Thursday, August 14, 2008

It looks to me like Bear Stearns got riddled with bullets The buyers were confident the stock would crash.

Bringing Down Bear Began as $1.7 Million of Options (Update2)

On March 11, the day the Federal Reserve attempted to shore up confidence in the credit markets with a $200 billion lending program that for the first time monetized Wall Street's devalued collateral, somebody else decided Bear Stearns Cos. was going to collapse. In a gambit with such low odds of success that traders question its legitimacy, someone wagered $1.7 million that Bear Stearns shares would suffer an unprecedented decline within days. Options specialists are convinced that the buyer, or buyers, made a concerted effort to drive the fifth-biggest U.S. securities firm out of business and, in the process, reap a profit of more than $270 million.

Posted by malct @ 08:05 PM (915 views)
Please complete the required fields.



2 thoughts on “It looks to me like Bear Stearns got riddled with bullets The buyers were confident the stock would crash.

  • We must break the prism of corporate interests Reform of financial regulations is to be carried out by the City elites who profit from their current laxity All comments (27)
    Prem Sikka guardian.co.uk, Thursday July 24 2008 09:26 BST Article historyLast month, the UK government announced the formation of the International Centre for Financial Regulation.

    The main objective of the centre is to carry out research and offer training on international regulation with a view to influencing global laws.

    It is partly funded by the City elites who will inevitably dominate it. The taxpayer has also given it £2.5m but without any commitment from the centre to embrace freedom of information laws, or for access by the National Audit Office to see that taxpayers get value for money.

    http://www.guardian.co.uk/commentisfree/2008/jul/24/comment

    Reply
    Please complete the required fields.



  • Naked short selling. That’s how they did it.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>