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Fed Races to Rescue Bear Stearns
- Thread starter anthrax
- Start date
PeterProud
Banned
I luv bears
calveless wonder
New member
lol
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Spartacus
Guest
30 a share should we buy monday?
captainahole
New member
wouldn't touch it at 30 to much downside at this point. the feds may have come to the rescue but it'll take about 30 days to see if they will stay liquid so you have alot of downside until then.
Look at citibank trading under 20 think should hit around 15 area that would be a great buy.Have an open order to sell some 15.00 sept puts at 2.25 ea. See if I get a fill over the next couple weeks or not.
Look at citibank trading under 20 think should hit around 15 area that would be a great buy.Have an open order to sell some 15.00 sept puts at 2.25 ea. See if I get a fill over the next couple weeks or not.
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heatherrae
Guest
My son has funshine bear. Is this thread about care bears?
lol.
lol.
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Spartacus
Guest
it was in friday's WSJ bor75th said:
Lumberg
New member
75th said:
Didn't someone mention LCTM at the beginning of this thread?
You tell me if this is another LCTM after I present to you the following data:
LCTM: Fed-brokered buyout to the tune of $3.6bn, all from the consortium of banks recruited by the Fed. The Fed pays for the electricity and maybe some food for the meeting.
BSC: Fed-brokered buyout to the tune of $236m, but with the Fed assuming up to $30bn of risk as a "please-thankyou" to JPM.
So, the question is,
Did BSC juice for the role of LCTM in the latest Fed-facilitated emergency buyout?
Ya, I think it's safe to say Lehmans is getting bent over.anthrax said:In the end the tax payer is paying for the incompetence of those BMW driving people
Tomorrow is Lehman's results.... another rocking day in sight and major lay off in the next few weeks/months
chazk
New member
The company share holders got screwed.
Instead of getting govt funds like the other banks have already done.
BS were forced to just dump the company over to JP morgan. I bet the ceo's of BS will walk with multimillion dollar buy out retirement packages while everyone else that held shares got fucked.Meanwhile the whole deal happened over the weekend after hours
This is exactly what the big companies want they love economic failure as long as they come out on top .They want to have the rival comps go under so they can make a fortune when the recession is over.
Just as the large companies did after great depression they bought up rival companies for nothing ,stole large sums of land for pennies and bought entire cities for next to dirt.
One mans recession is a big companies chance to buy everything in site for a song and a dance when the shit hits rock bottom.
Instead of getting govt funds like the other banks have already done.
BS were forced to just dump the company over to JP morgan. I bet the ceo's of BS will walk with multimillion dollar buy out retirement packages while everyone else that held shares got fucked.Meanwhile the whole deal happened over the weekend after hours
This is exactly what the big companies want they love economic failure as long as they come out on top .They want to have the rival comps go under so they can make a fortune when the recession is over.
Just as the large companies did after great depression they bought up rival companies for nothing ,stole large sums of land for pennies and bought entire cities for next to dirt.
One mans recession is a big companies chance to buy everything in site for a song and a dance when the shit hits rock bottom.
chazk
New member
they knew what was comming last quater of 2007 , they already pulled the shoots before posting this years first quater losses.75th said:
http://www.signonsandiego.com/news/business/20071228-0939-bearstearns-cayne.html walked with 15 million in cash a 38 million in comp package
then he stepped down less then two weeks later
http://www.thestreet.com/s/bear-stearns-ceo-departs/newsanalysis/banking/10397680.html?puc=_tscrss
crooked fuckers.
So? You see CEOs selling millions of dollars worth of their stock every year. For most of them, its more than half of their compensation package.chazk said:
Although Im sure they knew things werent going great, it was the surprise lack of liquidity in the commercial market that did them in. Once the auctions were cancelled, they were dead in the water.
