I don't even know what that means, neither does David Faber, but he said it's important and he's "making calls" so I'm doing my part and copying headlines down from CNBC.
Update: Sometime yesterday people stopped buying Bear's story that they "have this thing under control," that led to a loss of liquidity, Fed went to JP, was like "Can you help them out? We'll make sure you you don't get burned sticking your neck out on the line for a company that has its head up its ass," JP said "Okay," but not without sighing audibly first.
Also: In Mark Haines's opinion, "The chemo therapy is working." Why does it always have to be about cancer with you, Haines?
As an aside: No one can WRAP THEIR MINDS around the fact that Bear Stearns CEO Alan Schwartz, "a good friend of David Faber" was on CNBC the other day and didn't mention that anything was wrong. How is that possible? A. Schwartz isn't as good a friend as Faber thought (if he was, Schwartz would've told Faber about the hookers he's been using for the past decade). B. Schwartz had no idea anything was wrong (this is a Bear Stearns executive, people, it's not outside the realm of thinking). C. Everything really was a-okay on Wednesday, and then yesterday, everyone who'd been successfully deluded into thinking Bear knew what it was doing snapped out of it and took their money and got the fuck out of there, all at the same time.
Thompson Financial guy:"I wish I were a big, opportunistic hedge fund guy right about now." You know what? I kind of do, too. But not like a Julian Robertson, no, I don't see myself as a Julian Roberston. I can't decide, this is so hard. I bet it would be fun to be Dan Loeb, but I don't see myself making it more than an hour with the veganism. What about L-train? He always looks like he's having a good time. I'm going to think about this a little while longer.
Just wondering: Is JPMorgan going to buy Bear Stearns? Will rumors, real or imaginary, that they're going to, make Credit Suisse, who up until now has claimed to be too good for Bear, drop its Shack burger, and get in on that? I've been telling this kid from CS who has no say in the matter whatsoever to jump on it for the last few weeks and he just kind of laughs it off like I don't know what I'm talking about so, on a personal note, it'd be cool if someone could make some calls and get that scenario going. Not asking for a lot here.
Last thing: because people are seriously getting their knickers in a twit about the fact that ALAN SCHWARTZ DIDN'T SAY ANYTHING ABOUT ALL THIS DURING HIS CNBC APPEARANCE ON WEDNESDAY! Recall for a sec that the guy was in Palm Beach at the time. A. He might've gotten too much sun and just plain forgot to mention what was up. B. He was at the Breakers. The Breakers? Seth Tobias? Hello? I'm just saying, cut the guy some slack--his mind was clearly somewhere else.
Bear Stearns Agrees to Secured Loan Facility with JPMorgan Chase [Bear Stearns]
Posted by guest , Mar 14, 2008 9:24AM
Unfuckingbelievable.
I'm going to have to fucking cover now cause of the fucking Fed.
Posted by guest , Mar 14, 2008 9:33AM
It means that Bear Stearns was a lot worse off than they were letting on and they were in bad shape. Bear has no credibility. That's why equity is still tanking despit the NY Fed's backstopping the JPM loan... bitches.
-- Dave Chappelle
Posted by series75 , Mar 14, 2008 9:35AM
Bess's "Update" is as succinct and accurate a description of what happened as you are likely to read today or ever
Posted by guest , Mar 14, 2008 9:35AM
why not just leave Bear to stew in its own cafeteria filth
Posted by guest , Mar 14, 2008 9:37AM
@ Dave contrary liquidity was fine until AFTER the insolvency rumor, then it got all screwed this is the confidence game phase of the cycle for Bear playing out not the internal fundamental phase
Posted by big r , Mar 14, 2008 9:44AM
this all so reminicent of LTCM.
Posted by guest , Mar 14, 2008 9:45AM
it's still going bankrupt
Posted by guest , Mar 14, 2008 9:47AM
@9:45 put your money where your mouth is?
