JPM offers to buy Bear for $2/shared; Fed cuts discount rate

[zzz]

For those who feel redemption on BSC failing as payback for all the bad loans written- BSC failing is not good for you or anyone else. I assume most of you don’t stuff your dollars under the mattress – so how would you feel if your bank has a run on it and you lack access to cash – anyone know how long before you get your $$ back from FDIC? Or if others started charging you a premium to accept your checks due to the level of risk they feel they are undertaking by accepting a check from your bank? Swap trades were done at a premium last week involving Bear. JPM bought BSC in part due to what a failure would have done to its own balance sheet, and ward off additional counterparty risk. Its not as cheap as the superficial details portrays – this deal will cost $6B estimated in transaction costs to JPM.

BSC “rapid” deterioration was a modern day run on the bank. If Lehman or another bank fails this week- what will it do to the banking sector? There are complex interdependencies amongst all the banks. If everyone suddenly withdrew their cash positions and stopped doing business with their bank- even for a day, as happened throughout the last week at Bear in their institutional business, what do you think will happen? Don’t cheer too loudly if you’re not willing to risk your own $$$s in the bank.

[LA_Renter]

Congratulations on the windfall f_l_u. I am very very envious right now.

[LA_Renter]

Congratulations on the windfall f_l_u. I am very very envious right now.

[LA_Renter]

Congratulations on the windfall f_l_u. I am very very envious right now.

[LA_Renter]

Congratulations on the windfall f_l_u. I am very very envious right now.

[LA_Renter]

Congratulations on the windfall f_l_u. I am very very envious right now.

[maybe]

A 235 million price tag. That’s mind-boggling.

The equivalent of 250 or so 3bd/2ba 1800 sq. ft tract homes in Carmel Valley in 2005…

[maybe]

A 235 million price tag. That’s mind-boggling.

The equivalent of 250 or so 3bd/2ba 1800 sq. ft tract homes in Carmel Valley in 2005…

[maybe]

A 235 million price tag. That’s mind-boggling.

The equivalent of 250 or so 3bd/2ba 1800 sq. ft tract homes in Carmel Valley in 2005…

[maybe]

A 235 million price tag. That’s mind-boggling.

The equivalent of 250 or so 3bd/2ba 1800 sq. ft tract homes in Carmel Valley in 2005…

[maybe]

A 235 million price tag. That’s mind-boggling.

The equivalent of 250 or so 3bd/2ba 1800 sq. ft tract homes in Carmel Valley in 2005…

[cashflow]

Here’s a take on Lehman….”We’re not Bear, and We’re Not Screwed”

http://finance.yahoo.com/tech-ticker/article/7226/Lehman:-We’re-Not-Bear,-and-We’re-Not-Screwed?tickers=leh,bsc

I guess time will tell how liquid they actually are….

[cashflow]

Here’s a take on Lehman….”We’re not Bear, and We’re Not Screwed”

http://finance.yahoo.com/tech-ticker/article/7226/Lehman:-We’re-Not-Bear,-and-We’re-Not-Screwed?tickers=leh,bsc

I guess time will tell how liquid they actually are….

[cashflow]

Here’s a take on Lehman….”We’re not Bear, and We’re Not Screwed”

http://finance.yahoo.com/tech-ticker/article/7226/Lehman:-We’re-Not-Bear,-and-We’re-Not-Screwed?tickers=leh,bsc

I guess time will tell how liquid they actually are….

[cashflow]

Here’s a take on Lehman….”We’re not Bear, and We’re Not Screwed”

http://finance.yahoo.com/tech-ticker/article/7226/Lehman:-We’re-Not-Bear,-and-We’re-Not-Screwed?tickers=leh,bsc

I guess time will tell how liquid they actually are….

[Author]

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