 Quote:
Originally Posted by RockOn
I just heard on TV that Bear Sterns is going to be sold to JP for $2 a share. I hope I don't have any shares in any of my funds. They closed at $30 on Friday down from $55.
I think there is a solvency problem.  |
the total is around $270 million for a company that owns a building in NYC valued at $1.2 billion.
JPM wants the brokerage and clearing business as well as the clients, but i doubt this deal assumes one client will stay. and i think i read that they don't have to pay the fed back the $30 billion they borrowed. my guess is they will roll over the loan with some of bear's junk assets and call it even. and 10,000 people will probably be out of a job by the end of the week as well as the executives being out of their life savings because most of it was in company stock a la enron
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