Posted by guest , Mar 14, 2008 9:49AM
I am making a small fortune on all the Bear CDS I sold this week thank you Fed you are on my christmas list
Posted by Cov Lite , Mar 14, 2008 9:50AM
i think they're fucked. just in denial stage now a la countrywide and subsequently crashing to $6/share and rendering my call options worthless.
Posted by golden girl , Mar 14, 2008 9:55AM
I have a huge crush on David Faber, but I keep hearing he's a midget. Sigh ...
Posted by mrpink , Mar 14, 2008 10:02AM
Well, as a former Bear alum (04-06).. I can say that today, I have been vindicated. The culture under Ace Greenberg was destroyed under Jimmy Cayne, and the signs were there a long time ago.
I am vindicated, here today.
-mrp
Posted by guest , Mar 14, 2008 10:03AM
good, some real carnage
one step closer to being done with it
Posted by Cov Lite , Mar 14, 2008 10:04AM
Dude. These guys are FUCKED
Posted by Cov Lite , Mar 14, 2008 10:04AM
What happens when your business is based on a market that no longer exists?
Posted by guest , Mar 14, 2008 10:06AM
Well done those who were touting $25 and $30 puts the past few days.
Posted by big r , Mar 14, 2008 10:06AM
golden girl, always keeping the tone in the right place
Posted by mrpink , Mar 14, 2008 10:06AM
The BSC news just sent the 2/30 spread from 273 levels up to 288... Hilarious!
-mrp
Posted by golden girl , Mar 14, 2008 10:08AM
big r: I report, you decide.
Posted by big r , Mar 14, 2008 10:14AM
i must admit i have a faber-crush as well. although mine is because hes a jets fan. not many public figures willing to admit that on tv.
in actual news, my BSC source just called me saying how much of a mess senior management is. BSC employees are known for owning the most of their own company's stock.
Posted by guest , Mar 14, 2008 10:15AM
Jesus! Goldman Sachs stock ...over the last few days....has been going up and down like a Kristen's dress at rush hour!!
-The Forehead Slapper
Posted by guest , Mar 14, 2008 10:15AM
As in Spaceballs: "May the Schwartz be with you!"
It's Friday - will "Jennifer" be giving us a hot finance-related story to start the weekened off?
Posted by guest , Mar 14, 2008 10:16AM
you know how in high school there was a girl you liked and you wanted to sleep with, and you were working on it and then one of your douchebag friends started a rumor that you said you slept with her even though you never really did, and everyone believed it and then she hated you and you lost your chance with her forever?
that is what is happening to bear stearns here today.
Posted by guest , Mar 14, 2008 10:16AM
9:49AM, hope you bot back that CDS at 500... now back over 600...
Posted by guest , Mar 14, 2008 10:16AM
Who is Jennifer? Is she related to Ron Paul?
Posted by guest , Mar 14, 2008 10:18AM
Jimmy Cayne telling the troops...
"Smoke 'em, if you got 'em"...
Posted by guest , Mar 14, 2008 10:20AM
covered right away, not stupid!
Posted by guest , Mar 14, 2008 10:20AM
bid side on those 25/30 puts implies 495 vol. sweet jesus.
i want first dibs on their building.
Posted by dd , Mar 14, 2008 10:21AM
bsc down 45%
Posted by guest , Mar 14, 2008 10:22AM
"Jennifer" is the female equivalent of that Tanner/Thad/Tad (whatever - I'm much too uninterested and lazy to search) male character that Bessie created. Jennifer is the nice, beautiful, helpful investment analyst by day, the slutty party girl who will probably do *anything* by night. If the girls are going to get a character, then we guys should have one as well. Unfortunately, not one girl (as of yet) has been willing to use their experiences from English Lit for some good.
Posted by Cov Lite , Mar 14, 2008 10:23AM
Friend of mine (Bear employee) has most of her 401k in BSC stock, as do a lot of other employees.
Poor bastards. That place is a shitshow
Posted by guest , Mar 14, 2008 10:25AM
I would say the writing is on the Tombstone now!!
" BEAR STEARNS R.I.P "
Couldn't have happened to a nicer bunch of sleaze bags!!
