Use access key #2 to skip to page content.

Here's the Problem with Corporate Welfare

Recs

16

March 24, 2008 – Comments (7)

J.P Morgan thinks of raising Bear Bid to $10?

Utterly unthinkable without the $30 billion in  taxpayer-funded guarantees. Remember, even with those promises, no one else was willing to pay more than ZERO for Bear's equity.

Bernanke is rumored to be trying to squish this re-negotiation. He should. Bear's equity holders don't deserve a taxpayer-backed buyout at $10. They'll were lucky to get $2. The alternative was zero.

 

7 Comments – Post Your Own

#1) On March 24, 2008 at 9:25 AM, Gemini846 (45.93) wrote:

Is there ANY economic incentive for the entire country (or at least the ones that pay taxes) for us to pad those shareholders?

Maybe JPM should issue some PFD stock or JPM warrents to the BSC employees that make under 75k/yr and flush the rest of it.

Report this comment
#2) On March 24, 2008 at 9:48 AM, dwot (40.10) wrote:

This is so disgusting.

Report this comment
#3) On March 24, 2008 at 10:32 AM, GS751 (27.54) wrote:

i know wtf.  Lets see if it explodes.

Report this comment
#4) On March 24, 2008 at 10:32 AM, TMFDeej (99.23) wrote:

I couldn't agree with you more, Seth.  When I heard this news this morning I was just as blown away as when I heard the original $2 price.  I understand possibly throwing the employees of Bear a bone to keep everyone from jumping ship, but five times the original deal price because of a single line in the countract?  Come on.  If I was Jamie Diamon I would tell Bear "Go screw yourself.  You would have gone completely out of business if I hadn't bailed you guys out.  If you don't want to accept the $2/share offer then the deal's off and oh by the way get out of JP Morgan's sweet new headquarters and find someplace else to go."

Deej

Report this comment
#5) On March 24, 2008 at 10:42 AM, Gtrinvestor (99.72) wrote:

What really gets me is that there must have been some type of insider info on this for people to be so committed to buying the stock at 2 1/2 times the original $2 / share offer price last week, and now $10 / share ?!?  This whole thing oozes malfeasance.

My guess is that all the wrong people lost (retails investors) and made money (BSC management that made agregious bonuses for the past 5 years and insiders that traded on this stocks fall and blip at the end) on this stock.    

I'm waiting for the ultimate fall-out, whistle-blowing and of course the obligitory hard back book that will come out when it is all said and done. 

Report this comment
#6) On March 24, 2008 at 12:47 PM, Tastylunch (29.45) wrote:

This is complete BS! I don't know if you've seen the latest headlines Bent but the FED totally caved and rubber stamped the deal. What a crock.

Report this comment
#7) On March 26, 2008 at 12:10 AM, FleaBagger (28.21) wrote:

I've heard that a lot of the shareholders were employees who were compensated with stock that they were restricted from selling for however many months or years. But then again, they signed on for that form of compensation, and less than a year ago they thought they were geniuses for it.

Report this comment

Featured Broker Partners


Advertisement