Posted on 03/16/2008 4:35:03 PM PDT by Toddsterpatriot
This came out less than a week ago.
Snip
Bear Stearns, the second-biggest underwriter of mortgage- backed bonds, tumbled $7.78, or 11 percent, to $62.30, its steepest drop since October 1987.
``There’s an insolvency rumor and concerns on liquidity, that they just have no cash,’’ said Michael Mainwald, head of equity trading at Lek Securities Corp. in New York.
There is no truth to the rumors, Russell Sherman, a spokesman for New York-based Bear Stearns, said in an interview. Greenberg, the former Bear Stearns chief executive officer and current board member, told CNBC that liquidity rumors are ``totally ridiculous.’’
Snip
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLfPUBmFk.bA
None of the current candidates have any economic sense. If they did they would not be running for president right now. Wonder why the field was so thin of really good candidates? Because the person who wins will be the next Hoover.
Funny what happens when the off-the-balance-sheet obligations get added back to the balance sheet. The stock price drops from $27 to $2.
Good thing is that the other banks will follow suit, admit it has no value and get that junk written off once and for all.
There is no truth to the rumors, Russell Sherman, a spokesman for New York-based Bear Stearns, said in an interview. Greenberg, the former Bear Stearns chief executive officer and current board member, told CNBC that liquidity rumors are ``totally ridiculous.’’
Those comments are going to get someone some time in prison.
Hope everyone is happy that they laughed Ron Paul away.
Their money supply will only hold out as long as their ink supply, yep real comforting indeed.
Yeah...the govt. says inflation is ZERO right now...riiiiiiight!!!! Bought milk or cheese or gasoline lately!!!
I was going to go to my local coin dealer tomorrow and buy some gold, now the Fed has messed it up for me and has done an early .25% cut...on a Sunday!! Gold has spiked to $1017. now.
Maybe not. If they had 17 Billion then, as they claim, but they didn’t as of Friday, it’s not necessarily the case that a lie took place. They could EASILY have bled off $17B in a couple days from other firms demanding money and new firms refusing to issue credit needed to conduct business. A classic run on the bank.
the JPM holders seem to have hit a home run
I guess this fits the description of blood in the streets.
I didn't see that yet. They must be trying to get their overtime pay in.
Yes they know how to tax
Ron Paul is stillll an idiot!!
Those comments by the Bear spokesman partly (only partly) explain the cheapo $2 buyout price: JP Morgan - as the successor-in-interest of Bear - knows that it is buying a mega-class action securities lawsuit as part of the package, which it will have to settle.
So Bear investors - by suffering a loss that benefits JP Morgan’s bottom line - have already, in effect, prepaid their own gazillionare class-action lawyers.
Wonderfully efficient economy we have here.
I thought there was some kind of mistake in the reporting...I was anticipating the .75% cut on Tuesday...but a Sunday cut?!?!?!
If Lewis’s losses totaled $800mm on Friday’s drop of 40%, i.e., $45 to $27, and assuming his cost basis is, let’s say $110, then at $2 per share, his losses are approximately $1,040,963,855 on an investment of $1,060,240,964 and his holdings in JPM are worth $19,277,108.
If you are a Bear Stearns employee with 10,000 shares, your holdings have fallen from $1,700,000 at $170/share to $5,000.
Not good.
Bear CEO Schwarz is in deep doo-doo considering his statements early last week. He’s looking at jail time.
Can’t imagine that many higher-up employees didn’t see the writing on the wall and unloaded at least some of their stock. The smart ones may have kept a majority of it so it wasn’t so obvious they would draw sufficient attention to get prosecuted.
JPMorgan to Bear - TAKE IT OR LEAVE IT. Bernanke chimes in....better take it Mr.Swartz. Deal....done.
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