Balance Sheet Checker (BSC)

A Conspiracy to Kill Bear Stearns?

helplessobserver, you may be right, but it is important that the market doesn't percieve that to be the case. If the market buys your arguement then the stability of the deal is put at risk and therefore the stability of the financial system is too (which is how the Fed justified its role in this deal). I believe it is crucial to the Fed that the markets see this is a done deal. If it is a done deal then you truly are a helpless observer (I assume you hold BSC). If it is not a done deal then you just might come out further ahead then you are now. Although I don't think the Fed intended (or intends) to screw BSC shareholders, I also don't think anyone is losing sleep over the prospects of crushing vocal opposition to this deal if they felt the objectors were putting this deal at risk of permanently colapsing before stability is restored in the system. The timing of when markets return to normal will be everything on this one. This is why JP Morgan is rushing the deal through (lock this steal away before stability is here and the deal can be justifiably challenged) and BSC sharholders are fighting for a delay (if enough time can pass they might yet escape from their role as the sacrificial lamb in the All Powerful Fed's quest for permanent financial market stability). The heavy short selling of BSC stock suggests the market doesn't agree with you. They know the Fed won't let them be squeezed because if they were there could be a whole world of trouble.