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2008-03-16 Home Front: Politix

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Posted by Nimble Spemble 2008-03-16 08:37|| || Front Page|| [5 views ] Top

#1 This will be an interesting stock to follow (BSC), come Monday. Its success or failure will be seen by many as a true indicator of the economy.

Within the last year it has been as high as 159 a share, now it is 30. In the long term, it averaged 75. On Thursday it was at 57.

On close of business tomorrow...

Posted by Anonymoose 2008-03-16 10:22|| 2008-03-16 10:22|| Front Page Top

#2 Trading will be halted long before then. I also wouldn't be surprised to see JPM come out with an offer of next to nothing.

Posted by Nimble Spemble 2008-03-16 10:24|| 2008-03-16 10:24|| Front Page Top

#3 You won't be seeing this stock much longer. Fed will support the buyout so that the assuming entity is not saddled with enormous losses. The taxpayers will absorb these losses, just as in savings and loan mess. Those responsible walk away untouched. They have to get new management in charge of the mess, that's the bottom line.

Posted by Woozle Elmeter 2700 2008-03-16 10:37|| 2008-03-16 10:37|| Front Page Top

#4 Bear Stearns has gone already. It's just a matter of signing the paperwork. However with JP Morgan's name over the door, it's worth a lot of money.

Banking is all about confidence.

Posted by phil_b 2008-03-16 15:04|| 2008-03-16 15:04|| Front Page Top

#5 Bear Stearns has already failed. It's dead, Jim, its name may live on, but no one in their right mind would want that company handling their money. Its living remains will be transferred to others, and the taxpayers will be on the hook for the rest.
It should have gone without saying that Bear's equity owners deserve to lose their entire stake, they had their chance to change months & years ago & did nothing but make matters worse. Any contracts Bear has with its "employees" better known as "overlords" to provide gold parachutes & millions in looted equity should be voided by whatever means necessary. The worst perps, in addition to losing their ill-gotten riches, should be doing hard time, but I anticipate that will work about as well as the retribution meted out to Ken Lay for his Enron caper (i.e., none at all besides his time spent in a courtroom).
The Fed's only success in covering Bare Sterns is that a total credit collapse has been avoided, one more time. We may not know if Bear's collapse would have had a domino effect, but Ben Bernanke didn't want to run an uncontrolled experiment on the world. I for one like to have running water & electric power, to see my neighbors employed, and food for sale at the grocery store.
Confidence in the Fed and ultimately in the full faith & credit of the USA is the next factor at risk.

Posted by Anguper Hupomosing9418 2008-03-16 15:41|| 2008-03-16 15:41|| Front Page Top

#6 Actually, I am not so pessimistic. BSC has a huge amount of paper that the government will want to have carried for quite a while. And if there is a market recovery, that paper could propel BSC right back up the ladder.

So as I said, tomorrow will be the big day. By the end of the day, if it loses another 50%, it will be one thing; but if it regains much of its Friday losses, it may be back on its feet again for quite a while.

There can be plenty change of command at the board and executive level that will be pretty invisible to investors, but will do much to restore insider confidence.

Posted by Anonymoose 2008-03-16 16:09|| 2008-03-16 16:09|| Front Page Top

#7 ...Well, let's see - FoxNews is reporting that JPM will make an offer tomorrow for Bear - AND it's being reported that the Feds may have withheld and/or doctored evidence in the Enron trials. The Chinese curse, once again...

Mike

Posted by Mike Kozlowski 2008-03-16 16:43|| 2008-03-16 16:43|| Front Page Top

#8 That's right, Mike. Fastow's conviction will be overturned and maybe Lay's, too. Another Nifong/Spitzer style cf. I used to assume that if someone was being prosecuted chances wer 99.99% guilty. Never again.

Posted by Nimble Spemble 2008-03-16 17:33|| 2008-03-16 17:33|| Front Page Top

#9 Also, I would not be surprised to see BofA get in a bid also.

Posted by Nimble Spemble 2008-03-16 17:34|| 2008-03-16 17:34|| Front Page Top

#10 I got Skilling and Fastow mixed up. Here's a link

Posted by Nimble Spemble 2008-03-16 17:42|| 2008-03-16 17:42|| Front Page Top

#11 Just coming across the newswires tonight...JPM buying BSC for $2 a share...that is not a mis-print! Wow...I think investors in the financials are going to get creamed tomorrow. Wish I had bought some BSC puts...

Posted by mjh">mjh 2008-03-16 20:38|| 2008-03-16 20:38|| Front Page Top

#12 This is why they get to keep their parachutes. This is a Fed forced cram down. There is no way JPM has had time to do sufficient due dil to justify this one way or the other. Likewise, the fairness opinion probably comes with a drum set for do it yourself rim shots. So everybody lives for another day, at least in their dreams tonight, and the Fed hopes the dominoes stop here. Good luck Benny. You're on your way to the G. William Miller Award.

Posted by Nimble Spemble 2008-03-16 20:51|| 2008-03-16 20:51|| Front Page Top

#13 Does this mean that JPM is exchanging all common stock of BSC at .05473 per share of JPM stock, or just enough to buy the company?

Posted by Anonymoose 2008-03-16 20:54|| 2008-03-16 20:54|| Front Page Top

#14 $2.00 per share, $236 million total price. That's for a stock that closed at $30 per share on Friday. I'd call that an equity wipe out.

Posted by Nimble Spemble 2008-03-16 20:58|| 2008-03-16 20:58|| Front Page Top

#15 All the BSC stock at .05473 per share of JPM stock. Here.

Posted by Nimble Spemble 2008-03-16 21:03|| 2008-03-16 21:03|| Front Page Top

#16 Told you.

Lehman Next.

Big problem is that the taxpayer will be eating the sh1t-sandwiches so the big banks are OK. IMHO Socialism for banks is just as bad as socialism for people.

Posted by Bright Pebbles 2008-03-16 22:29|| 2008-03-16 22:29|| Front Page Top

23:49 Muggsy Gling
23:49 Barbara Skolaut
23:48 Goober Glomoper6475
23:39 Black Bart Elmeatle8934
23:38 Muggsy Gling
23:32 mac-d-only
23:21 Ehud Olmert
23:17 Frank G
23:02 mac-d-only
22:30 Bright Pebbles
22:29 Bright Pebbles
22:24 JosephMendiola
22:16 Bright Pebbles
21:09 Muggsy Gling
21:05 Bright Pebbles
21:04 Bright Pebbles
21:03 phil_b
21:03 Nimble Spemble
21:00 Bright Pebbles
20:58 Nimble Spemble
20:54 Anonymoose
20:51 Nimble Spemble
20:38 mjh
20:30 Nimble Spemble