JPMorgan says it would buy ailing Bear Stearns for $2 a share

[DeSwiss]

Source: Associated Press

1 minute ago

NEW YORK - JPMorgan Chase says it will acquire rival Bear Stearns for $2 a share in a move aimed at averting spreading panic in the financial markets over tightening credit.

JP Morgan says the all-stock deal has received the required approvals from the federal government and the Federal Reserve.

The Fed will provide special financing to JPMorgan Chase in connection with the deal. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.


Read more: http://news.yahoo.com/s/ap/jpmorgan_bear_stearns

---

- Well now we can all rest easy....

========================================================================
DeSwiss


http://atheisttoolbox.com/">The Atheist Toolbox

[Fed_Up_Grammy]

1. Only $2.00 a share? Doesn't make sense,then what does these days.

[DeSwiss]

56. It would seem that the spirit of JPMorgan....

...the founder of our last Great Depression, is alive and well.

[saigon68]

67. YES --- and BSC is insolvent and they and the insiders at JPM knew it

Last month--- I wonder how many bailed already

[DeSwiss]

71. I sure the ones who were "supposed" to....

...were already safely on the sidelines with good seats so they could watch.

And the Asian markets are in turmoil right now. Its all red:

http://finance.yahoo.com/intlindices?e=asia">Asian Market Streaming Quotes

- Yikes, this is not pretty....

[dysfunctional press]

75. and it is MIGHTY white of them to do so, isn't it...

mighty mighty MIGHTY white of them.

[angstlessk]

2. earlier I read BS wanted $20.00 per share????

shit I recon that is a fire sale?

On edit: wait, JP get the stocks for $2.00 per share or 236 million and the 'central bank' aka the fucking federal reserve will fund 30 BILLION to prop up the less 'liquid' assets?

Does this mean the taxpayers will fund the loss and JP will pay $2.00 for stock worth about $20.00 because the FUCKING TAXPAYERS bailed them out???

An us homeowners who did not take all the legal courses we should have before signing our mortgage (equal to a doctorate) can just suck eggs???

[Lucky Luciano]

26. Could be sensible

Basically, the equity in Bear Stearns is worthless. Think of buying a house for $100,000 and putting in $2K and borrowing $98K.

The less liquid assets are a problem. They are mortgage securities and they have cash flows associated with them, and they are therefore worth something. The trouble is that, there is literally NO BID for any of these securities even though they have a cash flow associated with them. So if not one person is willing to buy these securities, where do you mark its value? By law, banks are forced to mark their securities to market - but what happens when there is no market? Gets very unclear what the value is. So, these $30B of less liquid securities cannot be sold, but they do have cash flows coming in - those cash flows are withering away though as people default on their homes.....all that said, there are models that get used to mark these securities (even though nobody knows if the models are correct either)...and the models say that the banks have far less money than they did before - forcing them to raise capital to cover their legal minimums and meet any margin calls they may have. Bear could not do that - they could not come up with the cash needed to stay in business because their less liquid assets were not desired by anyone else and nobody knows what they are worth - they are valued by where they are marked, but cannot be sold at those levels - Imagine a market where the bid is 10 and the offer 75 - that is more or less the problem here.

[truedelphi]

72. Were you able to watch the C Span coverage of the Chris Dodd

Hearings held on Senate oversight of the Banks and the crisis back on MArch 4th?

The young people in charge of the computer models were all going, "Well, everything had been so rosy for so long, that we never thought to enter any data for the models that wasn't also rosy or at least benign."

Garbage in, garbage out... It's a shame these computer model-ers had to take the economy with them while they learned how to model the game.

[muriel_volestrangler]

3. Buying at $2 a share - sock closed at $30 on Friday

If those figures are right - :wow:

[Make7]

30. Closed at $57 on Thursday, and at $70.08 the previous Friday. ( n/t )

[Kittycat]

4. That has to be a typo in the article.

I read AP at $20.

[muriel_volestrangler]

8. Any link? That's AP on Yahoo, in the OP

And here's another one, via the AP's own front page link:

http://hosted.ap.org/dynamic/stories/J/JPMORGAN_BEAR_STEARNS?SITE=CAVIC&SECTION=HOME&TEMPLATE=DEFAULT

Same story.

