More on The Federal Reserve's St. Patrick's Day Massacre (The Bear Stearns Takeover)

RedState ^ | Mar. 29, 2008 7:16am | blackhedd

[Toddsterpatriot]

I've NEVER commented on the Federal Reserve's "general tax fund"

LOL!

Maybe we should discuss derivatives? Then you'd only show your ignorance on one topic at a time.

[Toddsterpatriot]

I wonder if he uses EPI?

[1rudeboy]

Personally, I’d like to see the “Bush has bought 10,000 acres in Venezuela [sic]” thing again. I wonder where he found that?

[Toddsterpatriot]

Was he the clown who posted that? Sounds more like something our favorite female would post.

[nicmarlo]

The people here who are “ignorant” are those who, due to inability to discuss issues honestly, make up things out of thin air and attribute them to the people they disagree with....and then call those people the ones who are stupid, ignorant, and other pejoratives.

You are as pathetic as your friends.

[nicmarlo]

I've NEVER commented on the Federal Reserve's "general tax fund" LOL!

Maybe we should discuss derivatives? Then you'd only show your ignorance on one topic at a time.

Better yet...why don't you discuss the "Federal Reserve's 'general tax fund'" with groanup. He's the one who's been posting about it....and claiming others have, as well. Discuss that, and the derivatives issue, with groanup....till you're blue in the face, as far as I'm concerned. Both of you would then be far less annoying and perhaps take your dishonesty and lies out on each other. LMAO!

[nicmarlo]

Interview with ex treasury secretary Paul O'Neill

Questions for Paul O'Neill
March 30, 2008

Q: Do you feel bitter about your service for the Bush administration?

A: No. I’m thankful I got fired when I did, so that I didn’t
have to be associated with what they subsequently did.

Q: Do you think it was appropriate for the Federal Reserve
to lend a helping hand to Bear Stearns and save a private
investment company from its own bad decisions?

A: I would say they didn’t save Bear Stearns. They saved
the financial system from a panic collapse. I reject the
notion that they helped Bear Stearns. Bear Stearns was
destroyed.

[nicmarlo]

According to a financial website, it's been suggested that CAlPERS, The California Public Employees' Retirement System, "got stiffed" for the Bear Stearns collapse. I don't know how else someone could interpret these figures.....unless, of course, CAlPERS divested itself of these shares before the collapse....

BSC exposure, as of year end June 2007

                      CalPERS: 2007 Annual Investment Report: 
                      Broker Fees and COMMISSIONS PAID REPORT

http://www.calpers.ca.gov/invest/investmentreport-2007/
investment_operations/bc.asp?report=broker_commission


           Partnership                        Shares              Commission
                                                            (Dollars in Thousands)
Bear Stearns & Company, Incorporated    1,292,125,920.00           839.35

Bear Stearns Asia, Limited                 20,587,600.00            23.22

Bear Stearns International Trading          2,988,208.00            99.31
 
Bear Stearns Securities Corporation     1,760,025,427.03         1,350.16

[groanup]

Looking at the numbers it seems that in BSC alone Calpers has invested 77 billion dollars. That would mean that Calpers had over 30% of its 250 billion fund invested in one stock - Bear Stearns. Then, according to you, that wasn't enough. Calpers wanted more so it invested in three other Bear companies.

Or, could it be nickie, that you are looking at a commission report? LOL!

[Toddsterpatriot]

Broker Fees and COMMISSIONS PAID REPORT

Nic is not an idiot.

Nic is not an idiot.

Nic is not an idiot.

LOL!

This is funnier than ex-Texan breathlessly posting that Bear insiders sold 27 million shares in February.

[Toddsterpatriot]

They traded 3,075,727,155 shares for $2,312,040 in commissions.

About .075 cents (That's 3/40th of a cent) per share. Pretty good rate.

[groanup]

Wait a minute. My math is wrong. In June of 07 BSC was worth about $150 per share. So Calpers had over 60% of its pension money in BSC and, apparently, a lot more in Bear’s subs. I don’t know what the subs were worth but I’ll bet you Calpers was approaching 100% BSC. That would mean Calpers is now wiped out. Too bad.

[groanup]

Good rate for Bear or Calpers? I know that business has been dog eat dog for about 15 years now, right?

[Toddsterpatriot]

Good rate for Bear or Calpers?

Calpers.

I know that business has been dog eat dog for about 15 years now, right?

At least.

[Toddsterpatriot]

Worse than that. They’re only 136 million shares outstanding. Calpers owned Bear many times over. LOL!

[nicmarlo]

Very interesting............

6.03.2007
The greater fool
http://wcvarones.blogspot.com/2007/06/greater-fool.html

Are you a teacher or other public employee?

