Bear Stearns deal must happen by Monday AM

Or else Bear does a bk. The contenders are JPMorgan and J.C. Flowers.

The stress level at Bear among executives whose life savings is tied up in the company’s stock was palpable Saturday as the meetings to determine the value of Bear continued.

The speed at which Bear Stearns imploded is quite staggering. Last Monday, Bear probably quite honestly said they were solvent. But the run on them had already started, and that just accelerated it, probably on the theory that if you have to publicly deny it, then it could be true. Billlions were withdrawn in the next few days.

The problem for a buyer is, Bear owns so much toxic garbage that putting a value on it is difficult at best.

And folks, ignore Greg Palast’s unhinged rant that Eliot Spitzer had to be eliminated because he, noble warrior acting alone, was going to unmask the devious plots of Bush and the Fed to bail out Bear. First off, it wasn’t a bailout, rather a 28 day maximum loan to keep Bear afloat. Second, and most important, it wasn’t a devious plot, but was right out there in the open. Of course they are doing it to prop up the banking system. Duh.


Comments are closed.

Powered by WordPress. Designed by WooThemes