Comments on: Yet More Trouble For Bear? http://www.nakedcapitalism.com/2007/12/yet-more-trouble-for-bear.html Sun, 22 Nov 2009 20:56:49 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Richard Wilson http://www.nakedcapitalism.com/2007/12/yet-more-trouble-for-bear.html#comment-10250 Richard Wilson Sat, 28 Jun 2008 19:32:00 +0000 http://www.nakedcapitalism.com/2007/12/yet-more-trouble-for-bear/#comment-10250 I think most IBs are getting hit hard, most are cutting staff...only mid-market sector specific deals are getting done right now. I think most IBs are getting hit hard, most are cutting staff…only mid-market sector specific deals are getting done right now.

]]> By: ress http://www.nakedcapitalism.com/2007/12/yet-more-trouble-for-bear.html#comment-2581 ress Thu, 20 Dec 2007 19:37:00 +0000 http://www.nakedcapitalism.com/2007/12/yet-more-trouble-for-bear/#comment-2581 News reports have mentioned some IB's doing better during this crisis than others, mostly by selling the RMBS and CDO's to clients while betting against those securities at the same time.<br/>This sounds likely. Was it enough to offset all the losses? Seems unlikely. <br/>Now imagine your a hedgie and you use Bear exclusively to clear for you. They might not know all your strategies, but they would know all your positions. It would be like handing them the ball and asking them to slam dunk it on your head. <br/><br/>No way I would ever trust those guys not to spike you. And I felt that way even before this latest round of infidelities. They would see what you were holding, artificially put you out of margin compliance, and gut you. News reports have mentioned some IB’s doing better during this crisis than others, mostly by selling the RMBS and CDO’s to clients while betting against those securities at the same time.
This sounds likely. Was it enough to offset all the losses? Seems unlikely.
Now imagine your a hedgie and you use Bear exclusively to clear for you. They might not know all your strategies, but they would know all your positions. It would be like handing them the ball and asking them to slam dunk it on your head.

No way I would ever trust those guys not to spike you. And I felt that way even before this latest round of infidelities. They would see what you were holding, artificially put you out of margin compliance, and gut you.

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