Bear Sells for $2 a Share
J.P. Morgan agreed to buy Bear Stearns for $2 a share in a stock-swap transaction. The deal values Bear Stearns at just $236 million. At the end of Friday, Bear's stock-market value was about $3.54 billion.
Yeah, and the day before that, it was $7 billion.http://online.wsj.com/article/SB120569598608739825.html?mod=hpp_us_inside_today
Lessons, anyone? 1) don't accidentally thumb up a bank these days, as I did with Bear last week.2) These banks with lousy balance sheets are nearly worthless. This is gonna get very very ugly very very quickly.Nice work by all those politicians and jokers like Ben Bernanke, who did nothing
while these Wall Street screwballs built up these giant Ponzi schemes -- oops, I mean, created the miracle of "structured finance" -- over the past half decade.And how long until the CEO from Bear is being led through the streets in chains?, taking cabbages and tomatoes on the chin? He deserves it. Last week he was flat-out lying, saying Bear's balance sheet was fine. If that's not fraud, then there's no such thing. If he gets away with it because "Bear was too big to have to tell the horrible truth," then Lord help any of us who invest in this new banana republic.Sj