"I think this is a bridge to a permanent solution," Bear Stearns chief executive Alan Schwartz said during a conference call with investors following the announcement of emergency financing from JP Morgan Chase and the Federal Reserve. But it was a different kind of bridge that was on the mind of Jimmy Cayne, the chairman of Bear Stearns. As Bear shares plunged and Wall Street began to speculate that the bank may not exist as an independent entity by the weekend's end, Cayne was in Detroit, playing in the North American Bridge Championship.
Cayne has been criticized for his aloof leadership style, particularly after the was found to have played bridge and golf, and allegedly smoked marijuana (a charge he denies), during earlier severe crises at Bear back when he was CEO. He resigned in January. But he was, it seems, not so aloof as to remain unaffected by the troubles of the institution where he has worked since 1969. Before yesterday's crisis, Cayne and a partner placed fourth out of 130, the Wall Street Journal reported. Yesterday, however, Cayne's ranking slipped as Bear's shares plummeted. He and his partner slipped to 26th place.
Today's results are not yet available.
Over in the DealBreaker Community forum, a lively discussion about the fate of Bear is continuing.
Happy Saint Patrick's Day.
Posted by guest , Mar 15, 2008 11:32AM
Well, the bridge-playing seems less aberrational now that Alan Schwartz is actually in charge. But I assume Cayne still has power and influence at Bear, and perhaps even some rational advice to offer, and I think he could forgo one bridge tournament.
The marijuana smoking was alleged to have taken place a number of years ago, so I don't know that it has any relevance to the current situation.
Posted by guest , Mar 15, 2008 12:36PM
If BSC chairman is out playing bridge this weekend, there cannot be any deals. Isn't this right?
Posted by guest , Mar 15, 2008 3:24PM
No 12:36, Cayne is a useless mutt. He'll jump on a call for 20min and sign off on whatever he is presented. POS should leave BSC in a fucking bag.
Posted by BruceWayne , Mar 15, 2008 4:23PM
Is Warren Spector playing in the tournament? If so I hope he is kicking Jimmy's ass. Everyone knows that Warren is the better man.
Posted by guest , Mar 15, 2008 8:12PM
Who is going to go to http://www.detroit2008nabc.org/ and give the folks there a call to find out the latest standings?
Posted by guest , Mar 16, 2008 3:33PM
I find this interesting. Suppose Chairman Cayne had a few drinks Friday night, no one would have even noticed. But if he smoked marijuana he is unfocused? Unfit?
Smoke one joint and you are some chain-acid-tripping monster. Drink all night long and drive home, who cares.
People make the weirdest connections when they are looking for news.
Posted by guest , Mar 16, 2008 6:21PM
There is no way in hell Cayne is in Chicago playing Bridge.
Posted by guest , Mar 16, 2008 6:23PM
The article says the tournament is in Detroit. Why do you think Cayne isn't there?
Posted by guest , Mar 16, 2008 6:30PM
It's done. JP Morgan rules NYC.
Posted by guest , Mar 16, 2008 6:33PM
Does the Fed cut 100bps Monday morning instead of waiting until Wed?
Just axeing.
-- Dave Chappelle
Posted by guest , Mar 16, 2008 6:52PM
hahaha...."axeing" --- I love it.
Posted by guest , Mar 16, 2008 6:53PM
@ 6:23PM.
Got me there, I meant to say Detroit.
Detroit, Chicago..same thing.
Posted by guest , Mar 16, 2008 7:00PM
Apparently it's a done deal. Going to be interesting through the night and into tomorrow?
Peace bitches.
-- Dave Chappelle
Posted by guest , Mar 16, 2008 7:01PM
J.P. Morgan to buy Bear Stearns for $2 a share in stock.
-- DC
Posted by guest , Mar 16, 2008 7:08PM
It's done bitches . . . DC
JPMorgan Chase To Acquire Bear Stearns
NEW YORK--(BUSINESS WIRE)--March 16, 2008
JPMorgan Chase & Co. (NYSE: JPM) announced it is acquiring The
Bear Stearns Companies Inc. (NYSE: BSC). The Boards of Directors of
both companies have unanimously approved the transaction.
The transaction will be a stock-for-stock exchange. JPMorgan Chase
will exchange 0.05473 shares of JPMorgan Chase common stock per one
share of Bear Stearns stock. Based on the closing price of March 15,
2008, the transaction would have a value of approximately $2 per
share.