Posted by guest , Mar 14, 2008 10:25AM
golden girl sounds like a school girl, but not a naughty one
Posted by guest , Mar 14, 2008 10:26AM
please, that is an insult to bess, who didn't make up thad, that unfunny, rapist character. it was created by the guy who does the cajun boy blog, WHICH THEY SAY, EVERY TIME THEY POST HIS COLUMN.
Posted by guest , Mar 14, 2008 10:26AM
The Fed will react over the weekend....financial stocks will go up 8% on Monday....better MOC everything on the table, take your profits and enjoy the weekend. Play again on Tuesday.
Posted by guest , Mar 14, 2008 10:28AM
@10:23 That's just stupid. I would expect better from people that work in the industry.
Posted by guest , Mar 14, 2008 10:30AM
Not to be confused with Thad, Tanner was a real person. The hot blond muscle boy, Cornell to UBS, who got his pic posted because of participating in a contest to hook up with a sugar mom.
Posted by guest , Mar 14, 2008 10:32AM
i hope it goes under! Those bastards canned me right before bonus time in 06.
Posted by guest , Mar 14, 2008 10:33AM
@10:28 people on that side of the industry are the reason this is happening, so I wouldn't expect much more from them
Posted by guest , Mar 14, 2008 10:33AM
@10:26 I know it was canjunboy, but she allowed him on the site and therefore approved of it (and insult to us guys). Po-tat-toe, po-ta-toe. Perhaps I should've stated "added or started". Since his/her stories are so terrible, Jennifer should be added - unless you like reading about that guy? I guess all the girls in finance are too busy figuring out math to actually write "Jennifer". Then again, perhaps I'll be proved wrong...
And BSC might be the biggest gainer of the day too...
And Billy Crystal might be signed to the Yankees with a four year contract...
And Eliot Spitzer will become President!
Posted by guest , Mar 14, 2008 10:33AM
@10:28 most of the people who work at bear are not investment professionals at all but rather support staff of some sort
Posted by hedge , Mar 14, 2008 10:34AM
Good news Citi... you're no longer the butt of *all* our jokes.
Posted by guest , Mar 14, 2008 10:34AM
Where are the puts on BSC now? How does one check them? (I'm a finance lawyer, not a trader).
Posted by guest , Mar 14, 2008 10:34AM
Bear Prime Brokerage and Correspondent Clearing clients are hitting the exits fast...this firm is cooked!
Posted by Cov Lite , Mar 14, 2008 10:35AM
@10:28 and 10:33 - Yes. Back-office. May be a bit too optimistic on the fortunes of the greatest joke ever.
Posted by golden girl , Mar 14, 2008 10:36AM
@guest 10:25 - I did once attend an all-girls school. Plaid uniforms!
Posted by guest , Mar 14, 2008 10:36AM
who is this person is who keeps requesting Jennifer but doesnt even know the difference between a Tanner and a Thad and thinks "Bessie" made them both up?
n00b.
Posted by guest , Mar 14, 2008 10:38AM
I can't decide which was better:
"Fed went to JP, was like "Can you help them out? We'll make sure you you don't get burned sticking your neck out on the line for a company that has its head up its ass," JP said "Okay," but not without sighing audibly first." or
"Schwartz had no idea anything was wrong (this is a Bear Stearns executive, people, it's not outside the realm of thinking)."
They're both so sublime.
Posted by guest , Mar 14, 2008 10:38AM
What percent of 2007 bonus comp was paid in Bear Stearns stock? Stock was around $80 in Jan, now $30, ugly. Also, in past years, was bonus stock restricted for a couple of years as is typical on the Street? If so, those guys are totally fucked. To state the obvious, morale there must suck.
Posted by guest , Mar 14, 2008 10:39AM
golden girl, I meant that you sound like a school girl. period.
Posted by guest , Mar 14, 2008 10:39AM
Hey @10:28AM: People who work in the "industry" have caused the writedown of over $200 BILLION recently. I suppose you want to trade out of that?