Imagine walking into your bank to make a withdrawl from your checking account...an account you KNOW you have money in and you KNOW that money is available whenever you need it. Imagine the teller at the bank said, "Yeah, we cant give that to you. Try back in a week."
chazk
New member
LOL that would suck but as long as it was not over 100k your fdic covered.75th said:
Yes ceo's sell millions of dollars of stock each year but do you see them sell 15 million ,get a comp package worked out then bail 10 days later? can you say inside trading. It is obvious they over inflated the stock back in november by posting " not to big of a loss" to keep stock hanging around 100$ a share had they come clean back then he would not have walked with 15million cash he would have walked with 4% of that obvious he has inside info and knew when to dump.
Definately a possibility, but again keep in mind the reason it happened to quickly was due to liquidity (or lack thereof).chazk said:
Regarding FDIC, its not that your money is gone...its just that the bank wont give it to you. Thats what they were going through.
chazk
New member
bear has a banking side also Custodial Trust Company is their bank department so that is fdic covered for people who make depositsDial_tone said:
But yea I think a multimillion dollar walk away for a ceo from any company that is hundreds of millions of dollars in debt and lost millions of people investments and money Is a decent walk away
I think he should be rewarded with a blind fold and a firing squad
I mean give me a break 38 million comp package 23mil after taxes
Wulfgar said:
Im still so fuckin pissed at myself for not shorting Citi back in october when it was around 50. I was so close to selling that stock short. I thought about shorting JP morgan back when it was at 45 it went down to like 38 last week but today it went back up b/c of this bear sterns thing but im still hesitant about shorting b/c im concerned about the Visa IPO since JPM will be so involved in it
redsamurai
Banned
I thought we were capitalists?.......free market? Why is the fed using taxpayer money to bail out a failed "business"??
redsamurai
Banned
I mean this is the free market........you either sink or swim right?
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Spartacus
Guest
Meet the English mega money mogul who lost 1 billion dollars
BY PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Tuesday, March 18th 2008, 4:00 AM
Joseph Lewis earned the nickname "The Boxer" after decades of aggressive deal making - but Bear Stearns' meltdown knocked this Wall Street prizefighter to the canvas.
The reclusive 71-year-old British billionaire is the biggest individual loser in the Bear disaster, suffering a staggering loss of $1.2 billion.
While he's known for his shrewd currency investments and gutsy real estate moves around the world, Lewis made a disastrous mistake last year when he began scooping up Bear Stearns shares at an average price of $107, betting they were undervalued. Now, with JPMorgan Chase buying battered Bear for just $2 a share, his investment is all but wiped out.
Because of Lewis' vast wealth - Forbes estimates his net worth at $3 billion - he can absorb the blow far better than the thousands of Bear Stearns employees and shareholders who lost smaller fortunes. But his bad bet may give investors pause the next time he tries to do a deal.
"It's never easy to see $1 billion evaporate," said Douglas McMahon, a managing director at Tavistock Group, Lewis' investment company. "The good news is Joe has been so successful, this doesn't change any of his investment activity."
Lewis, who was a Bear Stearns client and friend of ex-Bear Stearns boss Jimmy Cayne, bought his huge stake with cash.
"It was not leveraged or tied to any other assets. It is an isolated loss," McMahon said.
A high school dropout who still speaks with a Cockney accent, London-born Lewis turned his family's small cafe into a restaurant empire. But he would make the bulk of his fortune in currency trading.
Looking to avoid Britain's capital gains tax, Lewis moved to the Bahamas, where he is the second-biggest land owner behind the Bahamian government and lives in a mansion in the exclusive Lyford Cay enclave.
Lewis' fall from grace shows how treacherous investing has become in light of the subprime mortgage crisis, New York money manager Mike Holland said. "The smartest investor can lose a lot of money when they get exposed to these crazy times," Holland said.
BY PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Tuesday, March 18th 2008, 4:00 AM
Joseph Lewis earned the nickname "The Boxer" after decades of aggressive deal making - but Bear Stearns' meltdown knocked this Wall Street prizefighter to the canvas.
