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

[ltokuda]

golfgal – thanks for the links. The WSJ article was especially informative and answered a lot of my questions.

In the article, a senior treasury official comments that a year ago, confidence in the financial market was high enough that the Fed probably would have let BSC fail. But given the lack of confidence in the market today, the Fed felt that BSC’s bankruptcy could lead to something catastrophic. So its not as if BSC is “too big to fail”. Its more about avoiding the psychological straw that will break the camel’s back.

These comments lead me to the following conclusion: The Fed’s move to bail out BSC was really a symbolic gesture to calm everyone’s fears. They’re sending the message that the investment banks will be kept safe and there’s no need to pull your money out of them. By making these assurances, they hope to avoid a market panic, leading to runs on all the investment banks.

[kewp]

I guess if i don’t use this, I’m going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn’t.

[kewp]

I guess if i don’t use this, I’m going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn’t.

[kewp]

I guess if i don’t use this, I’m going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn’t.

[kewp]

I guess if i don’t use this, I’m going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn’t.

[kewp]

I guess if i don’t use this, I’m going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn’t.

[Coronita]

 

I guess if i don't use this, I'm going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn't.

It's not "after tuesday" yet 🙂 Still considering. I'll probably wait a few days to see if we continue to a have a pop in the market. LEH had interesting "earnings". And no I'm not a pro. But, it might as well be easy come, easy go 🙂

Some trivial facts to make light of the situation.

 

The irony of this deal I thought was interesting….

….JPM acquires Bear Stearns for $250 million…..

….In other news, AOL acquires Web 2.0 company Bebo for $850 million.

 

If that's not kicking someone in the groin, I don't know what is.

(Yeah yeah, I know. JPM is assuming a lot of doggy debt. But I just found that to be pretty ironic).

Screw Yahoo, Microsoft should just take over the banking industry. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

 

I guess if i don't use this, I'm going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn't.

It's not "after tuesday" yet 🙂 Still considering. I'll probably wait a few days to see if we continue to a have a pop in the market. LEH had interesting "earnings". And no I'm not a pro. But, it might as well be easy come, easy go 🙂

Some trivial facts to make light of the situation.

 

The irony of this deal I thought was interesting….

….JPM acquires Bear Stearns for $250 million…..

….In other news, AOL acquires Web 2.0 company Bebo for $850 million.

 

If that's not kicking someone in the groin, I don't know what is.

(Yeah yeah, I know. JPM is assuming a lot of doggy debt. But I just found that to be pretty ironic).

Screw Yahoo, Microsoft should just take over the banking industry. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

 

I guess if i don't use this, I'm going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn't.

It's not "after tuesday" yet 🙂 Still considering. I'll probably wait a few days to see if we continue to a have a pop in the market. LEH had interesting "earnings". And no I'm not a pro. But, it might as well be easy come, easy go 🙂

Some trivial facts to make light of the situation.

 

The irony of this deal I thought was interesting….

….JPM acquires Bear Stearns for $250 million…..

….In other news, AOL acquires Web 2.0 company Bebo for $850 million.

 

If that's not kicking someone in the groin, I don't know what is.

(Yeah yeah, I know. JPM is assuming a lot of doggy debt. But I just found that to be pretty ironic).

Screw Yahoo, Microsoft should just take over the banking industry. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

 

I guess if i don't use this, I'm going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn't.

It's not "after tuesday" yet 🙂 Still considering. I'll probably wait a few days to see if we continue to a have a pop in the market. LEH had interesting "earnings". And no I'm not a pro. But, it might as well be easy come, easy go 🙂

Some trivial facts to make light of the situation.

 

The irony of this deal I thought was interesting….

….JPM acquires Bear Stearns for $250 million…..

….In other news, AOL acquires Web 2.0 company Bebo for $850 million.

 

If that's not kicking someone in the groin, I don't know what is.

(Yeah yeah, I know. JPM is assuming a lot of doggy debt. But I just found that to be pretty ironic).

Screw Yahoo, Microsoft should just take over the banking industry. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

 

I guess if i don't use this, I'm going to do a double or nothing and put it all into shorting LEH after tuesday.

Please say you didn't.

It's not "after tuesday" yet 🙂 Still considering. I'll probably wait a few days to see if we continue to a have a pop in the market. LEH had interesting "earnings". And no I'm not a pro. But, it might as well be easy come, easy go 🙂

Some trivial facts to make light of the situation.

 

The irony of this deal I thought was interesting….

….JPM acquires Bear Stearns for $250 million…..

….In other news, AOL acquires Web 2.0 company Bebo for $850 million.

 

If that's not kicking someone in the groin, I don't know what is.

(Yeah yeah, I know. JPM is assuming a lot of doggy debt. But I just found that to be pretty ironic).

Screw Yahoo, Microsoft should just take over the banking industry. 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Ex-SD]

Volcker questions Fed’s Bear Stearns bailout
(From the LA Times Real Estate Blog by Peter Viles)

Former Fed Chairman Paul Volcker is raising questions about the Fed’s rescue of Bear Stearns.