[Joanne98]

5. It's a typo. It's 20$ but this will make people shit their pants.

[angstlessk]

10. NOT a typo....repeat NOT A TYPO @ $20.00 p/share 2.2 Billion they paid 236 million

The Wall Street Journal said on Sunday that Bear Stearns could sell itself for around $2.2 billion, or less than $20 a share

[ChairmanAgnostic]

40. two. not twenty. two. 2. TWO.

that says a lot.

[gristy]

6. Once the Fed gets on with their bailout

BS is going to be worth a lot more than $2 a share (and maybe more than $20/share). I see they were at $160/share a little over a year ago.

http://chart.finance.yahoo.com/c/5y/b/bsc

And they haven't been at 20 bucks since 1996
http://chart.finance.yahoo.com/c/my/b/bsc

And they were at $3.84 in 1985
http://chart.finance.yahoo.com/c/my/b/bsc

$2/share! :wow:

[screembloodymurder]

7. $2 dollar! $2 dollar? You've got to be kidding.

Must be a misprint. If I owned shares I'd sue.

[ShockediSay]

55. Then you should sue mgmnt of BSC; please read this Sun Times

article of BSC's "dog-eat-dog we're brass knuckles, we're tough" ...
and how we end up a bailout nation.

Read the article and you might agree with me that BSC deserves no less

[Neshanic]

9. For JP Morgan Chase is there not the bonus of tax write offs? Big ones when they buy the dump?

[Joanne98]

11. Check out the Bear message board. Too funny!

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_T/threadview?m=te&bn=2670&tid=99139&mid=99139&tof=5&frt=2#99139

[muriel_volestrangler]

13. And check the ironic ads in the sidebar on the right

"Money Can Grow on Trees" "Stocks Ready To Soar" "Reliable Net Profits of $4000 a day. Easy - No Experience Needed".

[Neshanic]

14. WOW, and people think GDP is rough....that's some comedy gold in there.

[jlake]

59. Yeah "TAKE POISON YOU BASTARD" is going to be my new snark line!

[Neshanic]

77. That is an excellent one. That place is packed with em'.

[Ichingcarpenter]

16. "I BOUGHT 10,000 SHARES AT 32.00 ON FRIDAY"

"on margin, what am I going to do now?"



Reply:
"Bend over and hold tight this is gonna hurt a little"

[Xenotime]

69. Shit. Sorry to hear that.

[hatrack]

80. Uh, you're going to lose a shitload of money. Never try to catch a falling knife . . .

:wtf: was this person THINKING?!?!

[Joanne98]

28. Here's another one! LOL

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_T/threadview?m=te&bn=2670&tid=100160&mid=100160&tof=9&frt=2#100160

[Ichingcarpenter]

34. Yikes that's some major money these people lost.

I can't see why, they didn't see it coming
with all the news on this.

I didn't expect $2, but something
around $15 by tomorrow.

[Joanne98]

42. BASHERS & SHORTS SHOW SOME RESPECT:

for the people who are stuck holding bsc! I sincerely feel for the people who have lost vast sums of money on this stock! A few years ago I nearly lost every thing I had on (Km) Kmart that was my own fault. the writting was on the wall before they went bk. I speculated and on MLK day when the markets were closed that when they declared BK! no way out. since then I have recovered my money making much smarter trades. its difficult to make a come back when youre hit this hard but it can be done! good luck to all of you caught up in this mess! and as to the bashers & shorts on this board to kick people when their down is nothing short of evil when you least expect it youre day will come! mark this post!

