Bear Stearns fell $27 on Friday to close @ $30 and worth $2 tomorrow.

[tas38]

( JPMorgan Chase actually paid less for Bear Stearns than the Yankees paid for A-Rod. )

Yes and we all know the brand name only is worth way way more, that is why it has to be a very big scam like so many others.

This is very telling about the scam deal........

( The takeover, which has the backing of the Federal Reserve and the Treasury, underlines the risks banks and financial companies are facing as the U.S. mortgage crisis deepens, while the rock-bottom price -- more than ( -----> 90 percent below its Friday close <----- ) raises questions over valuations in the banking sector. )

So what they are saying is they sold it at 90% below it's real worth as of friday, now just how many of you guys will sell your house, 90% below it's real market value because the market is falling. This has scam all over it, stock holders lost everything on it's stock for sure. And the gov't is all happy about the deal, now why would they be so happy about this scam.

http://www.cnbc.com/id/23663919

 

[PRED]

it seems madness to be able buy such an institution for that.
the guy who just sold bebo.com could have bought 4 times over

i'm no expert, i take it they are buying a whole world of debt with that, which could go on forever right?

i mean, we have had huge firms sold for £1 here, but the debt theat comes with it is

Chelsea football club was sold for a quid a few years back

 

[tas38]

Look at the name who got it ( JPMorgan Chase ) chase bank owns JPMorgan and now Bear Stearns as well.

 

[PRED]

i figured that lol, what debt do you estimate they could be exposed to by buying it tho?

 

[Poker]

Bear Stearns had become insolvent because of it's risky bets. Their liabilities took them down and JP was savvy enough and solvent enough to pick up a great deal.

 

[PRED]

Bear Stearns had become insolvent because of it's risky bets. Their liabilities took them down and JP was savvy enough and solvent enough to pick up a great deal.

yep. how i read it, but does it mean they have no debts? or do jp take on debts?

depending on answer is whether they got a great deal imo.
damn cheap as a trophy purchase, no doubt

 

[BELLC1]

If the CEO of BS said everything was hunky-dory last Monday, then JPMorgan buys them out Saturday with $30 billion backing from the Fed, does anyone really believe a deal like this was kept secret and put together in just a couple days?

 

[Poker]

yep. how i read it, but does it mean they have no debts? or do jp take on debts?

From what I understand the Fed agreed to buy up to $30 billion in Stearns mortgage bonds...of course it would be best if the gov't were not involved at all but you can't blame them for trying to stop a run on the banks, the domino effect could be huge. Either way though JP was smart to be so opportunistic and to be solvent enough in these tough times to make the deal.

 

[dolansco]

i mean, we have had huge firms sold for £1 here, but the debt theat comes with it is

Chelsea football club was sold for a quid a few years back

or MG-Rover ( car maker ) ... sold for £10 in 2000 to Phoenix


http://en.wikipedia.org/wiki/Phoenix_Consortium

It is estimated that, by April 2005, the four Phoenix executives had made around £40 million from MG Rover, a good return on the £60,000 they each invested. MG Rover and related companies placed themselves in administration on April 8, 2005.

 

[PRED]

or MG-Rover ( car maker ) ... sold for £10 in 2000

with hindsight, they totally overpaid for that.
and i'm not joking :smilewinkgrin:

ironically, if you had bought skoda, like vw did, what a great buy and development that turned out to be :yes:

 

[dolansco]

nah Pred ... they didnt overpay .. I know one of those involved ... and they NEVER intended it to survive ... They had so many guarantees from BMW / UK govt that they could not loose ... It was a 5 year play . Buy , milk ... walk ( before the guarantees ran out ) !

 

[tas38]

So taxes player get to pony up 30 billion for the deal, just how much is that worth alone ?

My guess is the domain name is worth more they chase paid, and all this while the same bank forcloses on a record number of homes. And rip credit card holder off, anyway that they can with upto 30% rates. That about right bail out the rich banks, and let the poor home owers lose their homes. The bush admin are really wonderful, that 30 billion would done much better, helping fix the home owners problems.

Edited IN:

I found that chase was mixed up with the enron deal, this makes good reading here a part of the article....

( JP Morgan Chase will put its case to investors, one day after a dramatic fall in its share price that began when US politicians accused the banking giant of helping failed energy trader Enron to hide its debts.

