Fed Races to Rescue Bear Stearns

[rudeboyja]

I had a put play on Friday and made major $$$$$$$$$$$$$

 

[75th]

I do feel really bad for a lot of the employees. Seeing your stock, and therefore maybe 5-10% of their 401(k)s drop by $60 to $2 in the span of 24 hours must suck balls.

 

[Lumberg]

Seriously, the magnitude of this is astounding. The 5th largest brokerage firm in the US being sold for less than 1% of what it was worth 2 weeks ago.

Didn't someone mention LCTM at the beginning of this thread?

You tell me if this is another LCTM after I present to you the following data:

LCTM: Fed-brokered buyout to the tune of $3.6bn, all from the consortium of banks recruited by the Fed. The Fed pays for the electricity and maybe some food for the meeting.

BSC: Fed-brokered buyout to the tune of $236m, but with the Fed assuming up to $30bn of risk as a "please-thankyou" to JPM.

So, the question is,

Did BSC juice for the role of LCTM in the latest Fed-facilitated emergency buyout?

 

[75th]

So, the question is,

Did BSC juice for the role of LCTM in the latest Fed-facilitated emergency buyout?

Pics?

 

[anthrax]

In the end the tax payer is paying for the incompetence of those BMW driving people

Tomorrow is Lehman's results.... another rocking day in sight and major lay off in the next few weeks/months

 

[75th]

In the end the tax payer is paying for the incompetence of those BMW driving people

Tomorrow is Lehman's results.... another rocking day in sight and major lay off in the next few weeks/months

Ya, I think it's safe to say Lehmans is getting bent over.

 

[75th]

Aaaaaaaaaand here come the lawsuits. I think this is the most rediculous out of the 4 that have been filed in the past 24 hours.

Lawsuit filed against Bear Stearns over employee stock plan

By Chad Bray
Last update: 6:18 p.m. EDT March 17, 2008Print E-mail RSS Disable Live Quotes

NEW YORK (MarketWatch) -- A second lawsuit was filed Monday against Bear Stearns Cos. (BSC:The Bear Stearns Companies Inc BSC 4.81, -25.19, -84.0%) on behalf of the participants in its employee stock-ownership plan in the wake of an agreement to sell the investment bank to JPMorgan Chase & Co. (JPM) at a fire-sale price of $2 a share.

The lawsuit, filed in U.S. District Court in Manhattan, alleges that Bear Stearns and its executives breached their fiduciary duties to plan participants by allowing their retirement savings to be invested in the company's stock despite knowing such an investment was imprudent.

The complaint alleges the investment bank failed to disclose material adverse facts regarding its financial well-being, the potential consequences of its "substantial entrenchment in the subprime mortgage market," that the firm's stock price was artificially inflated and heavy investment of retirement savings in company stock would inevitably result in significant losses to the plan and its participants.

A similar lawsuit was filed earlier Monday in U.S. District Court in Manhattan on behalf of Bear Stearns shareholders.

Facing a liquidity crisis that nearly forced its collapse, Bear Stearns agreed to be sold to JPMorgan Chase for $2 a share, or about $236 million, after seeking emergency financing from the Federal Reserve and JPMorgan Chase.

Bear Stearns shares plunged $25.19, or 83.9%, on Monday to $4.81. In recent late trading, shares are down to $4.70.

A Bear Stearns spokesman didn't immediately return a phone call seeking comment late Monday.

 

[chazk]

The company share holders got screwed.
Instead of getting govt funds like the other banks have already done.
BS were forced to just dump the company over to JP morgan. I bet the ceo's of BS will walk with multimillion dollar buy out retirement packages while everyone else that held shares got fucked.Meanwhile the whole deal happened over the weekend after hours

This is exactly what the big companies want they love economic failure as long as they come out on top .They want to have the rival comps go under so they can make a fortune when the recession is over.
Just as the large companies did after great depression they bought up rival companies for nothing ,stole large sums of land for pennies and bought entire cities for next to dirt.
One mans recession is a big companies chance to buy everything in site for a song and a dance when the shit hits rock bottom.

 

[75th]

The company share holders got screwed.
Instead of getting govt funds like the other banks have already done.
BS were forced to just dump the company over to JP morgan. I bet the ceo's of BS will walk with multimillion dollar buy out retirement packages while everyone else that held shares got fucked.Meanwhile the whole deal happened over the weekend after hours

This is exactly what the big companies want the love economic failure as long as they come out on top .They want to have the rival comps go under so they can make a fortune when the recession is over.
Just as the large companies did after great depression they bought up rival companies for nothing ,stole large sums of land for pennies and bought entire cities for next to dirt.
One mans recession is a big companies chance to buy everything in site for a song and a dance when the shit hit rock bottom.

The Bear execs will get no golden parachute packages unless JPMorgan wants to hand them out.

Knowing Jamie Dimon, that wont happen.

 

[chazk]

The Bear execs will get no golden parachute packages unless JPMorgan wants to hand them out.

Knowing Jamie Dimon, that wont happen.

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 walked with 15 million in cash a 38 million in comp package
then he stepped down less then two weeks later
http://www.thestreet.com/s/bear-stearns-ceo-departs/newsanalysis/banking/10397680.html?puc=_tscrss

crooked fuckers.