$2… unbelievable. What is there that’s even worth keeping though? I wonder who’s next.
Joey, you seriously still think this deal will not go through? It has been accepted by the Fed, and many other parties. I fear the angry posts you will have once you fully accept that the Fed basically tried so hard to bail out a major US bank. Which ultimately lead to them being sold for $2/share.
Ok, what am I missing here? How is this a good thing?
adehbone Wrote: ------------------------------------------------------- > Joey, you seriously still think this deal will not > go through? It has been accepted by the Fed, and > many other parties. > > I fear the angry posts you will have once you > fully accept that the Fed basically tried so hard > to bail out a major US bank. Which ultimately lead > to them being sold for $2/share. So sell them to me at $3. I seriously think that enough that I’ll put up the cash.
Joey, in addition to the three bucks a share you are going to have to serve as the counterparty on massive amounts of trades. isn’t that the rub?
This is a disaster…the building alone is worth >$1bn! The ripple on this one is going to be extremely ugly. Mark everyone else to that market…ugh!
All of this makes me sick to my stomach. I think I might call in sick tomorrow. Lehman is going to get crushed.
The NYT says that alongwith talks with potential bidders, BSC was preparing a bankruptcy filing as plan B. Also, The Fed will “protect” JPM from certain liabilities on BSC’s balance sheet. Its quite obvious that BSC is worth less than $0 a share and the Fed is bailing them out to prevent a large scale financial system collapse! http://www.nytimes.com/2008/03/16/business/16cnd-bear.html?em&ex=1205812800&en=419ecfcc4d69bda6&ei=5087
Back when I was in mortgage banking, Bear had a reputation for purchasing loans with aggressive underwriting guidelines. One subprime shop called Southstar–no longer in business by the way–offered 80/20 financing with the first mortgage being a pay-option ARM. A 100% CLTV with a neg-am first was a rarity. Most other lenders like Countrywide only went up to 90 or 95% CLTV. Who was the purchaser of this product? Bear Stearns. Lehman was also pretty aggressive via it’s Aurora lending division. On the one hand it seems amazing to see this happen. But the amazement is not derived from any kind of surprise; it’s just more the magnitude of seeing stuff like this happen before your own eyes.
lig Wrote: ------------------------------------------------------- > Joey, in addition to the three bucks a share you > are going to have to serve as the counterparty on > massive amounts of trades. isn’t that the rub? The Fed will handle that for me.
This is seriously ridiculous. $2? Come on. This is going to get messy. I have a buddy that is a broker and his dad was a broker for SB before he retired. His dad actively trades options through him. I had lunch with him Fri and he told me he went long Bear 30 calls that morning. I said “hey you should throw a couple puts in there, you know just to hedge a bit, you might be surprised.” He said the Mar at the money puts were extremely pricy otherwise they probably would. I made a vega crack and we went back to work. I hope he picked them up. Either way I think he owes me lunch. Of course we may be down 600 by lunchtime tomorrow so it will probably have to wait. Wow, imagine if a week or so ago you actually got yourself a handful of the 60 puts just looking for a few bucks? Damn.
think of the poor souls selling puts… i’m sure some fancy computer program invented by some nobel peace price winner told them that the puts were cheap.
Yeah this is insane…I didn’t think that this was possible and I definitely learned a lesson about grabbing falling knives. This is surreal… Does anyone here work at Bear or know someone close to them that works at Bear? I have a friend that works there but I’m not close enough to the point where I can call him and talk to him about it. I’m guessing Bear employees will find out their fate when they walk in tomorrow? Or will they continue their job duties and find out in a few weeks/months if their units are being shut down, etc.
If the Fed is bailing out $30B in backup guarantees, they could have added another $2B and sold Bear for $16 or so, which looks like a face saving number. $2 a share is nothing and surely going to impact others on the street. I really don’t understand why they could not have added another $2B.
Where do you think that $2B would come from? The answer is either tax payers or JPM shareholders. As I fall into both categories, I can tell you that I’m not interested in giving any cash to BSC shareholders, let alone $2B.
It’s going to be an interesting week (read: tomorrow) as the market discounts the “usual suspects” of this crisis against this $2 price. I hate the part of the roller coaster where you can feel your stomach about to be shoved into your throat.
hopefully the bear employees can get back on their feet before long. however, just a couple of thoughts. but first, does anyone think that the deal *doesn’t* go through? bear’s own employees hold about 33% stake in the company, and at $2 a share, that’s simply embarrassing. also, anyone think another bank will step in and top JPM’s offer? (personally, i don’t think so)
JoeyDVivre Wrote: > So sell them to me at $3. I seriously think that > enough that I’ll put up the cash. Some folks seem to be taking you up on that: pre-market quotes: BSC $3.1… -89.6% ______________ JPM $35.10…-3.94% C $18.90…-4.45% LEH $32.47…-17.3% MER $41.05…-5.65% GS $115.47…-7.26%
I’m still offering $3…