Fed Races to Rescue Bear Stearns

[75th]

they knew what was comming last quater of 2007 , they already pulled the shoots before posting this years first quater losses.
http://www.signonsandiego.com/news/business/20071228-0939-bearstearns-cayne.html

crooked fuckers.

So? You see CEOs selling millions of dollars worth of their stock every year. For most of them, its more than half of their compensation package.

Although Im sure they knew things werent going great, it was the surprise lack of liquidity in the commercial market that did them in. Once the auctions were cancelled, they were dead in the water.

Imagine walking into your bank to make a withdrawl from your checking account...an account you KNOW you have money in and you KNOW that money is available whenever you need it. Imagine the teller at the bank said, "Yeah, we cant give that to you. Try back in a week."

 

[chazk]

So? You see CEOs selling millions of dollars worth of their stock every year. For most of them, its more than half of their compensation package.

Although Im sure they knew things werent going great, it was the surprise lack of liquidity in the commercial market that did them in. Once the auctions were cancelled, they were dead in the water.

Imagine walking into your bank to make a withdrawl from your checking account...an account you KNOW you have money in and you KNOW that money is available whenever you need it. Imagine the teller at the bank said, "Yeah, we cant give that to you. Try back in a week."

LOL that would suck but as long as it was not over 100k your fdic covered.

Yes ceo's sell millions of dollars of stock each year but do you see them sell 15 million ,get a comp package worked out then bail 10 days later? can you say inside trading. It is obvious they over inflated the stock back in november by posting " not to big of a loss" to keep stock hanging around 100$ a share had they come clean back then he would not have walked with 15million cash he would have walked with 4% of that obvious he has inside info and knew when to dump.

 

[Dial_tone]

Isn't Bear privately owned? I thought there were like 100 partners shared in profits. If so $23million isn't too bad.

 

[75th]

LOL that would suck but as long as it was not over 100k your fdic covered.

Yes ceo's sell millions of dollars of stock each year but do you see them sell 15 million ,get a comp package worked out then bail 10 days later? can you say inside trading. It is obvious they over inflated the stock back in november by posting " not to big of a loss" to keep stock hanging around 100$ a share had they come clean back then he would not have walked with 15million cash he would have walked with 4% of that obvious he has inside info and knew when to dump.

Definately a possibility, but again keep in mind the reason it happened to quickly was due to liquidity (or lack thereof).

Regarding FDIC, its not that your money is gone...its just that the bank wont give it to you. Thats what they were going through.

 

[75th]

Isn't Bear privately owned? I thought there were like 100 partners shared in profits. If so $23million isn't too bad.

Nah public company.

The second largest shareholder (has about 9% of the firm) is trying to block the JPMorgan deal. He lost $1billion over the past 4 days.

 

[chazk]

Isn't Bear privately owned? I thought there were like 100 partners shared in profits. If so $23million isn't too bad.

bear has a banking side also Custodial Trust Company is their bank department so that is fdic covered for people who make deposits

But yea I think a multimillion dollar walk away for a ceo from any company that is hundreds of millions of dollars in debt and lost millions of people investments and money Is a decent walk away

I think he should be rewarded with a blind fold and a firing squad
I mean give me a break 38 million comp package 23mil after taxes

 

[Dial_tone]

I'm thinking Goldman Sachs. They have 300 partners that share equity.

 

[chris350]

I fuckin missed playing the bear sterns crash

I was like a millisecond away from buying a shitload of OTM puts the day it closed at 55

fuck

Im still so fuckin pissed at myself for not shorting Citi back in october when it was around 50. I was so close to selling that stock short. I thought about shorting JP morgan back when it was at 45 it went down to like 38 last week but today it went back up b/c of this bear sterns thing but im still hesitant about shorting b/c im concerned about the Visa IPO since JPM will be so involved in it

 

[chris350]

JP Morgan is going to take over the country

i cannot beleive this happened
wtf?

i think JP morgan is going the way of Citi but who the hell knows anymore

 

[redsamurai]

I thought we were capitalists?.......free market? Why is the fed using taxpayer money to bail out a failed "business"??