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It's sad to see a big name go especially since the company (or at least parts of it) has been around for so long. A lot of these companies take a century to build and one bad CEO to destroy.
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OMG! JPM bought Bear Stearn for $2 a share, and with Fed support! How fvcked up is Bear's balance sheet then?
For shareholders, it's the same as bankruptcy!
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So... $40 to $2 in the 3 days after the CEO had gone on TV and said everything was fine. If I was a shareholder...Comment
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The CEOs and Politicians always go on the air and tell the peasants everything is fine while Rome burns nothing new about that. Not that it is good or acceptable but in the end nothing will really happen to the people who do that so nothing will change.Try http://wordforge.net/index.php for discussion and debate.Comment
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Originally posted by Aeson
So... $40 to $2 in the 3 days after the CEO had gone on TV and said everything was fine. If I was a shareholder...Comment
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A bank boss can never publicly state that his company is in liquidity crisis, because the slightest hint will cause immediate bank runs. Every bank, regardless how well managed, will collapse if faced with enough runs. Bank is all about confidence, and its executives must exhibit confidence at all time in the public until after the fact.Comment
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We know this.Originally posted by One_more_turn
A bank boss can never publicly state that his company is in liquidity crisis, because the slightest hint will cause immediate bank runs. Every bank, regardless how well managed, will collapse if faced with enough runs. Bank is all about confidence, and its executives must exhibit confidence at all time in the public until after the fact.
We also know that anyone with nearly instantaneous 95% depreciation on their stock will still be angry as hell.Comment
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I'm sure at least two dozen starving attorneys have already printed and mailed out feeler letters to hook some people into a class action for that very reason.Originally posted by Aeson
We know this.
We also know that anyone with nearly instantaneous 95% depreciation on their stock will still be angry as hell.Comment
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That may be probable but it's also deranged. To demand that banker does not exhume confidence at all times is guaranteed to hurt stock prices far worse.DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.Comment
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Like a real estate agent. They might not have sold a property in 5 years but everything is always "great, very busy".Long time member @ Apolyton
Civilization player since the dawn of timeComment
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Oh of course, but it won't stop a half-dozen or so ignorant retirees from signing on so there's enough named plaintiffs to certify the class. Then you get a nice motion to dismiss and they're stuck with the bill. Good times.Originally posted by Colonâ„¢
That may be probable but it's also deranged. To demand that banker does not exhume confidence at all times is guaranteed to hurt stock prices far worse.Comment
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JPMorgan Chase Buys Bear Stearns for $270 Million (Update1)
By Yalman Onaran
March 16 (Bloomberg) -- JPMorgan Chase & Co. agreed to buy Bear Stearns Cos. for about $270 million after a run on the company ended 85 years of independence for Wall Street's fifth- largest securities firm and prompted a bailout by the Federal Reserve.
The deal values New York-based Bear Stearns, with 14,000 employees, at $2 a share, compared with $30 at the close on March 14. The central bank will provide financing for the transaction, including support for as much as $30 billion of Bear Stearns's ``less-liquid assets,'' the two companies said in a statement today.
JPMorgan Chief Executive Officer Jamie Dimon had the upper hand in negotiations after coming to the smaller firm's rescue last week with a cash infusion engineered by the Federal Reserve Bank of New York. Bear Stearns's CEO, Alan Schwartz, faced the prospect of bankruptcy as clients pulled $17 billion in two days last week and creditors stopped renewing loans.
``JPMorgan Chase stands behind Bear Stearns,'' Dimon said in the statement. ``Bear Stearns's clients and counterparties should feel secure that JPMorgan is guaranteeing Bear Stearns's counterparty risk. We welcome their clients, counterparties and employees to our firm, and we are glad to be their partner.''
Bear Stearns's sale to JPMorgan caps an eight-month slide in the company's fortunes that began last July with the collapse of two of its hedge funds. Those failures sparked a wider market concern that called into doubt the value of any asset linked to the mortgage market, Bear Stearns's biggest business.
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DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.Comment
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JHC... The WSJ was talking $20 per share just this afternoon...
Wow, they didn't mess around.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Now I'm no expert in Wall Street takeovers, but I imagine the conversation went something like this:
JPM: Who's your daddy? Who's your daddy you dirty little b***h?
BS: You're my daddy JP...
JPM: Who's the dirty little whore? Who's the worthless little b***h?
BS: I am, daddy.
JPM: $2 a share?
BS: Deal.Comment
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Yeh...
Bear Stearns's profit exceeded $2 billion in 2006, yet the price JPMorgan is paying is about one quarter the value of the securities firm's headquarters building in midtown Manhattan. The 1.2 million-square-foot, 45-story structure built in 2001 is worth about $1.2 billion, based on the average $1,000 per- square-foot that comparable office space in the city is currently fetching.
The bright side is that we can be somewhat assured JPM's financial credibility won't get hurt.DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.Comment
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