Earth_First
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Mon Mar-17-08 05:40 PM
Original message |
Bear Stearns Manhattan headquarters part of JPMorgan deal |
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Bear Stearns does own it's building, which means JP Morgan is getting a huge piece of midtown real-estate as part of the deal.
Estimated value of the property: 1 billion. :wow:
Just heard on NBC Nightly News.
p.s. Please don't shoot the messanger
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bicentennial_baby
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Mon Mar-17-08 05:42 PM
Response to Original message |
1. Yes, and I heard that even if shareholders vote no on the deal |
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JPM would still get the bldg. I'm not sure why. :shrug:
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aquart
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Mon Mar-17-08 05:46 PM
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2. If they vote no? What happens then? |
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The company defaults on its obligations and everybody loses everything?
Or...?
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bicentennial_baby
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Mon Mar-17-08 05:52 PM
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3. I doubt that they will vote no, but if they did |
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they would have to file for bankruptcy and the dominoes would tumble throughout the economy. Hence the bailout.
As much as I disagree with the bailout, the alternative would be far worse, as far as I can see. Not sure how the moral hazard aspect will work out, doubt future collapses can all be bailed out. We shall see...
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Clear Blue Sky
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Mon Mar-17-08 05:53 PM
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Agree that a bailout is the best alternative. Bankruptcy would be far worse and destabilizing in the short and long term
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northzax
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Mon Mar-17-08 05:59 PM
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bear is a whole heck of a lot more than a billion in the hole, and no one will do business with them, since even wall street is about short term credit, would you sell them something without cash in advance? Jpmorgan chase negotiated the fed deal taking twenty billion in bad paper off the books, that deal falls through and bear can't order coffee for a meeting. A billion dollar building ain't worth much if you can't keep the lights on
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LSdemocrat
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Mon Mar-17-08 05:53 PM
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4. Makes you wonder just how craptastic their actual financial holdings must be |
northzax
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Mon Mar-17-08 06:04 PM
Response to Reply #4 |
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if you lose 95% of your net worth in 72 hours and are only worth that if the Feds take $20billion in bad paper off your hands. Morgan got a bit of a deal, but it could still go farther south. And it wasn't just the actual financials, it's that no one would extend them any credit at all, you can't purchase or sell securities if you can't get credit.
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Sun May 05th 2024, 03:33 PM
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