Mark Moran

JP Morgan To Buy Bear Stearns For $2/Share

Is JPM simply a stalking horse ? Bankruptcy wasn't a viable option because the Bankruptcy Code, as recently amended, would have allowed many of Bear's counterparties to seize collateral. For Bear not to fully implode, it needed a deep pocket to step into its shoes by tonight. JPM was the only one that could move that quickly, and even they could only do it with some support from the Fed. But now that the emergency crisis is over, when the smoke clears, are some of the other bidders at the table going to get together and bid higher ?