Answer......

i don't feel a damn bit sorry. greedy pigs. bear and the rest helped stoke one of the biggest bubbles - and scams - in recent financial history. too many fat cats unfortunately walked away with gazillions. at least the bear rank & file will (hopefully) pay a price. if you were greedy and dumb enough to go long, too frigging bad. stop your fuc*ing whining
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_T/threadview?m=te&bn=2670&tid=101007&mid=101007&tof=3&frt=2#101007

LOLOLOLOLLLLLLLL

[sce56]

65. Here are some more gems found on the message boards

1. George W. Bush Worst President Than Adolph Hitler
What other evil than George W. Bush could spawn this mess?
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 34 minutes ago

2. HOW DOES IT FEEL AMERICA?!
The Frankenstein monster George W. Bush has now turned on you. The monster's mantra CRUSH, KILL, DESTORY is being felt by you. The monster will destroy you.
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 42 minutes ago

3. WHOLE BANKING SYSTEM IN RUINS
ENDLESS WAR FINANCIAL COLLAPSE DEPRESSION AMERICAN IN RUINS THAT IS THE BUSH LEGACY
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 16-Mar-08 08:28 pm

4. Citi Holders Are Craping Their Pants
Their stock is worth nothing too.
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 16-Mar-08 08:25 pm

5. CORRECTION: 2 cents a share
Who are you going to believe, me or the newswire?
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 16-Mar-08 08:20 pm

6. Re: One day BSC is "ALL IS WELL" next day its were a train wreck
All it took was 24 hours says the company, then it was broke. A real case of 'Here today, gone tomorrow.'
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 15-Mar-08 01:25 am

7. Warren Buffett Might Buy BSC
Who knows?
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 15-Mar-08 01:19 am

8. Re: Remember: REAL ESTATE is a HARD Asset
Real estate prices have probably bottomed. I say this because, in the worst areas, they have fallen 30% or more. The world is much different that during the Great Depression...
Business & Finance > Investments > Stocks (A to Z) > Stocks B > BERKSHIRE HATH HLD A (BRK-A) soapking_2000 14-Mar-08 10:00 pm

9. The Future For America is BLEAK
Don't you wish Clinton were back in office?
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 14-Mar-08 09:44 pm

10. G.W. BUSH HAS HEAD UP HIS ASS
He insists the economy is not in recession and opposes Democratic measures for government intervention to resolve the credit crisis. Left to continue in office, his legacy would be an...
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 14-Mar-08 09:38 pm

11. I THOUGHT IT WAS GOOD NEWS
The bailout likely means that Bear Stearns won't go out of business. I guess it's a case of 'buy on the rumor, sell on the news'.
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 14-Mar-08 09:27 pm

12. Re: WORLD currnecy - will be Peso soon
Mexico will buy the United States. LAMO
Business & Finance > Investments > Stocks (A to Z) > Stocks T > The Bear Stearns Companies, Inc. soapking_2000 14-Mar-08 05:24 pm

13. Re: This WONT GO AWAY SPITZER
He has to resign, he has no choice since he'll be in prison for the next 5 years.
Business & Finance > Investments > Stocks (A to Z) > Stocks A > Apple Inc. (AAPL) soapking_2000 11-Mar-08 01:14 am

14. HOW UGLY WILL IT GET?
Not as ugly as your face.
Business & Finance > Investments > Stocks (A to Z) > Stocks A > Apple Inc. (AAPL) soapking_2000 10-Mar-08 05:52 pm

15. AN UGLY DAY
As ugly as your face.
Business & Finance > Investments > Stocks (A to Z) > Stocks B > BERKSHIRE HATH HLD B (BRK-B) soapking_2000

[Ichingcarpenter]

12. Good Grief $2.00?

From $30 to $2..... this is gonna be interesting.

[Joanne98]

15. OMG It's not a typo.!!!!!!!! $236.2 million TWO DOLLARS!!!!

AP
JPMorgan Closes Deal on Bear Stearns
Sunday March 16, 7:18 pm ET
By Joe Bel Bruno and Madlen Read, AP Business Writers
JPMorgan Chase Says It Will Acquire Rival Bear Stearns for $2 a Share


NEW YORK (AP) -- JPMorgan Chase said Sunday it will acquire rival Bear Stearns in a deal valued at $236.2 million, a stunning collapse for one of the world's largest and most venerable investment banks.
JPMorgan Chase & Co. said the $2 a share, all-stock deal has received the required approvals from the federal government and the Federal Reserve. Bear Stearns shares close Friday at $30 a share.

