helplessobserver

Financial Landscape: Writedowns, Losses and Capital Raised

Two fin companies not on your list, BBT and BRK. Smart investors soar with the eagles and avoid being the road kill. Sounds like HSBC will soon be spotted on the highway.

Bear Stearns: Follow the Puts

This will turn out to be a much bigger story and will benefit BSC shareholders when much of the shortsellers and put buyers gains are returned to the shareholders.

Why John Paulson Is Still Bearish On Financials [Housing Tracker]

Judy,
The final chapter of BCS is yet to be written. It will take awhile but the courts will order remedies in favor of investors who lost all in the BCS collapse.

Beware the Financials Value Trap

What kind of fools do the business schools turn out these days. Even utilities try to keep their leverage at no more than 50%. Who or what secures income streams for financial institutions?

JPMorgan, Bear Stearns: More Smoke from Wall Street

It ain't over till its over! There is much more to come from the BSC story. Joe Lewis and others will get something big from the Fed and the taxpayers.

The Bloody Knife Used to Gut Bear Stearns?

The final chapter of BSC is a long ways from being written. You don't flush $21B down the drain while large mutual funds and Joe Lewis watches. We taxpayers will foot a big settlement to BSC shareholders.

Why Wall St. Needed Credit Default Swaps

Teriffic article, much too dangerous to publish in the WSJ, but will get there eventually when 500+ down days are the norm.

Fed Bailout of Wall Street: Not Fair to the Commercial Banks

This is an excellent article. How in the world can GS pay employees 27B in compensation?

Sec Filing Prompts More Questions About JPMorgan/Bear Stearns Deal

The final chapter of the whole BSC deal is yet to be written. JPM and us taxpayers will pony up a big settlement to Joe Lewis and the mutual funds that got killed in this deal.

Large OTC Markets + Excessive Leverage + FVA = Systemic Risk

Your comments on short CDS's at hedge funds is right on target. Little posted margin and no capital - simply walk away in bankruptcy. As I watch the red on my financial screen I see the market is also worried.

14 Bank and I-Bank Write-Downs

Here in Fredericksburg, Va, home prices have dropped from $350k to $275k, selling time has increased from 28 days at the peak to 138 today. Realtors report people are walking away from bad loans. Finally Fredericksburg, Va is a prosperous area with tons of govt dough for workers.

BSC Bailout: Fed Prevented a Domino Effect

Lets look at the future. As a result of all this turmoil we will see:
a. all derivative contracts will be moved to and traded on public exchanges
b. margin will be required for sellers of contracts
d. all derivative contracts will be settled in cash
As it now stands counterparty risk is unacceptable. Big players do not have to post margin, other lesser players may have margin waived. Delivery of securities as required in a default event is cumbersome if not impossible.

Bear Collapse: Sifting Through the Rubble for Answers

Herb,
I think the saga of BCS is not over. Future investigations and court rulings will force substantial settlements to BCS shareholders. Arguments that the board approved the sale will be watered down by the crisis enviroment when the decision was made. With the Fed's 30B honey pot out there the lawyers will work to get a big share of it.

The Fed Defends the Indefensible

I think the BSC saga is far from over. It will take a few years but after investigations the courts will order JPM and the Fed to hand over a big settlement to BSC shareholders. The Fed and JPM know this and are telling Joe Lewis and the big mutual fund losers to cool it for awhile. I expect that the $30B the Fed is holding will fund most of this settlement.

A Conspiracy to Kill Bear Stearns?

I suspect that the saga of BSC is far from over. Once investigators and the courts start examining this case patterns of questionable transactions and activities will emerge. Fat cats will get cold feet and BSC shareholders will recover a lot of lost wealth. It will take awhile, but Joe Lewis and the mutual funds will get a lot more than $10 per share.