The reclusive 71-year-old British billionaire is the biggest individual loser in the Bear disaster, suffering a staggering loss of $1.2 billion.
While he's known for his shrewd currency investments and gutsy real estate moves around the world, Lewis made a disastrous mistake last year when he began scooping up Bear Stearns shares at an average price of $107, betting they were undervalued. Now, with JPMorgan Chase buying battered Bear for just $2 a share, his investment is all but wiped out.
Because of Lewis' vast wealth - Forbes estimates his net worth at $3 billion - he can absorb the blow far better than the thousands of Bear Stearns employees and shareholders who lost smaller fortunes. But his bad bet may give investors pause the next time he tries to do a deal.
"It's never easy to see $1 billion evaporate," said Douglas McMahon, a managing director at Tavistock Group, Lewis' investment company. "The good news is Joe has been so successful, this doesn't change any of his investment activity."
Lewis, who was a Bear Stearns client and friend of ex-Bear Stearns boss Jimmy Cayne, bought his huge stake with cash.
"It was not leveraged or tied to any other assets. It is an isolated loss," McMahon said.
A high school dropout who still speaks with a Cockney accent, London-born Lewis turned his family's small cafe into a restaurant empire. But he would make the bulk of his fortune in currency trading.
Looking to avoid Britain's capital gains tax, Lewis moved to the Bahamas, where he is the second-biggest land owner behind the Bahamian government and lives in a mansion in the exclusive Lyford Cay enclave.
Lewis' fall from grace shows how treacherous investing has become in light of the subprime mortgage crisis, New York money manager Mike Holland said. "The smartest investor can lose a lot of money when they get exposed to these crazy times," Holland said.
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bicep_vien
Guest
For those of you who wonder why the deal went for $2.00, let me explain…
Bear was worth nothing, absolutely NADA!!! The reason that the Fed and treasury went in was due to the legal implications to the entire world banking system and markets had Bear entered into bankruptcy court.
Of little explained or known consequence to many were the implications of a bankruptcy filing on the various securitized trusts Bear and it’s minor child, EMC Mortgage, were servicing and securitizing. Bear had double and triple pledged notes to various trusts.
Cash flows from EMC’s business model were not allowing excess cash to cover the investor advances of principal and interest that were necessary to keep the securitizations alive. Has there been a bankruptcy filing, Bear’s Books and it’s dealings with ALL it’s partners and counterparites and those it serviced and sold mortgages to, would have publicly opened up their books for inspection.
There would have been an attack on the “true sale” issue and some would have claimed that these assets were financed receivables, and not true sales, and as such they should rightfully come back on Bear’s balance sheet to be split up amongst creditors!
This would have wrought panic across financial markets since it could have been the death knell of the MBS/ABS markets and would have collapsed the world financial system.
This is the real story that needs to be properly investigated and told. ENRON was a carbon copy of what Bear and others were doing. They created digits out of paper [promissory notes and created a new financial market with little regulation or oversight.
Bear was worth nothing, absolutely NADA!!! The reason that the Fed and treasury went in was due to the legal implications to the entire world banking system and markets had Bear entered into bankruptcy court.
Of little explained or known consequence to many were the implications of a bankruptcy filing on the various securitized trusts Bear and it’s minor child, EMC Mortgage, were servicing and securitizing. Bear had double and triple pledged notes to various trusts.
Cash flows from EMC’s business model were not allowing excess cash to cover the investor advances of principal and interest that were necessary to keep the securitizations alive. Has there been a bankruptcy filing, Bear’s Books and it’s dealings with ALL it’s partners and counterparites and those it serviced and sold mortgages to, would have publicly opened up their books for inspection.
There would have been an attack on the “true sale” issue and some would have claimed that these assets were financed receivables, and not true sales, and as such they should rightfully come back on Bear’s balance sheet to be split up amongst creditors!
This would have wrought panic across financial markets since it could have been the death knell of the MBS/ABS markets and would have collapsed the world financial system.