The Fed will provide special financing to JPMorgan Chase in connection with the deal, JPMorgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.
http://biz.yahoo.com/ap/080316/jpmorgan_bear_stearns.html

[DeSwiss]

57. You should be ashamed of yourself....

...for ever doubting me. j/k

[DuaneBidoux]

84. Just their building is worth twice that: weird.

[Robbien]

17. Since S&P downgraded Bear on Friday, Bear is not a going concern

Bear's only true business was to get credit at low interest and then loan it out at higher interest.

Bear cannot get credit at low interest rates (if it can get any at all).

Thus, not a going concern.

Not hard to believe JPMorgan is going to be swooping down like a vulture and have a feast on the dying, soon to be dead, bear.

[high density]

18. This is why you do not buy individual stocks

$160/sh to $2 in less than 10 months.

[selador]

36. cmon

i've made immense amounts of money buying individual stocks (and futures and options etc.)

this is why YOU DO NOT PUT ALL YOUR EGGS IN ONE BASKET

you diversify.

my largest stock holding is less than 4% of my entire portfolio

but stocks are the greatest wealth builders known to man - and available to all with access to markets

[high density]

50. That's great for you. Most people who try to buy individual stocks don't follow that philosophy

I buy cheap index funds.

[selador]

52. that's good too

love index funds. vanguard especially.

i agree that MOST don't. i am obscenely anally discipline when it comes to stocks at least :)

[Xenotime]

70. I'd like to see how far your song and dance....

goes over on wall street on monday. Or, the people that will lose their jobs because of this.

[selador]

74. song and dance

the stock market is not song and dance. it's the greatest wealth creation engine known to man - ever.

and the nice thing about the stock market is the electronic markets show no respect to gender, race, creed, religion, etc. i get the same order priority as anybody else in the order book.

are you predicting armageddon on monday?

capital is placed at risk. some people will lose money. some will lose jobs. heck, scores of hedge funds have gone under in the last year. welcome to wall street.

the jun contract dow futures are currently down 249 pts.

[IndianaGreen]

19. That's the end of a financial institution that has been independent forever

The sharks are circling while the country goes to pot.

[Neshanic]

20. But the corporate art collection should bring in enough for a kegger.

[gristy]

21. In 2005, James E Cayne of Bear Stearns made $26M and owned $658M in stock

http://www.forbes.com/static/execpay2005/company_51.html?passListId=12&passYear=2005&passListType=Person&searchParameter1=unset&searchParameter2=unset&resultsHowMany=25&resultsSortProperties=%252Bstringfield10%252C%252Bnumberfield1&resultsSortCategoryName=Company&fromColumnClick=&bktDisplayField=stringfield2&bktDisplayFieldLength=2&category1=category&category2=category&passKeyword=&resultsStart=51

Alan D. Schwartz is CEO now, but I don't see him listed.

[gristy]

24. OK, I found the detail on Schwarz

http://www.forbes.com/finance/mktguideapps/personinfo/FromPersonIdPersonTearsheet.jhtml?passedPersonId=939962

2007
Salary $250,000
Bonus $16,237,150
Stock options held: $52,907,900

[muriel_volestrangler]

22. Now on Reuters too:

NEW YORK (Reuters) - JPMorgan Chase & Co said on Sunday it would buy troubled rival Bear Stearns for about $2 a share in an all-stock deal, and that the Federal Reserve would fund up to $30 billion of Bear Stearns' less liquid assets.

In a statement, JPMorgan said it would exchange 0.05473 shares of its stock for one share of Bear Stearns' stock. It is guaranteeing the trading obligations of Bear Stearns and its subsidiaries.

http://www.reuters.com/article/topNews/idUSN1438968020080316

[IndianaGreen]

23. I wonder how the market will react

Seems like we are paying Peter to pay Paul. The underlying problem of bad loans and margin calls still remains.

[muriel_volestrangler]

38. Tokyo opens its markets in 4 minutes

Hey , I get to issue the 4 minute warning!

