Pj568

Bear Stearns Bondholders Win Big

Debt differences? You were probably looking at the parent only statements instead of the consolidated statements. If you use edgar, to to exhibit 13 of the 10-k.

The Deal of the Year: JP Morgan Buys Bear Stearns

Not quite the bargain you indicate when you add in the estimated costs of 6B JPM will incur to pay off BSC liabilities and lawsuits. BSC's creditors and clients are the immediate benefactors. Maybe JPM too but it'll take a few years for that to play out.

What's In Store for Bear on Monday?

Although the purchase cost is 236M, 6B is the estimated cost of the liabilities being assumed by JPM.

Why JPMorgan Should Buy Bear Stearns

The result is now in, JPM buys Bear at $2.00 per share.

Why JPMorgan Should Buy Bear Stearns

If JPM wasn't willing to put their own money at risk in a lending transaction why would anyone think there would be an interest in buying the company. Maybe selected assets or people but why a company with an unlimited/undeterminab... downside risk.

Negative Basis Trades: Far Worse for Banks than Monolines

Why the new term, isn't this just continuing to "mark to market" when the value of an investment is declining? One would think that this is not a new danger but one previosly considered in discussions of the effects of monolines losing their current ratings.

Is There A Bull Case for U.S. Financials?

Chris. My first thoughts were that yes the Moody's comment is self-serving and "BS" to your comments of advanced risk warnings being made. However I did go to the IRA website and browsed the article catalog where I found several dealing with everything that is currenly imploding, i.e. hedge fund leverage, credit risk, CDOs, subprime, regulatory issues, etc dating back several years. Good Stuff. Impressive.

Bear Stearns Looking Decidedly Cheap

When BSC is less than book it does make you wonder whether its future reserve losses, decreases in future earnings power or anticipated dilution events that lie behind the market sentiment.

For CFC you have to wonder when, not if, a FDIC takeover will occur. They seem to be borrowed to the max and paying premium rates for deposits. CFC and WM (the adjustable rate mortgage kings) both have all those B's of individual mortgages held in portfolio that get written down based on delinquencies instead of marked to market like CDO debt securities. So they should incur increasing reserve losses and decreasing revenue recognition as the year progresses.

Counterparty Risk and the Subprime Fiasco

Does this mean that Goldman Sachs actually has a huge potential risk remaining since their acknowledged subprime hedge policy was accomplished via the CDS market? Will companies now start disclosing who their swap counter parties are?