This is the real story that needs to be properly investigated and told. ENRON was a carbon copy of what Bear and others were doing. They created digits out of paper [promissory notes and created a new financial market with little regulation or oversight.
chazk
New member
bicep_vien said:
Do you think BS was the escape goat?
All the other banks sold their garbage to them and they accepted it and knew exactly what was going on. They cooked the books long enough to make big ceo payouts. Then when they could fool no one anylonger they went under just like enron?
Makes sense if your a BS and to take pay offs to dispose of other people junk hedge funds and wortheless paper. You save the other banks the govt writes off 30 billion in debt and all the ceo's from every bank is happy
after it all blows over will the top execs from BS find themselves sitting in cushy jobs with the other banks who hired them as repayment for dumping their junk
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bicep_vien
Guest
Dial_tone said:
They will be lit for 3bill
-------
I knew it so well. I played it like a player this week
Sunday night the Asian market tanked, the us market followed shortly to go down (not too bad) and 10 yr treas. went through the roof bringing 30 yr mortgage rates down! I called it sunday night. Rates dropped and went back up today big time.
it was almost too easy to call
gold will hit 1600. Calling it right now.
So the fed drops a 75 pt basis point cut today
lehman and GS reports good earnings and everyone is happy now?
bullshit..its a temp fix. lehman and GS is still going to plummet IMHO
all this has come from subprime mortgage credit problems. Considering mortgage rates are due to treasuries someone tell me how a basis point cut on the prime can, in any way, help stop the bleeding
lehman and GS reports good earnings and everyone is happy now?
bullshit..its a temp fix. lehman and GS is still going to plummet IMHO
all this has come from subprime mortgage credit problems. Considering mortgage rates are due to treasuries someone tell me how a basis point cut on the prime can, in any way, help stop the bleeding
It doesnt, but the general public thinks it does.Wulfgar said:
Really the only thing that can drag us into a recession is consumer spending. Lower rates on credit cards, auto loans, along with a "stimulus package," the Fed's master plan is that this will get people to spend more money.
I read somewhere that even if 60% of people spend their $600, that will life the GDP a full 1%.
seaking420
New member
One of my clients husband works for bear...still has his job but will most likely lose it by the end of the week. Now I dont know much about it, but she told me that JP Morgan made a cut throat deal and wanted to get the deal done asap because there was no other bank that could fund the money during the weekend hours like JPM could.
Bicep vein said the rest.
I feel bad some of these people lost thousands to millions and were banking on that as there retirement......now what are those people that are in thier late 50's/60's going to do. Imagine having all this money you expect to retire with in a few years that you worked your ass of all of a sudden gone......thats some fucked up shit
Bicep vein said the rest.
I feel bad some of these people lost thousands to millions and were banking on that as there retirement......now what are those people that are in thier late 50's/60's going to do. Imagine having all this money you expect to retire with in a few years that you worked your ass of all of a sudden gone......thats some fucked up shit
JP initially walked away from the table. The Fed pleaded with them to take it, which is why they decided to grab $30bn of the less-secure investments.seaking420 said:
Jamie Dimon has built his career on this type of strategy, and hes extremely good at what he does.
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bicep_vien
Guest
seaking420 said:
most banks didnt have it aval at the drop of the hat, they didnt even cut a check. it is convertible stock
the building on madison ave alone is worth more then 240m
Now Dimon doesnt have to build that new NY headquarters he has been thinking about.bicep_vien said:most banks didnt have it aval at the drop of the hat, they didnt even cut a check. it is convertible stock
the building on madison ave alone is worth more then 240m
Lumberg
New member
bicep_vien said:
Please file this post under BS
NO C.
Dude, whatever you read or whatever made you think whatever you said was anywhere close to true, forget it. Throwing around terms like "securitize" and "MBS/ABS" (which stand for mortgage backed securities and asset backed (or based) securities does not a smart post make.
Parse that, bitch!
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bicep_vien
Guest
Lumberg said:
sorry mr postal worker