I honestly don't know what this would do to Japanese banks or other companies, though. British banks are fairly heavily involved in the US market, though - they could be interesting in 8 hours time (and, of course, my pension depends partly on the UK stock market :( )

[IndianaGreen]

43. I didn't know you were a mod

I missed seeing your posts around here. Now I know why.

[muriel_volestrangler]

46. Yeah, it takes up a lot of the time available for DU

and I occasionally have to bite my tongue, too ... :evilgrin:

[jmowreader]

85. I'll tell you exactly how they'll react

Last week, someone in the Lounge posted a link to the Top 10 Weirdest Scientific Papers Ever. One of them was on projectile defecation in penguins. Something about how a penguin could squirt shit four feet, or something like that.

Well, the market's gonna look like that penguin, except the distance will be measured in miles.

Two bucks a share--as a Stock-Only Transaction, no cash at all--is gonna hurt REAL bad.

[gristy]

25. NOT A TYPO?????????? $2/share????

:wow:

[Karenina]

32. Deregulation? BWHAHAHA!

:rofl:

PLEASE KEEP THIS THREAD KICKED!!!
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3224977&mesg_id=3224977

[Rick Myers]

27. At $2 a share, I'll buy a chunk!!!

[gristy]

29. Best look at their balance sheet first!

[ConcernedCanuk]

31. "roughly a 98.8 percent discount to its book value as of Feb. 29." - now I call that a CRASH

.
.
.

"The announcement from both the Fed and JPMorgan comes ahead of what some analysts expected to be a brutal day for global stocks. Already, before the announcements, New Zealand's markets opened drastically lower — then began to recover after the deal was unveiled.

A collapse of Bear Stearns could have created a further crisis of confidence in world financial markets amid a deepening credit crunch. JPMorgan's acquisition of Bear Stearns represents roughly 1 percent of what the investment bank was worth just 16 days ago.

The deal represented a 93.3 percent discount to Bear Stearns' market capitalization as of Friday, and roughly a 98.8 percent discount to its book value as of Feb. 29.

more

A song comes to mind from the 70's

We've only just begun

"We've only just begun to live, White lace and promises A kiss for luck and we're on our way. "


hmmmm

[gristy]

33. Asian markets open soon

Results shown right now are Friday's close. http://finance.yahoo.com/intlindices?e=asia

[Joanne98]

37. UPDATE 1-Japan stocks may fall as credit worries spread

TOKYO, March 17 (Reuters) - Japanese stocks may fall on
Monday as credit worries spread following last week's emergency
rescue of U.S. investment bank Bear Stearns (BSC.N: Quote, Profile, Research), with a
stronger yen seen weighing on exporters such as Toyota Motor Corp
(7203.T: Quote, Profile, Research). But the dollar began to climb after JPMorgan Chase (JPM.N: Quote, Profile, Research)
announced that it was acquiring Bear Stearns and the Federal
Reserve cut its discount rate. One stock to watch is Hitachi Ltd (6501.T: Quote, Profile, Research), which said on
Friday it would fall into a net loss for the year ending this
month, compared with its previous forecast of a net profit, hit
by the sluggish performance of its TV operations. "The fact that Bear Stearns ended up in that situation makes
the market inevitably wonder if there are more banks like that
out there, worsening credit fears," said Yutaka Miura, senior
technical analyst at Shinko Securities. "If the dollar manages to recover to the 99 yen level, stocks
could rebound a bit as well. But otherwise they're looking to
test the downside, perhaps break below 12,000." The Nikkei was expected to range from 11,900 to 12,400, with
defensive shares likely to be bought amid otherwise general
selling. The Nikkei closed on Friday at 12,241.60, its lowest
since Aug. 10, 2005. In a sign of how the market may move, Nikkei futures traded
in Chicago 2NKc1 finished at 12,110 on Friday compared with
12,200 in Osaka JNIc1.
----------------------MARKET SNAPSHOT @ 2252 GMT ------------

http://www.reuters.com/article/marketsNews/idCAT24442820080316?rpc=44

[ConcernedCanuk]

58. ASIA is open now, dropping close to 3 percent - your link updates every few seconds

.
.
.

http://finance.yahoo.com/intlindices?e=asia

at this moment

All Ordinaries 5,155.50 9:16PM ET 133.00 (2.51%) <<<< (down)

That link's a keeper

good one

edit to add Nikkei 225 11,851.23 8:58PM ET 390.37 (3.19%) <<< down

[w8liftinglady]

60. are the Asian stocks dropping so fast because they own so much of our debt?

