Bear Stearns has signed up Rudolph Giuliani, the former New York mayor who reached world-wide fame for his leadership after the September 11 terrorist attacks, to help manage a new 'anti-terrorism' fund.

Giuliani Partners, the consulting firm Giuliani set up in 2002, is to help Bear Stearns make about $300m (€268m) of investments in industries associated with fighting terrorism. Bear will be providing capital from Bear Stearns Merchant Banking's second fund, which has a $1.5bn equity pool.