Effective immediately, JPMorgan Chase is guaranteeing the trading
obligations of Bear Stearns and its subsidiaries and is providing
management oversight for its operations. Other than shareholder
approval, the closing is not subject to any material conditions. The
transaction is expected to have an expedited close by the end of the
calendar second quarter 2008. The Federal Reserve, the Office of the
Comptroller of the Currency (OCC) and other federal agencies have
given all necessary approvals.
In addition to the financing the Federal Reserve ordinarily
provides through its Discount Window, the Fed will provide special
financing in connection with this transaction. The Fed has agreed to
fund up to $30 billion of Bear Stearns' less liquid assets.
"JPMorgan Chase stands behind Bear Stearns," said Jamie Dimon,
Chairman and Chief Executive Officer of JPMorgan Chase. "Bear Stearns'
clients and counterparties should feel secure that JPMorgan is
guaranteeing Bear Stearns' counterparty risk. We welcome their
clients, counterparties and employees to our firm, and we are glad to
be their partner."
Dimon added, "This transaction will provide good long-term value
for JPMorgan Chase shareholders. This acquisition meets our key
criteria: we are taking reasonable risk, we have built in an
appropriate margin for error, it strengthens our business, and we have
a clear ability to execute."
"The past week has been an incredibly difficult time for Bear
Stearns. This transaction represents the best outcome for all of our
constituencies based upon the current circumstances," said Alan
Schwartz, President and Chief Executive officer of Bear Stearns. "I am
incredibly proud of our employees and believe they will continue to
add tremendous value to the new enterprise."
The transaction is expected to be ultimately accretive to JPMorgan
Chase's annual earnings.
"This transaction helps us fill out some of the gaps in our
franchise with manageable overlap," said Steve Black, co-CEO of
JPMorgan Investment Bank. "We know the Bear Stearns leadership team
well and look forward to working with them to bring our two companies
together."
"Acquiring Bear Stearns enables us to obtain an attractive set of
businesses," said Bill Winters, co-CEO of JPMorgan Investment Bank.
"After conducting due diligence, we're comfortable with the quality of
Bear Stearns' business, and are pleased to have them as part of our
firm."
"JPMorgan Chase's management team has a strong track record of
effective merger integration," said Heidi Miller, CEO of JPMorgan
Treasury & Securities Services business. "We will work closely in the
coming weeks with Bear Stearns' clients and management to execute the
transaction quickly."
JPMorgan Chase will host a conference call today, Sunday, March
16, 2008, at 8:00 p.m. (Eastern Time) to review the acquisition of
Bear Stearns. Investors can call (800) 214-0745 (domestic) / (719)
457-0700 (international), with the access code 614424, or listen via
live audio webcast. The live audio webcast and presentation slides
will be available on
http://investor.shareholder.com/jpmorganchase/presentations.cfm under
Investor Relations, Investor Presentations. A replay of the conference
call will be available beginning at 11:00 p.m. (Eastern Time) on March
16, 2008, through midnight, Monday, March 31, 2008 (Eastern Time), at
(888) 348-4629 (domestic) or (719) 884-8882 (international) with the
access code 614424. The replay also will be available on
www.jpmorganchase.com.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial
services firm with assets of $1.6 trillion and operations in more than
60 countries. The firm is a leader in investment banking, financial
services for consumers, small business and commercial banking,
financial transaction processing, asset management, and private
equity. A component of the Dow Jones Industrial Average, JPMorgan
Chase serves millions of consumers in the United States and many of
the world's most prominent corporate, institutional and government
clients under its JPMorgan and Chase brands. Information about the
firm is available at www.jpmorganchase.com.
The Bear Stearns Companies Inc. (NYSE: BSC) serves governments,
corporations, institutions and individuals worldwide. The company's
core business lines include institutional equities, fixed income,
investment banking, global clearing services, asset management, and
private client services. For additional information about Bear
Stearns, please visit the firm's website at www.bearstearns.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements about the
benefits of the merger between J.P. Morgan Chase & Co. and The Bear
Stearns Companies Inc., including future financial and operating
results, the combined company's plans, objectives, expectations and
intentions and other statements that are not historical facts. Such
statements are based upon the current beliefs and expectations of J.P.
Morgan Chase's management and are subject to significant risks and
uncertainties. Actual results may differ from those set forth in the
forward-looking statements.