Both JP Morgan and its co-accusee Citigroup saw their shares fall more than 15% on Tuesday, as their executives sat in a US Congressional committee listening to investigators outline their firms' alleged wrongdoing. )

Read all of it at link.....

http://news.bbc.co.uk/1/hi/business/2149111.stm

Here is another where they paid big fines out.......

http://www-rohan.sdsu.edu/~rgibson/jpmorgan.html

And here they was in on the Parmalat down fall, it makes for good reading with billions and billions lost on this stuff.

http://worldvisionportal.org/WVPforum/viewtopic.php?t=176

http://www.cpa.org.au/garchve04/1172bankruptcy.html

 

[Gerry]

here is some information that was presented on this.

Bear Stearns debt to equity ratio was 28 to 1.

In other words, the owed 28 dollars to every 1 dollar they had. That is how many outstanding bad debts they were holding.

The company was sold for $2.00 per share for a grand total of $230 million. Their headquarters building in New York has a fair market price of 3-4 times that. In other words, about $750 million.

Not too long ago, one share was trading at $97.00. For the sake of math, let's say $100. So essentially JP Morgan bought Bears Sterns for 2% value. In other words...for 2 cents on the dollar.

14,000 employees were paid bonuses in stock. Nearly all 14,000 were encouraged (and willingly) purchased stock for their 403B and 401K retirement plans. Those plans are now worthless. Some long time employees literally losing hundreds of thousands of dollars and even millions.

Just a few days ago (March 14), the CEO of Bear Sterns was speaking to investors telling them that the company was in great shape and had a good cushion of capital to work with.

Based on this assessment, investors just a couple of days ago and money market managers for mutual funds dumped in a bigger stake into Bear Sterns.

The rippling effect will be horrible. Those not employed by or have anything to do with Bear Sterns will feel the blow. One such mutual stock is Vangard Windsor.

But most importantly, it is the federal reserve that put this deal together and is backing it.

Think about this a minute. Where does the federal reserve get their money.

You and I, the American taxpayer, not only just loaned JP Morgan $230 million dollars to purchase Bear Stearns...

We, the taxpayers, just took on and will pay Bear Stearns $30 billion dollars in bad debt.

This is just one example of how deep and how much of this is hidden.

By the time this is done and over with, Enron will pale in comparison to this scandal.

Welcome to America...we bail out billionaires.

 

[H2FC]

This is just another example of our Bush/Cheney government at work....use the tax money to support the high rollin super rich....much the same as using tax money to subsidize Exxon Mobil and the other big oil companies so they can continue reporting record breaking profits year after year. Thank God these greedy idiots will be replaced next year.

 

[Gerry]

This is just another example of our Bush/Cheney government at work...

If you want to see when things started spiraling out of hand, look no further than the date of Oct 17, 2005.

Now you have to go digging and find the parallel, the significance, and the impact this date had on the American economy.

 

[DomainName]

If you want to see when things started spiraling out of hand, look no further than the date of Oct 17, 2005.

Now you have to go digging and find the parallel, the significance, and the impact this date had on the American economy.

Let me guess...Let me guess...A new bankruptcy law goes into effect, making it harder for consumers to prove that they should be allowed to clear their debts

 

[tas38]

Well here is just one of JPMorgan Chase settlement, where they paid out 2.2 billion for their role in the enron crimes.

http://www.universityofcalifornia.edu/news/2005/jun14a.html

Edited In:

And we can not forget bush left enron do their crimes, even after being begged by then gov of CA, before enron bring down the state of CA.

 

[tonyfloyd]

Bear Stearns was worth anything because of their Prime Brokerage Operations....if it wasnt for that...no one would of bailed them out....would of just let them go under....

 

[draggar]

JPMorgan Chase actually paid less for Bear Stearns than the Yankees paid for A-Rod.

Sadly this shows you where this country's priorities are. :undecided:

 

[tas38]

This article has.........

( Stock in the Bear Stearns Companies had closed at $30 a share Friday. But the weekend deal could fetch a selling price of only $2 a share. Analysts noted that the real estate of Bear Stearns alone would be worth far more than that. )

http://www.freep.com/apps/pbcs.dll/article?AID=/20080317/BUSINESS07/80317022/1020/Business07