Is this a good move for Morgan? Would they have bought Bear Stearns without prodding by the Fed?
that’s a good question. One thing for certain, there’s no way for them to do all the due diligence that would ordinarily be part of a deal like this. Unless the government immunizes them somehow, I don’t see how this doesn’t end up in court as a shareholder lawsuit.
There are pieces of Bear that Morgan can use. Don’t know if they’re worth $2 billion, tho.
It is a great move by Morgan, because as a part of this deal, it appears that the federal government will assume most of the risk of the deal, while JP Morgan will get the assets.