[muriel_volestrangler]

64. Or because lower US interest rates weaken the dollar

which mean Japanese exports to the US become more expensive, which means their volume will decrease, so Japanese firms will sell less goods.

[Joanne98]

35. Futures are up Fed is cutting 25% today and 75% Tuesday

It's another dead cat bounce!!!!!!!!

US STOCKS-Index futures rise after Fed cuts discount rate

NEW YORK, March 14 (Reuters) - U.S. stock index futures rose on Sunday evening after the Federal Reserve unexpectedly cut the discount rate and said it will begin allowing primary dealers on Wall Street to borrow at the discount rate.

S&P 500 futures SPc2 rose 5.3 points and Dow Jones industrial average futures DJc2 rose 84 points. Nasdaq 100 NDc2 futures rose 5 points. (Reporting by Chris Sanders; Editing by Tomasz Janowski)
http://www.reuters.com/article/marketsNews/idUSN1650554520080316?rpc=44

[OilemFirchen]

45. Oops..

S&P down 9.40 as of 19:52
DJI down 43.00 as of 19:47

[OilemFirchen]

47. D'oh!

S&P down 11.20 as of 19:56.

[OilemFirchen]

39. Fuck the "free" markets, eh?

1) Obviously, BSC is insolvent and JPM and the Fed knew it, without notifying the BSC shareholders, fund managers, et al.

2) No competitive bidding? A whirlwind weekend auction with one bidder?

3) Screw antitrust laws. One of the largest banks in the world takes under another, with rapid gummint approval? No hearings?

If I were a betting man, which I am, I'd see a tell here: The financial markets are done for.

[OilemFirchen]

44. Oh, and the Fed does a Sunday cut?

Couldn't be to offset a crash related to their approval of a multi-billion dollar loss in BSC's market cap could it?

Collusion? What collusion?

[lonestarnot]

41. Just heard they did buy!

Yikes. Peee UUUUUU!

[DainBramaged]

48. I just woke up, this isn't a nightmare, is it?

Just another WTF moment in the Booshe misAdministration. They will strip the meat from the bones of this economy before he leaves office, just to leave it a shambles for the Democrats.

[file83]

76. Nope this is real. The Robber Barrons are BAAAAAAAAAACK!!!!

And they are going to buy all of us for pennies on the dollar.

[Joanne98]

49. Bloomberg LIVE Quotes futures - Naz down 32 / Dow Down 155/ S & P down 20 @ 8:09 est

[sarcasmo]

51. Will it be a Monday free fall at the Exchange? My crystal ball says, Yes.

[Joanne98]

53. Futures are a sea of red.........

http://www.bloomberg.com/markets/stocks/futures.html

[Deny and Shred]

54. I got home, saw the $2/share headline, and put my thoughts

down in this thread.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x36300

And I just have to ask - where is the SEC? Thank goodness they locked up Martha, and let this sort of thing go unabated.

[NashVegas]

61. Fuck! Look! L00K!! at The Shorts

Financial Services
Betting Against Bear
Liz Moyer, 03.12.08, 6:00 AM ET

Somewhere out there, some options speculator thinks Bear Stearns' stock, which closed at $62.30 in Tuesday trading on the New York Stock Exchange, will be below $10 by July.

That is a spectacular long-shot bet, but heavy if more modest bets against the Wall Street investment bank have been piling on for days in the options world. The number of puts, which is a bet the stock price will fall, is nearly three times as high as calls, a bet the stock will rise.

Options traders don't seem to believe Bear Stearns' (nyse: BSC - news - people ) denial of speculation about its financial health. "There is absolutely no truth to the rumors of liquidity problems that circulated today in the market," the company said late Monday. President and Chief Executive Alan Schwartz said "Bear Stearns' balance sheet, liquidity and capital remain strong."

