Jump to content
House Price Crash Forum
Sign in to follow this  
Matt Bear

Bear Stearns $2

Recommended Posts

Guest Charlie The Tramp

You will see more of these takeovers.

At the end of the day creating even bigger and more powerful Institutions. ;)

Share this post


Link to post
Share on other sites

Of course it's a paper deal, so quite what the final value is remains to be seen.

The value confirms that BS were/are truly stuffed without creating an immediate financial meltdown. I'm sure other banks will be under pressure now though. It's only a matter of time.

Share this post


Link to post
Share on other sites

http://ap.google.com/article/ALeqM5g60rTo1...dzhfqgD8VEQJNG0

"Many of Bear Stearns' 14,000 employees were phoned Sunday and told to show up to work at 7:30 a.m. EST, the person said.

The Journal also reported that if a deal with JPMorgan were to fall apart, Bear could conceivably file for bankruptcy late Sunday before Asian financial markets opened."

Share this post


Link to post
Share on other sites

Good Lord, it's all happening...... Bear Stearns valued at $2 a share, the Fed cuts discount rate by .25% on a Sunday..... I don't want to go to bed tonight, this is all far too interesting.

Share this post


Link to post
Share on other sites

From the topic article.

"Based on the closing price of March 15, 2008, the transaction would have a value of approximately $2 per share."

Et tu, Brute?

History never repeats itself; but it often rhymes

"The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well."

What did the Romans ever do for us ?

Edited by SithClone7

Share this post


Link to post
Share on other sites

Save a thought for poor ex CEO Mr Cayne who had stock worth 400 million last week and about 200 million on Friday. Today his 5pct holding is worth less than $20 million. He should have paid more attention to risk management.

Share this post


Link to post
Share on other sites
Guest vicmac64
Save a thought for poor ex CEO Mr Cayne who had stock worth 400 million last week and about 200 million on Friday. Today his 5pct holding is worth less than $20 million. He should have paid more attention to risk management.

my cayne should lose all personal assets and go to jail

Share this post


Link to post
Share on other sites

So they were trading in the market 2 days ago at $60 and have just been sold for $2.

Someone's been telling porkies.

Share this post


Link to post
Share on other sites
Guest Charlie The Tramp
They are trying to save the system, but they can't.

Would that be the US or Global system ? :unsure:

Share this post


Link to post
Share on other sites

USA Today

NEW YORK (AP) — JPMorgan Chase said Sunday it will acquire rival Bear Stearns in a deal valued at $236.2 million, a stunning collapse for one of the world's largest and most venerable investment banks.

JPMorgan Chase & Co. said the $2 a share, all-stock deal has received the required approvals from the federal government and the Federal Reserve. Bear Stearns shares close Friday at $30 a share.

The Fed will provide special financing to JPMorgan Chase for the deal, JPMorgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.

At almost the same time as the deal for control of Bear Stearns was announced, the Federal Reserve said it approved a cut in its lending rate to banks to 3.25% from 3.50% and created another lending facility for big investment banks. The central bank's official meeting is on Tuesday. Before the emergency move to lower the discount rate, which is the rate at which banks lend each other money, the Fed was widely expected to again cut its headline rate by as much as a full point to 2%.

The announcement from both the Fed and JPMorgan comes ahead of what some analysts expected to be a brutal day for global stocks. Already, before the announcements, New Zealand's markets opened drastically lower — then began to recover after the deal was unveiled.

A collapse of Bear Stearns could have created a further crisis of confidence in world financial markets amid a deepening credit crunch. JPMorgan's acquisition of Bear Stearns represents roughly 1% of what the investment bank was worth just 16 days ago.

The deal represented a 93.3% discount to Bear Stearns' market capitalization as of Friday, and roughly a 98.8% discount to its book value as of Feb. 29.

"The past week has been an incredibly difficult time for Bear Stearns," said Bear Stearns Chief Executive Alan Schwartz in a statement. "This represents the best outcome for all of our constituencies based upon the current circumstances."

Share this post


Link to post
Share on other sites

How come they didn't invite tenders, get Goldman in on the job for 6 months, and ask Dickie Branson if he was interested first? Seems awfully hasty......can't the EU object?

Share this post


Link to post
Share on other sites
How come they didn't invite tenders, get Goldman in on the job for 6 months, and ask Dickie Branson if he was interested first? Seems awfully hasty......can't the EU object?

I think they'd have liked a deal like that here, but Lloyds TSB wouldn't even but at any value.

I wonder what the back hander to JPM was to make (persuade) them to buy.

Share this post


Link to post
Share on other sites
Guest Shedfish

Presentation - read all about it here

JPM_Bear_20FINAL.pdf

just got out of the meeting. told them i was John Pierpont Morgan.

off to find a kebab, and a whore - tell her i'm Sting...

phew, what a night. my Micra wouldn't start...

JPM_Bear_20FINAL.pdf

Edited by Shedfish

Share this post


Link to post
Share on other sites

So the Fed bung JP Morgan Chase $30bn to cover Bear Stearns' losses. JP Morgan Chase say on the conference call that this prevents a firesale of Bear's "assets".

Oddly, I'm humming an old Wet Wet Wet song called "Hold Back The River".......

Share this post


Link to post
Share on other sites
Guest Shedfish
1. JPM is the largest derivative player and would have gone down had BSC started to liquidate "assets"

there's the nub, IMO

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.