The Wall Street Journal online reports that Bear Stearns agreed to be acquired by J.P. Morgan Chase & Co. for just $2 per share, or roughly $236 million.
That’s an incredible end to a leading Wall Street broker and a company that still has loan servicing operations in Irvine.
The Journal writes:
Bear Stearns had a stock-market value of about $3.5 billion as of Friday — and was worth $20 billion in January 2007. But the crisis of confidence that swept the firm and fueled a customer exodus in recent days left Bear Stearns with a horrible choice: sell the firm — at any price — to a big bank willing to assume its trading obligations or file for bankruptcy.
The Journal also reports the deal is being facilitated by the Federal Reserve which is providing as much as $30 billion in financing for Bear’s “less-liquid” assets, including mortgage-backed securities.
If you’re a paid subscriber to the Journal’s Web site, I strongly recommend the story, just CLICK HERE.
the deal is being facilitated by the Federal Reserve which is providing as much as $30 billion
That must mean that Bear is worth negative $29,764,000,000.00. There is NO WAY our government should be involved in any stock brokerage firm.
This is a crime!
I want my 30 billion dollars back.
JP Morgan owes our government 30 billion dollars.
The FED is not the government. It is a private bank.
Have you ever asked yourself where they get their money? Do you know who owns them? Why do they have a .gov website? If it really is a private bank, who can fire Ben Bernanke?
Time to do some research…Who started the FED? JP Morgan? The FED did a similar move before the depression enabling the bankers to purchase more companies for pennies on the dollar. This is absolutely CRAZY! We have let our economic future be stolen from us!
The fed is private, but the congress has the power to dissolve them. Unfortunately, Congress won’t exercise this power. We need an honest, constitutional monetary policy. Congress (Republicans and Democrats) has failed us for many years now on many issues including this one.
http://www.investmentbinder.com/view-binder?id=kennycud
Good job Shabi!!
Thoughtful had this to say about a Mulliganville post: “Good point about Enron, Mulli. We also have Y2K and the tech bubble (all since 2000). Much ado about little.”
We also had a little thing called 9/11, in 01.
The bearish, knee-jerking reactionaries on this blog look like a deer in headlights over little stuff, that as far as I can see only affected Marcia, who apparently owns Bear Stearns stock. The effect on the rest of us, is about the same, if not less, than the other “earth shattering” events named above. ( well, I’m sure NationalBubble was able to sell a few more “Bubble” books off his doom & gloom website today - so he did ok.)
Hey Marcia, sorry to hear of your loss. Hopefully, you’ve owned property in O.C. since before 2004?