Look what your masters are doing with your pension money. They lost a bunch of it buying tech stocks in the tech bubble, so now they're trying to make up for it by buying the worst mortgage securities:

Banks Sell 'Toxic Waste' CDOs to Calpers, Texas Teachers Fund
http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aW5vEJn3LpVw

8.03.2007
Where's CalPERS?
http://wcvarones.blogspot.com/2007/08/wheres-calpers.html

In June I noted that CalPERS was stupidly buying the riskiest tranches of asset-backed investments, so-called "toxic waste" CDOs. The idiots at CalPERS were swindled by banks like Bear Stearns and Citigroup, which wanted to get the toxic waste off their own books as quickly as possible.

With even the highest tranches now taking huge losses, the CalPERS toxic waste is probably nearly, if not totally, worthless.

So where is CalPERS spokesman Clark McKinley? No apologies to the employees whose retirement funds were squandered? No plans to sue the pants off of the banks? Step up, McKinley.

3.17.08
CalPERS holds less than $200 million in Bear Stearns bonds
http://www.pionline.com/apps/pbcs.dll/article?AID=/20080317/DAILY/848075852/1012/REG

...However, the pension fund owns 1% to 1.5% of Bear Stearns’ equity, which has plunged in value.

The Ten Largest Holding of CalPERS, the Biggest U.S. Investor
December 10, 2007

Can you name the biggest American investor? No, it's not Warren Buffett; as a matter of fact, it is not a person. It is CalPERS, the California Public Employees' Retirement System, which handles the retirement for well over a million California employees. It's total investments are now at about $254 billion, with investments in stocks, bonds, mutual funds, private equity, real estate, and venture capital.

CalPERS Stock List (Excel spreadsheets)

       Company                      Shares    Book Price     Book Value     Mkt Price*    Market Value* 

 BEAR STEARNS COS INC               637,400      41.50      26,450,986.08     140.08      89,286,992.00 
 BLACKROCK INC	                    295,600     129.29      38,219,117.51     139.17      41,138,652.00 
 JP MORGAN INTL DERIVATIVES LTD     555,000       5.77       3,202,197.60       7.99       4,434,450.00 
 JPMORGAN CHASE + CO             19,800,061      22.20     439,524,172.81      42.00     831,602,562.00 
 LEHMAN BROTHERS HLDGS INC        3,624,153      30.97     112,257,806.59      65.15     236,113,567.95 

SETTLEMENT NEWS: CalPERS, Hedge Fund Both Going After NYSE; Class-Action
Status Sought In Fight Over Allegations Of Trading Violations
June 25, 2007

CalPERS is seeking class-action certification in its lawsuit against seven New York Stock Exchange specialist firms, the latest instance of institutional investors going to court to ensure they get the best price for their trades....

...After reviewing dozens of transcripts from NYSE and SEC interviews and data from millions of trades, CalPERS attorneys are readying a class certification motion to be submitted to the federal court in New York by a June 29 deadline, Mr. McKinley added. Separately, Sea Carriers is also seeking class action status in its case against the NYSE, specialists, floor brokers and a list of firms that reads like a who's who on Wall Street, including Goldman Sachs Execution & Clearing, LP, Banc of America Securities LLC and Bear, Stearns & Co.

[nicmarlo]

March 18, 2008

Q: What’s the impact on CalPERS?

A: Last year CalPERS shares invested in Bear Stearns were worth $180 million. At the $2 buyout price, they’re now worth a paltry $1 million. In addition, CalPERS has roughly $200 million worth of Bear Stearns bonds, the value of which has been firmed up by the actions of the Fed and JPMorgan.

http://www.sacbee.com/103/story/793297.html

[nicmarlo]

The California Public Employees’ Retirement System (CalPERS) has posted its first negative returns in 2-1/2 years due to the subprime mortgage crisis and high oil prices, the fund announced last week. For the final quarter of 2007, CalPERS reported a total return of -0.5%, which equals a loss of $1.6 billion. The plan’s consultant, Wilshire Associates said that the fund’s investments underperformed their respective benchmarks by 0.9%. Overall, CalPERS saw returns of 10% for 2007, compared to 15.4% for 2006.

http://www.mmexecutive.com/more/editorial.html?pc=mutual_funds

[Toddsterpatriot]

Last year CalPERS shares invested in Bear Stearns were worth $180 million. At the $2 buyout price, they’re now worth a paltry $1 million.

Hmmmm......$1 million worth of stock at $2 a share would be 500,000 shares. If those 500,000 shares were worth $180 million last year, the stock must have hit $360 a share.

Too bad the highest it ever reached was a little less than $173.

[1rudeboy]

I must admit, I’m no longer getting this . . . has nic gone into “full kitchen sink mode,” or something else? There was a FReeper, who passed, who would flood a thread with text in order to “dilute” his earlier inconsistencies. I’m wondering if our friend is trying to do the same thing.