RMG

Banks Failing To Disclose Derivatives Risk

If the author, with his knowledge and experience, has negative opinion on banks and is shorting them, I should expect that investing in banks is quite risky and if not resorting to shorting, at the least, one should liquidate banks' holdings (shares).

JP Morgan To Buy Bear Stearns For $2/Share

This is a tragedy for investors and emphasizes the need for Federal Government to control the banks and other institutions when it comes to over-leveraging with shareholders' money. Initially I was thinking JP Morgan was taking undue advantage of Bear Stearns situation by offering only $2 /share, but then realized that they are taking lot more risk just to calm the markets. Now they (JPM) will be more leveraged as a result of takeover of Bear Stearns.