Ticker: BSC) has become the latest Wall Street icon to be caught in a financial hurricane of relentless credit losses.

Over the past day financial liquidity at the investment banker had been nearly sapped and out of desperation, the company turned to the New York Federal Reserve Bank and rival bank JP Morgan Chase to help keep it afloat.

The bailout deal didn’t stop Bear’s stock price from an epic collapse either. Its shares ended Friday’s tumultuous trading session 47 percent lower. 

Even S&P got in on the fun.

The company, whose credit ratings have become a symbol of Johnny-come-lately financial analysis, announced that it was cutting both the credit and debt ratings on Bear Stearns. What a surprise.

For now, it appears that Bear is alive, but still far from being well.

According to reports, Bear obtained secured funding for 28 days. The additional capital will buy the company more time to persuade its customers and counterparties not to jump ship. What happens beyond Bear’s 28-day window is anybody’s guess. Lingering uncertainty and having such a short deadline isn’t sure to help matters.

Earlier in the week, Bear Stearns Asset Management announced that it was planning to launch the first actively managed exchange-traded fund (ETF). According to a company press release, the Bear Stearns Current Yield Fund (Ticker: YYY) is still set to launch on March 18^th, 2008.

“We are excited to be introducing the first actively managed ETF into the marketplace and the Bear Stearns Current Yield Fund is an innovative vehicle which allows investors to manage short-term fixed income,” said Jeff Lane, Chairman and CEO of Bear Stearns Asset Management.

Despite Bear’s positive spin, the internal financial chaos at the company is overshadowing, perhaps, even undermining, its own ability to make good news out of launching the first active ETF.  

Given Bear’s shaky financial condition, it’s hard to imagine investors having much confidence in its ability to manage an active ETF, much less its own corporate ship.

It wouldn’t surprise me if Bear’s active ETF launch is delayed – and even if it isn’t – I suspect that gathering substantial assets will be a very tough sell for the company. In a place as vain as Wall Street, image and perception often matter more than reality - and Bear's image has been badly tarnished.  

The greenlight to introduce the first actively managed ETF has become the industry’s latest coveted trophy, as companies attempt to position themselves as innovators in the burgeoning ETF marketplace. As things currently stand, all ETFs are linked to a single currency, commodity, or index.

Right now for Bear Stearns, plain survival probably outstrips any bragging rights the company would obtain from launching the first actively managed ETF.

As wise King Solomon correctly stated: “A live dog is better than a dead lion.”