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View Full Version : Bear needs to be renamed the Beast




voytechs
03-17-2008, 10:40 AM
I think the name Beast best describes the new Bear Stearns Company (BSC) best. When you consider that JP Morgan (the original creator of the Federal reserve) just used $30B of tax payers money (to be printed by the fed), to purchase bear while only putting up only $250m of his own money which is pocket change for this guy, you are left with a Bear/Morgan/Fed entity that can only be described as a beast. All it requires is to change one letter "r" into "st".

The fed is going to run the new company, "to protect" fed's investment into billions of $dollars$ of bad loans at our expense. JP morgan gets to keep the new company.

Me thinks this was the plan from the beginning. What a better way to consolidate all the major banks into a couple of big entities (to provide the illusion of diversity) at the taxpayers expense.

I've also heard trolling on CNBC by NY senator Schuman, that we need more regulation of the financial institutions, but we can't currently do that because the banks are so inter-dependent internationally today, that it can't be done currently. That is other countries don't have to honor our laws. So whats the implied next logical step? Bring the rest of the financial world under the same type legislation inorder to prevent such dissasters from occuring in the future (they would never mention the fact that the fed is the one that created this mess, no amount of legislation can fix that). This is the first major step towards the one-world-government.

The writing, is no longer wall, as they say, its becoming a reality.

This is just too convenient for these big bankers. Just think Morgan picked up bear for $250mil while the break up of the company alone is worth $7b, and no risk to him since its all backed by the Feds. $30b in loans secured by bear's bad loans. And consider how many people lost their savings and their entire investments in the last 2 days. There were 200mil shared traded on Friday when bear stock dropped $30 and another 150mil shares today so far when it dropped another $30 to $4 from $60 a few days ago. Thats 200mil shared that were bought by someone, only to find out the fed had just bankrupted them over the weekend. Free-market my ass!! Even the lawsuits that are sure to follow for bear withholding critical financial information from investors over last few months/weeks/days will be met with brick walls, after all the fed is the the big investor now.

Hell, why can't I get a deal like that. I'll settle for 1/1,000,000th of the value of that deal.

torchbearer
03-17-2008, 10:42 AM
how many heads did the beast have?

Original_Intent
03-17-2008, 10:52 AM
how many heads did the beast have?

wow 7 - the same number as the membership of the board of Governors of the Fed Reserve.

edit: changed due to correction by FrankRep.

FrankRep
03-17-2008, 10:58 AM
wow 7 - the same number as their are Federal Reserve banks. Dayum.

12 Federal Reserve banks, not 7.

Original_Intent
03-17-2008, 11:21 AM
12 Federal Reserve banks, not 7.

Sorry, I was counting the membership of the Board of Governors.

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed. A member who completes an unexpired portion of a term may be reappointed. All terms end on their statutory date regardless of the date on which the member is sworn into office.
The Chairman and the Vice Chairman of the Board are named by the President from among the members and are confirmed by the Senate. They serve a term of four years. A member's term on the Board is not affected by his or her status as Chairman or Vice Chairman.

from http://www.federalreserve.gov/aboutthefed/bios/board/default.htm

voytechs
03-17-2008, 11:22 AM
how many heads did the beast have?

Its 12, but 7 board members:


Outline

The structure of the system is outlined by the Chicago Fed:[17] (http://en.wikipedia.org/wiki/Federal_Reserve_System#_note-ourcentbank)
The Federal Reserve System as a whole

The nation's central bank
A regional structure with 12 districts
Subject to general Congressional authority and oversight
Operates on its own earnings Board of Governors

7 members serving staggered 14-year terms
Appointed by the U.S. President and confirmed by the Senate
Oversees System operations, makes regulatory decisions, and sets reserve requirements Federal Open Market Committee

The System's key monetary policymaking body
Decisions seek to foster economic growth with price stability by influencing the flow of money and credit
Comprised of the 7 members of the Board of Governors and the Reserve Bank presidents, 5 of whom serve as voting members on a rotating basis Federal Reserve Banks

12 regional banks with 25 branches
Each independently incorporated with a 9-member board of directors from the private sector
Set discount rate, subject to approval by Board of Governors.
Monitor economy and financial institutions in their districts and provide financial services to the U.S. government and depository institutions. Member banks[16] (http://en.wikipedia.org/wiki/Federal_Reserve_System#_note-dfeverydayecon)

Private banks
Hold stock in the Federal Reserve
Elect six of the nine members of Reserve Banks’ boards of directors.

voytechs
03-17-2008, 02:17 PM
The lawsuites begin:

http://www.bloomberg.com/apps/news?pid=20601087&sid=acq_gGTe8JR8&refer=home

voytechs
03-17-2008, 02:38 PM
Oohh and this is lovely:


Bear Stearns's profit exceeded $2 billion in 2006, yet the price JPMorgan is paying is about one quarter the value of the securities firm's headquarters building in midtown Manhattan. The 1.2 million-square-foot, 45-story structure built in 2001 is worth about $1.2 billion, based on the average $1,000 per-square- foot that comparable office space in the city is currently fetching.

JPMorgan Chief Financial Officer Mike Cavanagh (http://search.bloomberg.com/search?q=Mike+Cavanagh&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) said on a conference call after the sale was announced that the bank was comfortable with the values Bear Stearns had assigned to the mortgage-related assets on its books. Asked to explain why JPMorgan was paying about $2 a share for a company with a book value -- assets minus liabilities -- of $84 a share, Cavanagh said the price reflected the risk the firm was taking.
Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anMNUEv7YGAM

Lucille
03-17-2008, 03:43 PM
``The past week has been an incredibly difficult time,'' Schwartz, 58, said in the statement. ``This transaction represents the best outcome for all of our constituencies based upon the current circumstances.''

Let's go to the insider trading shenanigans (http://moneycentral.msn.com/investor/invsub/insider/trans.asp?Symbol=BSC) of the Bear Stearns' honchos, shall we? Mr. "best outcome" Schwatrz must have had a powerful gut feeling, since he dumped 67000+ shares on Dec. 21 (as did a long list of other BSC's VIPs.)

12/21/07 SCHWARTZ ALAN D Sold 67,900 $89.01 6.04 Mil


Cayne ranked as Wall Street's richest CEO, with $1.3 billion of assets, according to Forbes magazine's 2007 billionaire survey. His stake in the firm approached $1 billion last year when the shares reached their peak price of $170. Under terms of the JPMorgan takeover, his holdings are now worth about $12 million.

Awww. Poor guy! But at least he had the good sense to dump his 172,000+ shares of BSC stock on Dec. 21 which was worth far more than the $2/share that pleb shareholders' stock is currently worth.

12/21/07 CAYNE JAMES E Sold 172,621 $89.01 15.36 Mil