Volcker’s chief questions: Why is the Fed rescuing a non-bank that it does not regulate? Isn’t that a job for Congress? Why is the Fed guaranteeing bad loans? The Fed regulates — and lends to — banks, not investment houses.

Volcker calls the Bear bailout “… a new departure. And at some point, the government ought to — in my view, the government ought to be taking responsibility for that kind of action, not the Federal Reserve, which is an independent agency designed to provide an ample supply of liquidity to the economy but not too much, protect against inflation, not to protect particular sectors of the economy from bad loans.

In other words, rescuing companies other than banks, and guaranteeing bad loans, is a job for Congress and the White House. You want to bail out Carlyle Capital, or Chrysler or K-Mart? Go ahead, knock yourself out. Just don’t ask the Fed to do it, because it’s not their job.

Of course, potentially catastrophic failure was imminent and the Fed evidently felt it couldn’t wait. Volcker: “… They stepped into a vacuum, and I think quite appropriately, it’s a judgment they had to make. But is this what you want for the longstanding regulatory support system? My answer is no.”

[Ex-SD]

Volcker questions Fed’s Bear Stearns bailout
(From the LA Times Real Estate Blog by Peter Viles)

Former Fed Chairman Paul Volcker is raising questions about the Fed’s rescue of Bear Stearns.

Volcker’s chief questions: Why is the Fed rescuing a non-bank that it does not regulate? Isn’t that a job for Congress? Why is the Fed guaranteeing bad loans? The Fed regulates — and lends to — banks, not investment houses.

Volcker calls the Bear bailout “… a new departure. And at some point, the government ought to — in my view, the government ought to be taking responsibility for that kind of action, not the Federal Reserve, which is an independent agency designed to provide an ample supply of liquidity to the economy but not too much, protect against inflation, not to protect particular sectors of the economy from bad loans.

In other words, rescuing companies other than banks, and guaranteeing bad loans, is a job for Congress and the White House. You want to bail out Carlyle Capital, or Chrysler or K-Mart? Go ahead, knock yourself out. Just don’t ask the Fed to do it, because it’s not their job.

Of course, potentially catastrophic failure was imminent and the Fed evidently felt it couldn’t wait. Volcker: “… They stepped into a vacuum, and I think quite appropriately, it’s a judgment they had to make. But is this what you want for the longstanding regulatory support system? My answer is no.”

[Ex-SD]

Volcker questions Fed’s Bear Stearns bailout
(From the LA Times Real Estate Blog by Peter Viles)

Former Fed Chairman Paul Volcker is raising questions about the Fed’s rescue of Bear Stearns.

Volcker’s chief questions: Why is the Fed rescuing a non-bank that it does not regulate? Isn’t that a job for Congress? Why is the Fed guaranteeing bad loans? The Fed regulates — and lends to — banks, not investment houses.

Volcker calls the Bear bailout “… a new departure. And at some point, the government ought to — in my view, the government ought to be taking responsibility for that kind of action, not the Federal Reserve, which is an independent agency designed to provide an ample supply of liquidity to the economy but not too much, protect against inflation, not to protect particular sectors of the economy from bad loans.

In other words, rescuing companies other than banks, and guaranteeing bad loans, is a job for Congress and the White House. You want to bail out Carlyle Capital, or Chrysler or K-Mart? Go ahead, knock yourself out. Just don’t ask the Fed to do it, because it’s not their job.

Of course, potentially catastrophic failure was imminent and the Fed evidently felt it couldn’t wait. Volcker: “… They stepped into a vacuum, and I think quite appropriately, it’s a judgment they had to make. But is this what you want for the longstanding regulatory support system? My answer is no.”

[Ex-SD]

Volcker questions Fed’s Bear Stearns bailout
(From the LA Times Real Estate Blog by Peter Viles)

Former Fed Chairman Paul Volcker is raising questions about the Fed’s rescue of Bear Stearns.

Volcker’s chief questions: Why is the Fed rescuing a non-bank that it does not regulate? Isn’t that a job for Congress? Why is the Fed guaranteeing bad loans? The Fed regulates — and lends to — banks, not investment houses.

Volcker calls the Bear bailout “… a new departure. And at some point, the government ought to — in my view, the government ought to be taking responsibility for that kind of action, not the Federal Reserve, which is an independent agency designed to provide an ample supply of liquidity to the economy but not too much, protect against inflation, not to protect particular sectors of the economy from bad loans.

In other words, rescuing companies other than banks, and guaranteeing bad loans, is a job for Congress and the White House. You want to bail out Carlyle Capital, or Chrysler or K-Mart? Go ahead, knock yourself out. Just don’t ask the Fed to do it, because it’s not their job.

Of course, potentially catastrophic failure was imminent and the Fed evidently felt it couldn’t wait. Volcker: “… They stepped into a vacuum, and I think quite appropriately, it’s a judgment they had to make. But is this what you want for the longstanding regulatory support system? My answer is no.”

[Author]

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