[benzoil]

$this->bbcode_second_pass_quote('Cid_Yama', 'C')NBC is showing Bear Stearns employees leaving the building with their personal belongings in boxes. Looks just like a repeat of Enron.

[pup55]

$this->bbcode_second_pass_quote('', 'D')o you have stocks in BSC, pup55?

[SteinarN]

Hmmm, I'm not sure banks are the right stuff to be holding stocks or funds in these days.

[dinopello]

$this->bbcode_second_pass_quote('SteinarN', 'H')mmm, I'm not sure banks are the right stuff to be holding stocks or funds in these days.

[SteinarN]

$this->bbcode_second_pass_quote('dinopello', '')$this->bbcode_second_pass_quote('SteinarN', 'H')mmm, I'm not sure banks are the right stuff to be holding stocks or funds in these days.

[Cid_Yama]

Lehman Brothers now down 33%. In 2 1/2 hrs they have lost a third of their value. Just like Bear Stearns on Friday. So now they need someone to 'aquire' Lehman, or TSHTF.

[heroineworshipper]

Investment food chain:

1) Capitalists
2) Bankers
3) Bond owners
4) Preferred stock owners
5) Regular stock owners
6) Workers

Savers always lose & once again, they did.

[pup55]

Yahoo News

$this->bbcode_second_pass_quote('', '"')We've been contacted by large individual investors and institutional investors," said Jeffrey Nobel, a partner at class-action law firm Schatz Nobel Izard. "Suffice to say, we are certainly looking very carefully at it."

[dinopello]

$this->bbcode_second_pass_quote('heroineworshipper', 'I')nvestment food chain:

1) Capitalists
2) Bankers
3) Bond owners
4) Preferred stock owners
5) Regular stock owners
6) Workers

Savers always lose & once again, they did.

[Cid_Yama]

You can now add Lehman to your list.

They've now lost half their value with hours left in the trading day.

[Last_Laff]

$this->bbcode_second_pass_quote('Bas', '')$this->bbcode_second_pass_quote('Last_Laff', 'B')as, how are you watching this and or where?

[Dreamtwister]

So does this mean that JP Morgan can just strike all of those Bear Sterns CDS's off of it's books? I don't really get derivitaves. Can they do that if they are now both party and counterparty?

[Dreamtwister]

So does this mean that JP Morgan can just strike all of those Bear Sterns CDS's off of it's books? I don't really get derivitaves. Can they do that if they are now both party and counterparty?

[Ferretlover]

Apparently there are rumblings that the Bears stockholders are not thinking too kindly of JPMorgan's offer, may reject it and take chance on the bankruptcy courts.
According to CNBC, if they don't take the offer, then JPM gets the building anyway.

[emersonbiggins]

Wow, just wow.

JPM has $91.7 TRILLION of derivatives exposure, as of last September.
They were/are leveraged 74:1.

Avert thine eyes from this derivatives exposure spreadsheet

[pup55]

I think not. It means that they inherit the instruments. The $30B from the government is just a little insurance to sweeten the deal.

Despite all of the whining, there is the idea going around that only 5% or so of these loans are nonperforming right now. Maybe the figure is closer to 15%, but by taking this mess over, it means that they are getting a pretty big portfolio of securities, some of which may actually be worth something. It is not much risk to get all this for 4 cents on the dollar or whatever.

So once they sort the whole thing out, even if half of the instruments are performing, they are still way ahead. If not, they tap into the fed's line of credit, and they still win.

JPM is up almost 9% as of 3:30ET so the market confirms this might be the deal of the decade for JPM.

[Ferretlover]

Half of Bear's 14,000 Employees May Lose Their Jobs
JPMorgan Chase, which has agreed to buy Bear Stearns for just $240 million, expects to cut about half of Bear's 14,000 employees, CNBC has learned. ...

Soon to be unemployed?

[pup55]

$this->bbcode_second_pass_quote('', 'J')PMorgan was happy to buy most of Bear but wanted no part of its portfolio of complicated mortgage and other investments. Paulson and Bernanke were personally involved in the talks and told JPMorgan executives that they could not buy just the most valuable pieces of Bear Stearns because there were global financial issues at stake.

Fed leaders, eager for the transaction to happen and wary of anything that would result in a fire sale of those risky assets, agreed to finance those assets and then sell them in an orderly way. In effect, the Fed has taken on the risk that these assets might be less valuable than anyone currently realizes.

[benzoil]

$this->bbcode_second_pass_quote('pup55', '')$this->bbcode_second_pass_quote('', 'J')PMorgan was happy to buy most of Bear but wanted no part of its portfolio of complicated mortgage and other investments. Paulson and Bernanke were personally involved in the talks and told JPMorgan executives that they could not buy just the most valuable pieces of Bear Stearns because there were global financial issues at stake.

Fed leaders, eager for the transaction to happen and wary of anything that would result in a fire sale of those risky assets, agreed to finance those assets and then sell them in an orderly way. In effect, the Fed has taken on the risk that these assets might be less valuable than anyone currently realizes.

[efarmer]

So in the opinion of you more market savy posters,
what is the chance of a B of A or citi going bust this
year on a 1 in 10?





Wow, when the Bull eats the Bear to prepare
for hibernation it's time for a jackass like me
to hoof it on down the road.