Comments on: Scramble to Put a JP Morgan-Bear Deal Together

By: Anonymous

Anonymous — Mon, 17 Mar 2008 03:31:00 +0000

$2 a share (at 11:30 pm ET)! And it looks like JPM gets all the upside with no risk.

Wonderful! No wonder Wall Street loves Benny.

By: Anonymous

Anonymous — Sun, 16 Mar 2008 23:55:00 +0000

WSJ reports that JPM to buy BSC for $2/share.

By: ssternlight

ssternlight — Sun, 16 Mar 2008 23:53:00 +0000

I wonder if the Fed is signaling a smaller rate cut to the markets in exchange for sending your tired, your poor, huddled toxic paper yearning to breathe free — or at least a free lunch in any event.

By: S

Sun, 16 Mar 2008 23:43:00 +0000

wierd that the fed cut and new facility for the ibanks isnt being reported on the major newsights?

By: Anonymous

Anonymous — Sun, 16 Mar 2008 23:41:00 +0000

(and my math is probably botched, but a quick calculation indicates that Bear Stearns’ employees lost $200,000 each, on average, over the last seven days… not bad.)

By: S

Sun, 16 Mar 2008 23:34:00 +0000

Note the investment grade collateral commitment on the new NY Fed facility. The Fed is basically openeing its balance sheet fully. None of this is good despite what the reliefers will say.

By: Anonymous

Anonymous — Sun, 16 Mar 2008 23:28:00 +0000

So they expected $15-20 per share, and got $2? Ouch.

By: ssternlight

ssternlight — Sun, 16 Mar 2008 23:23:00 +0000

$2/share of stock and a $30B Fed guarantee. I can live with that even though it should be $0. Now we just have to see if the Fed has to cut a day early…

By: ssternlight

ssternlight — Sun, 16 Mar 2008 23:13:00 +0000

A bank holiday tomorrow would not be a bad idea to buy some time to sort this out. Having said that, I don’t think the shareholders should get anything. It is indeed crony capitalism when the fed has to assume losses — and there will be substantial losses no doubt — and the shareholders get a partial redemption up front.