What's the story with Bear Stearns?

KangaXX · Post by **KangaXX** » Fri Mar 14, 2008 2:21 pm

US Northern Rock. Mkt seems to think this is positive. Strange

NEW YORK--(BUSINESS WIRE)--March 14, 2008--

Today, JPMorgan Chase & Co. (NYSE: JPM) announced that, in conjunction with the Federal Reserve Bank of New York, it has agreed to provide secured funding to Bear Stearns, as necessary, for an initial period of up to 28 days. Through its Discount Window, the Fed will provide non-recourse, back-to-back financing to JPMorgan Chase. Accordingly, JPMorgan Chase does not believe this transaction exposes its shareholders to any material risk. JPMorgan Chase is working closely with Bear Stearns on securing permanent financing or other alternatives for the company.

AJ@NP · Post by **AJ@NP** » Fri Mar 14, 2008 3:05 pm

14:02 courtesy of BB - Bear's down 48% to $29.52 in NY

Has the news of the liquidity problems swamped the rescue package? Also, why are the CDS spread on JPM going up if there is 'no risk' to themselves?

jp341 · Post by **jp341** » Fri Mar 14, 2008 3:05 pm

BSC.N down about 50% as I write this..

Cheng · Post by **Cheng** » Fri Mar 14, 2008 3:46 pm

Also, why are the CDS spread on JPM going up if there is 'no risk' to themselves?

After all what happened over the last couple of weeks, do you believe anyone who says 'there is no risk' to whatsoever ?

FDAXHunter · Post by **FDAXHunter** » Fri Mar 14, 2008 3:57 pm

Man... the shareholder lawsuits are going to be just out of this world.

AJ@NP · Post by **AJ@NP** » Fri Mar 14, 2008 3:58 pm

Fair point a degree of healthy scepticism is always a good idea in troubled times!

RFMontraz · Post by **RFMontraz** » Fri Mar 14, 2008 4:01 pm

At the current level Bear is worth 4 Bil USD, is that correct? How can they carry on with their business? And - pardon my ignorance - how can they cope with another writedown?

FDAXHunter · Post by **FDAXHunter** » Fri Mar 14, 2008 4:10 pm

They make all of their 14,000 employees sell one of their kidneys. Bear kidneys are huge and therefore valuable.

iparkins · Post by **iparkins** » Fri Mar 14, 2008 4:17 pm

The shareholder lawsuits are going to be huge but the mgt have behaved in the most shareholder friendly fashion imaginable. By creating a basis for shareholder suits they make the s/h pari with the creditors rather than junior. Aren't management meant to work for the benefit of s/h ${L_SMILIES_WINK}$

Kitno · Post by **Kitno** » Fri Mar 14, 2008 4:23 pm

With BSC gone we can all focus on "the others". A few CDS street participants were pulling lines with BSC & others at the end of last week. Hard to lift protection at 80 on a name when the cpty's running at >500. Wonder when the LEH rumours'll start.