The message was backed up by U.S. securities regulators on Tuesday. Securities and Exchange Chairman Christopher Cox said that capital adequacy at the five largest U.S. investment banks was being closely watched. "We have a good deal of comfort about the capital cushions that these firms have been on," he said, including Bear.

http://www.forbes.com/2008/03/11/bear-stearns-liquidity-biz-wallst-cx_lm_0311options.html?partner=yahootix

[muriel_volestrangler]

62. And the award for Investor of the Year goes to: Joe Lewis

JOE LEWIS, the secretive British billionaire, has lost an estimated $800m in the collapse of the American investment bank Bear Stearns.

The 71-year-old currency trading tycoon, who runs his empire from the Bahamas, holds almost 10% of the bank's shares. Bear’s shares fell 40% on Friday to $27, after it secured a 28-day credit lifeline to stave off collapse.

Lewis began building a stake in Bear last September, when the shares were changing hands for more than $100.

The huge paper losses could force Lewis to sell out of some of his other positions, according to traders, in order to meet margin calls from his lending banks.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3558485.ece

So that should be over a billion dollars, by now.

[creeksneakers2]

63. JP Morgan saved America from the 1907 panic

Hope it works this time.

[Beartracks]

66. Why is this important...?

I thought we were just supposed to worry about keeping the Ten Commandments on our courthouse lawns, and keeping gays from getting married. Wouldn't those things have prevented all this?

:sarcasm:, of course...

[mcollier]

68. Fed Bail Out....

The Corp Buy out... Modern day Robin Hood in reverse.... Steal from the US Tax Payer and give to the Rich Corporations... Why is it so hard for Americans to see white collar crimes as these?

[Earth Bound Misfit]

73. I read somewhere that Bear employees own 30%

of the company's stock--roughly 40,000,000 shares----which lost 96% of its value in 2 FRIKKIN DAYS, OMG, my heart goes out to them--not the a$$holes at the top of the corporate ladder, f%#k them, but the little guys who just lost a big chunk of their retirement money, or worse.

[Vinca]

78. Wow - the bread line will be getting longer. nt

[4dsc]

79. Will there be a run on banks stocks today??

That is the question we all need to be asking today.. Is it worth anything to the average American that the FED bailout these speculators??

[muriel_volestrangler]

82. European bank stocks down around 10%; Lehman Bros. down 30% in pre-trading

European bank shares have been hit. UBS plunged 13.1%, Societe Generale fell 9.1%, Commerzbank was down 7.9%, and HBOS slumped 9.8%.

US banks were hammered in pre-market trading, with Lehman Brothers down 30%.

http://news.bbc.co.uk/1/hi/business/7300017.stm

Those European banks mentioned there are also 'commerical banks' - a lot of their business is 'true banking' - ie running accounts for people and businesses, and making normal loans to them. It's the investment banks, like Bear Stearns, who may be in for a big shock - when a large part of their recent business turns out to have been wishful thinking and dubiously-valued loans made by other people.

[mainegreen]

81. Hot damn! Some people lost their pant on this!

And their homes, their cars, their retirements too.

[muriel_volestrangler]

83. See #62 - Joe Lewis may have lost over a billion dollars on this

but he's said to be worth $2.5 billion. Still, losing 40% of your money in a year must hurt a bit.

[AngryAmish]

86. NY Duers, there is going to be an awesome office furniture sale soon

When a company goes belly up they have to sell the office furniture. It is done auction style. It will be posted in the paper soon (in the Chicago Tribune the auctions are in the business section).

Anyway, if you need office furniture I'm sure Bear Sterns has some good stuff. A friend of mine bought stuff from the Arthur Anderson liquidation for something like 12 cents on the dollar. Computers (sometimes w/o harddrives), monitors, desks(honestly you can get a $4,000 desk for like $350 bucks), etc.

Don't get left out!

[NashVegas]

87. Currently Trading at $3.79

JP Morgan has already almost doubled its investment!