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Extradry Martini

Bear Stearns Goes "pop"

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Bear Stearns Agrees to Secured Loan Facility with JPMorgan Chas

2008-03-14 09:21 (New York)

NEW YORK--(BUSINESS WIRE)--March 14, 2008

The Bear Stearns Companies Inc. announced today it reached an

agreement with JPMorgan Chase & Co. (JPMC) to provide a secured loan

facility for an initial period of up to 28 days allowing Bear Stearns

to access liquidity as needed. Bear Stearns also announced that it is

talking with JPMorgan Chase & Co. regarding permanent financing or

other alternatives.

Alan Schwartz, president and chief executive officer of The Bear

Stearns Companies Inc., said, "Bear Stearns has been the subject of a

multitude of market rumors regarding our liquidity. We have tried to

confront and dispel these rumors and parse fact from fiction.

Nevertheless, amidst this market chatter, our liquidity position in

the last 24 hours had significantly deteriorated. We took this

important step to restore confidence in us in the marketplace,

strengthen our liquidity and allow us to continue normal operations."

The company can make no assurance that any strategic alternatives

will be successfully completed.

About Bear Stearns

Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is a

leading financial services firm serving governments, corporations,

institutions and individuals worldwide. The Company's core business

lines include institutional equities, fixed income, investment

banking, global clearing services, asset management, and private

client services. Headquartered in New York City, the Company has

approximately 14,000 employees worldwide. For additional information

about Bear Stearns, please visit the firm's website at

www.bearstearns.com.

Certain statements contained in this discussion are

"forward-looking statements" within the meaning of the Private

Securities Litigation Reform Act of 1995. Such forward-looking

statements are subject to risks and uncertainties, which could cause

actual results to differ materially from those discussed in the

forward-looking statements. For a discussion of the risks and

uncertainties that may affect the company's future results, please see

"Management's Discussion and Analysis of Financial Condition and

Results of Operations" and "Risk Management" in the company's 2008

Annual Report on Form 10-K which has been filed with the Securities

and Exchange Commission.

CONTACT:

The Bear Stearns Companies Inc.

Elizabeth Ventura, 212-272-9251

eventura@bear.com

or

Russell Sherman, 212-272-5219

russellsherman@bear.com

-0- Mar/14/2008 13:21 GMT

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What, Bear Stearns nationalised?

:blink:

No on life Support

You know Vultures circiling overhead

Time to get the Nike Airs on, get a flask n' get down there and get yer money oot Pronto Mama Rapido.

Edited by Timil

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About Bear Stearns

Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is a

leading financial services firm serving governments, corporations,

institutions and individuals worldwide. The Company's core business

lines include institutional equities, fixed income, investment

banking, global clearing services, asset management, and private

client services. Headquartered in New York City, the Company has

approximately 14,000 employees worldwide. For additional information

about Bear Stearns, please visit the firm's website at

www.bearstearns.com.

Well that bit above is right, but not in the way they meant. :(

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I guess Mr Methodius called it right:

http://www.housepricecrash.co.uk/forum/ind...p;#entry1011979

I believe Bear Stearns is close to failure. It's 1 year CDS was quoted at over 1000 last night. Its ability to raise money has been destroyed. Without the funding to operate it is doomed.

Presumably this is the significant detrioration in liquidity over the last 24 hours that was referred to?

Peter.

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Any Fed or Government involvement do you know?

Natch

JP Morgan and Fed provide funding for Bear Stearns

JP Morgan Chase said on Friday it would provide an unspecified amount of funding for Bear Stearns together with the Federal Reserve Bank of New York.

The move comes on the back of growing concerns in the market that Bear Stearns was facing significant liquidity constraints. The concerns have hammered Bear Stearns shares, which were down nearly 20 per cent this week alone amid highly volatile trading.

EDITOR’S CHOICE

FTSE rallies as bid talk lends support - Mar-14

Bourses climb as steelmakers shine - Mar-14

Dollar drops to fresh lows - Mar-14

Asian markets fail to hold early gains - Mar-14

Gold renews challenge on $1,000 level - Mar-13

In depth: Credit squeeze - Feb-26

”JP Morgan Chase announced that, in conjunction with the Federal Reserve Bank of New York, it has agreed to provide secured funding to Bear Stearns, as necessary, for an initial period of up to 28 days,” JP Morgan said in a statement.

”Through its discount sindow, the Fed will provide non-recourse, back-to-back financing to JPMorgan Chase. Accordingly, JPMorgan Chase does not believe this transaction exposes its shareholders to any material risk. JPMorgan Chase is working closely with Bear Stearns on securing permanent financing or other alternatives for the company.”

Shares of Bear Stearns jumped as much as 10 per cent to $63 in premarket action following the news.

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Everything going so well at 1.25 before they released this statment.

Bear down 7-10% from open and all other markets loosing big time as well.

Northern Rock American style

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Talk about strange coincidences: the last time I had a Friday off work was in mid September when NR went kapoot, and now today...

I'll let you know for next time!

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Me either. It's a primary dealer, they (should) have the same rules for dealing with the Fed as JPMC.

Anyone?? Or is it just smoke and mirrors...

They are not a bank, so they do not have access to the new facilities I believe. As a primary dealer, they can repo government bonds with the Fed, but that's not much help if they don't have any...

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never listen to a word these people say - they tell lies.

Alan Schwartz, Bear Stearns CEO on wednesday.

http://www.cnbc.com/id/15840232?video=682914860&play=1

Actually, it's a bit circular. You can have no liquidity problems one day and the next, because people think you do, you go bust becuase no one wants to lend to you. Very similar to NR...

Edited by Extradry Martini

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Is it too late in the day to start a 'black friday' thread? I assume Bear Sterns is why the DJI chart looks as though the man drawing the line just fell down a well.

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This makes me want to puke. More tax payer bailouts for investment bankers.

Northern Rock was bad enough, but Applegarth made a pittance in comparison to the amount of money made by the management of Bear Stearns and their ilk and now the Federal Reserve is blowing off any constrains on inflation in order to save their bacon.

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not only are they lacking funding like northern rock but their investors are withdrawing their money out of their funds - there is essentially a run on the bank.

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Is it too late in the day to start a 'black friday' thread? I assume Bear Sterns is why the DJI chart looks as though the man drawing the line just fell down a well.

Capitulation...

DOW JONES INDUSTRIAL AVERAGE INDEX

Real-time: 10:00AM ET

11,879.69

-230.55 (-1.90%)

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