Bear Stearns

NEW -> Contingent Buyer Assistance Program
According to the article from Minyanville.com that I posted earlier in this thread, in November they had a total of $20 billion in Level III Assets. As for liabilities, <a href="http://finance.yahoo.com/q/ks?s=BSC">looking at Yahoo,</a> they had 267 billion in cash and 229.5 billion in debt at the end of last fiscal year (end of November 2007)
 
WINEX - I have mucho respect for Minyanville, (and am very jealous of your subscription), but neither minyanville nor anybody else has a clue as to what Bear Stearns, JPM, Lehman, Citi, etc, are holding off balance sheet. And I would tend to guess that off balance sheet is where they hold the majority of their crap.
 
Eva, the new Fed lending facility was announced but not open until March 27th. So close and yet so far!



I find it interesting that the Fed has given discount window access to the big brokers on an emergency basis - but Bear either wasn't allowed it or was too far gone for it to be useful. Yet Lehman, which is as far into MBS as Bear, is still around (for the moment, at least).
 
<p>Surely Bear didn't own it free and clear?</p>

<p>Why is Bear trading out just under 4 if it's been sold at 2? In fact, why is it being allowed to trade at all?</p>
 
<p>If they veto the deal, they will end up with nothing. Filing for bankruptcy will expose not just the problems with BSC but, by extension, every other bank worlwide that has any leveraged investments, any MBS, and any derivitive exposure. Publication of that information would be like turning on a light in a room full of cockroaches gorging on a corpse.</p>

<p>Enjoy your lunch.</p>
 
Yeah... I just checked a April 2006 Bear Stearns MBS deal, and I nearly threw up, but the amount in foreclosure, BK, and REO is at 23%. I have seen New Century deals that are not that ugly. I checked another April 2006 Bear deal, and the foreclosure, BK and REO amount is at 25%. How about their April 2007 deal? Yup, 13% is in foreclosure, BK, and REO, and 13% is 30 days or 60 days late. OMG, their ALT-A March 2007 deal, has 16% in foreclosure, BK, and REO.





I checked CFC to compare their garbage to Bear's garbage, and if CFC is toxic waste, then Bear is the freakin H-bomb.





I also checked Deutsche Bank and IndyMac, and they are not even at 1/3rd of the delinquency rates of Bear.





So, if their garbage is trading at 60-70 cents on the dollar, and Bear's garbage is twice to three times as bad, what would their garbage be trading at? The run on Bear was just the sealing of the coffin, it was their MBS that killed their liquidity. Someone woke up, and saw how bad their MBS really was.
 
<p><em>Filing for bankruptcy will expose not just the problems with BSC but, by extension, every other bank worlwide that has any leveraged investments, any MBS, and any derivitive exposure.</em> </p>

<p>Doesn't this give the shareholders some leverage then? Sweeten the deal or the shareholders will scuttle it. For $2/share I would gladly tell BSC and JPM to take a flying leap.</p>
 
<p>Me too. And how can they think that guy who just invested a billion bucks is gonna just take it?</p>

<p>Maybe part of the 6 bil is to appease him and pay him back some.</p>
 
<p>New Century was doing subprime and 80/20's, Indymac was doing Option Arms. Well, BS was riding the pony and doing 80/20 Option Arms. They were the only lender to provide this and now we see how ridiculous this program was. </p>
 
Nude, even a Bear shareholder who agreed with you might be willing to play chicken with JP Morgan and the Fed to increase their buyoff. But most Bear shareholders are obviously people not expecting the 40% losses needed for Bear's 32 Billion in MBS to wipe out the 12 billion in equity. Otherwise they wouldn't be Bear shareholders! They *think* a BK Bear is worth more than 250 million even if it isn't.
 
<p>Schenfreude for underwater homeowners...</p>

<p><a href="http://biz.yahoo.com/rb/080317/bearstearns_mood.html">http://biz.yahoo.com/rb/080317/bearstearns_mood.html</a></p>

<p>NEW YORK (Reuters) - Shocked Bear Stearns (NYSE:BSC - News) employees trudged into work Monday morning desperately seeking clarity on their futures.





The fact that the first person they met on entering their headquarters in midtown Manhattan was a salesman hawking cheaper apartments did little to lift their mood -- an ironic twist, perhaps, given that it was risky speculation in the housing market that got the bank into trouble in the first place.


...</p>

<p>At the Madison Avenue entrance, Ray Schmitz, a Realtor with Coldwell Banker, was betting that with the value of their stock options in tatters, Bear's employees might soon be looking to trade their luxury homes for something a little easier on the budget. </p>

<p>"You have to go where the business is," Schmitz said as he handed out business cards. "A lot of these people are going to lose their jobs, and most of their wealth will have been in share options. They're soon going to be looking for a cheaper place to live." </p>

<p><a href="http://www.nytimes.com/2008/03/17/opinion/17krugman.html?_r=1&scp=1&sq=krugman%2C+bear&st=nyt&oref=slogin">http://www.nytimes.com/2008/03/17/opinion/17krugman.html?_r=1&scp=1&sq=krugman%2C+bear&st=nyt&oref=slogin</a></p>

<p>Nobody expects an investment bank to be a charitable institution, but Bear has a particularly nasty reputation. As Gretchen Morgenson of The New York Times reminds us, Bear “has often operated in the gray areas of Wall Street and with an aggressive, brass-knuckles approach.” </p>

<p>Bear was a major promoter of the most questionable subprime lenders. It lured customers into two of its own hedge funds that were among the first to go bust in the current crisis. </p>
 
<p>Images of the day...</p>

<p><img alt="" src="http://img802.mytextgraphics.com/photolava/2008/03/17/bearstearns2dollarbill-49vb0r1cn.jpeg" /></p>

<p><img alt="" src="http://img702.mytextgraphics.com/photolava/2008/03/17/bearchart-49vb1jjna.gif" /></p>
 
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