The following factors, among others, could cause actual results to
differ from those set forth in the forward-looking statements: the
ability to obtain governmental and self-regulatory organization
approvals of the merger on the proposed terms and schedule, and any
changes to regulatory agencies' outlook on, responses to and actions
and commitments taken in connection with the merger and the agreements
and arrangements related thereto; the extent and duration of continued
economic and market disruptions; adverse developments in the business
and operations of Bear Stearns, including the loss of client,
employee, counterparty and other business relationships; the failure
of Bear Stearns stockholders to approve the merger; the risk that the
businesses will not be integrated successfully; the risk that the cost
savings and any other synergies from the merger may not be fully
realized or may take longer to realize than expected; disruption from
the merger making it more difficult to maintain business and
operational relationships; increased competition and its effect on
pricing, spending, third-party relationships and revenues; the risk of
new and changing regulation in the U.S. and internationally and the
exposure to litigation and/or regulatory actions. Additional factors
that could cause JPMorgan Chase's results to differ materially from
those described in the forward-looking statements can be found in the
firm's Annual Report on Form 10-K for the year ended December 31, 2007
(as amended), filed with the Securities and Exchange Commission and
available at the Securities and Exchange Commission's Internet site
(http://www.sec.gov).
Additional Information
In connection with the proposed merger, JPMorgan Chase & Co. will
file with the SEC a Registration Statement on Form S-4 that will
include a proxy statement of Bear Stearns that also constitutes a
prospectus of JPMorgan Chase & Co.. Bear Stearns will mail the proxy
statement/prospectus to its stockholders. JPMorgan Chase & Co. and
Bear Stearns urge investors and security holders to read the proxy
statement/prospectus regarding the proposed merger when it becomes
available because it will contain important information. You may
obtain copies of all documents filed with the SEC regarding this
transaction, free of charge, at the SEC's website (www.sec.gov). You
may also obtain these documents, free of charge, from JPMorgan Chase &
Co.'s website (www.jpmorganchase.com) under the tab "Investor
Relations" and then under the heading "Financial Information" then
under the item "SEC Filings". You may also obtain these documents,
free of charge, from Bear Stearns's website (www.bearstearns.com)
under the heading "Investor Relations" and then under the tab "SEC
Filings."
JPMorgan Chase, Bear Stearns and their respective directors,
executive officers and certain other members of management and
employees may be soliciting proxies from Bear Stearns stockholders in
favor of the merger. Information regarding the persons who may, under
the rules of the SEC, be deemed participants in the solicitation of
the Bear Stearns stockholders in connection with the proposed merger
will be set forth in the proxy statement/prospectus when it is filed
with the SEC. You can find information about JPMorgan Chase's
executive officers and directors in its definitive proxy statement
filed with the SEC on March 30, 2007. You can find information about
Bear Stearns's executive officers and directors in definitive proxy
statement filed with the SEC on March 27, 2007. You can obtain free
copies of these documents from JPMorgan Chase and Bear Stearns using
the contact information above.
CONTACT:
Investor Contacts:
JPMorgan Chase
Julia Bates
(212) 270-7318
or
Bear Stearns
Elizabeth Ventura
(212) 272-9251
or
Media Contacts:
JPMorgan Chase
Kristin Lemkau
(212) 270-7454
or
Joseph Evangelisti
(212) 270-7438
or
Bear Stearns
Russell Sherman
(212) 272-5219
-0- Mar/16/2008 23:05 GMT
... bitches
Posted by guest , Mar 16, 2008 7:09PM
$2 a share/?!?!?!?!?!?!??!??!?!?!?!?!
Posted by guest , Mar 16, 2008 7:21PM
CNBC-World just reported the Fed cut the discount rate by 25bps to 3.25%, but I can't confirm it anywhere.
Anyone else have confirmation, or are the CNBC people smoking the good stuff tonight?
Posted by guest , Mar 16, 2008 7:31PM
it's true.
*FED EXTENDS DISCOUNT WINDOW LOAN TERMS TO 90 DAYS VS 30 DAYS
*FED TO ACCEPT `BROAD RANGE OF INVESTMENT GRADE' COLLATERAL
*FED SAYS PRIMARY DEALERS CAN BORROW AT DISCOUNT RATE
*DJ Fed: Primary Credit Loans Extended To 90 Days From 30 Days
*FED CUTS DISCOUNT RATE BY QUARTER POINT TO 3.25%
-- Dave Chappelle
Posted by Bulging Bracket , Mar 16, 2008 7:34PM
Just hit all wires - Bloomberg, AP, etc. 3.25% and $2. Interesting weekend for numbers!
Posted by guest , Mar 16, 2008 10:11PM
Jimmy fiddles while Rome burns...good job, 80+ years down the drain in 8 of your watch, now if we can only get your net worth to zero!