Monday, March 17, 2008

Pop!

Sold for just $2 a share - the bank worth $140bn last week

A suitable end for one of the banks that caused this mess! 98% down in just a week. Similar to the depreciation on those Manchester 2 bed flats.

Posted by who stole my pension? @ 05:47 AM (1161 views)
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15 thoughts on “Pop!

  • yorkshireman says:

    At the beginning of last week, there was apparently no problem. When did BS (pun intended), know the situation ? I suspect a long while ago, yet they carried on. This is criminal.

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  • dohousescrashinthewoods says:

    Imagine if NatWest had been allowed to buy Northern Rock after all.
    For all the stick the US gets, (me included) you have to admit, they move hard, fast and are more realistic.

    BBC are talking about it now in the headlines – some US guy is making some sense. How refreshing.

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  • Scandinavian Pessimist says:

    This is huge. Expect markets to freefall this morning.

    Every casualty of the credit crunch will make the crunch even crunchier. Yum yum

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  • This is EXACTLY how NR should have been treated. With lightning speed and decisiveness.

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  • scandinavian pessimist says:

    This is huge. Expect markets to freefall this morning.

    Every casualty of the credit crunch will make the crunch even crunchier. Yum yum

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  • This is so reminiscent of the Dot Com era, companies loosing 98% of their value. Only companies with true value will ultimately be left.

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  • This is a plot in a grand scale and share holders are the loosers (politicians know that if all goes wrong they just rob the shareholdres! because ultimately shareholders have no right)… Northern rock somehow managed 1/3 of mortgages given in Britain (with FSA not even looking) during labour government..then it ofcourse goes bust because it is unlawful for it not to. Then Tony B somehow lands a job with JPMorgan(among others ofcourse)…then BS (who did know will go bust for a while) goes bust and JPM buys BS (wouldn’t any other institution buy a bank with such calibre at $2/share when it used to be over $100/share?). Why does it turn out to be JPMorgan? Were other banks given the choice of purchase or even an auction?

    Possible senarios:
    1) everything unpredictable and a coincidence
    2) Media reporting bits of news to build a picture that we see and jump to conclusions
    3) It feels like citizens in UK and US and possibly many in the rest of the world have been taken for a ride by a group of internatonal organisation which are well informed about the insider government dealing and are in positions of power and decision making. All they have to do is to pull the rug under financial markets and net the fall out.
    4) other senarios that I have not thought of!

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  • It’s worth saying again what someone else said on this forum.

    Capitalism on the way up; socialism on the way down.

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  • Well what do they say about good riddance to a bad problem?

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  • Radio 4 just reported that Bear Stearns sold for total of about £240 million…. compared to that $140bn last week.

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  • The Fed are lending JP Morgan $30bn to assist in the purchase.

    Bear is not the only bank with problems, more will be revealed soon, I think.

    Last week’s HPC posts suggested a “bounce back” for the dollar this week – personally I don’t see it coming.

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  • Landedgentry says:

    Bear Sh:t Stains

    I heard that investment banks pay the CIA for confidential research, hire the brightest graduates etc. and still this happens??

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  • John Capali says:

    Bear was never worth $140bn, their market cap last week was between $6-$8bn. Where did they et this figure? Citibank’s market cap is $100bn. Ridiculous

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  • mark wadsworth says:

    What DoHousesCrash and Renting2 say.

    John Capali makes a fair point as well.

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  • symo

    Capitalism on the way up – eh? Capitalism is collapsing!

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