They used to say the oil and gas industry was the greatest destroyer of capital but I'm thinking we now have to engrave the financial industry's name on the silver "Turd Bowl".
Posted by guest , Mar 14, 2008 10:40AM
@lawyer you can see them on yahoo finance since i assume you dont have a bloomberg
http://finance.yahoo.com/q/op?s=BSC
Posted by guest , Mar 14, 2008 10:40AM
@10:36 Can you even read? Read the prior posts and get back to us.
Posted by guest , Mar 14, 2008 10:41AM
Does Bear Stearns even have an actual line of business that generates revenue anymore?
Oh wait, no, and it has been that way for half a year.
Posted by guest , Mar 14, 2008 10:41AM
Loeb is a vegan?
Posted by Cov Lite , Mar 14, 2008 10:42AM
Smoking pot and gay sex in the men's room on the 14th floor.
Bad combo already. Combine that with prime brokerage and you're toast.
Posted by guest , Mar 14, 2008 10:43AM
Bear will show you next week made money in most lines of business in 1Q most likely.
Posted by golden girl , Mar 14, 2008 10:45AM
Does anyone on this list use Bear Stearns for prime brokerage? I'd be interested to hear about what the relationship has been like in the last few weeks. People must be fleeing the counterparty risk I should think ...
Posted by guest , Mar 14, 2008 10:49AM
JPM is NOT buying BSC. Not today, not tomorrow, not ever. Today's transaction is one counterparty (JPM) propping up another counterparty (BSC) at the behest of the governing body (the Fed) whose responsibility is to ensure working and efficient markets as best they can.
Bear is mortally wounded. No one will buy them in their current form. Identify the profitable business lines (ie their clearing business), figure out how to carve them out of the albatross that is their structured products and capital markets businesses, and you will begin to get the picture of BSC's future.
It's actually sad. Despite my many many many doom and gloom exhortations to anyone who would listen about how bad things were at EVERY bank across Wall Street, I always thought Bear would be a survivor. That looks less and less likely these days.
-- Dave Chappelle
Posted by girl , Mar 14, 2008 10:50AM
and in other news, 10:33 is an shithead
Posted by guest , Mar 14, 2008 10:52AM
J. Cayne is the largest individual shareholder in BSC. Take how many shares he owns and multiply by $180 and then repeat with $32....
Bloodbath!!!...
Posted by guest , Mar 14, 2008 10:52AM
this is great carnage, what a more perfect example to have a sacrifice with BSC - it's almost exactly like in the Jesse Livermore memoir of the 1907 crash...fucking great
Posted by mrpink , Mar 14, 2008 10:54AM
BSC did do a lot of Agency trading in eq derivatives. If it's true that they are indeed shopping the firm around, I know this may be out on a limb (don't make fun of this suggestion), but I would NOT at all be surprised if SocGen's equity derivatives desk could try to buy out their derivatives (agency and an albeit small prop eq derivs desk).
Any feedback on that idea?
I honestly believe that their Government desk is toast. Too much overlap, most firms already have a comprehensive GovSec execution/research desk. Equities execution (5th floor) also is going to be toast. There's a few gems in there as some others have pointed out:
1) Prime Brokerage
2) Believe it or not, the Asset Management group
3) Equity Derivatives sales/trading
4) Maybe some nitpicking over the IB division, but I cannot speak with authority, since I was in sales/trading not IB.
5) Technology (more specifically E.A.S.T. group.. the rest of those folks are toast)
-mrp
Posted by girl , Mar 14, 2008 10:55AM
sorry i meant "an asshole" or "a shithead".
Grammar- something us poor girls can wrap our heads around.
Posted by guest , Mar 14, 2008 10:58AM
Is this Yogi of which we speak, or the same Bear that refused to be a part of the LTCM bailout? Every Boo boo gets a bail. Amazing.
Unlike many of you, I have maybe two pennies to rub together, and had a nice little position just to put a few peanuts in my pocket. A humble retail investor.
But Bernanke with his "let me surprise them with my powers and those of my Dungeons and Dragons Fed Friends" comes along and levitates the market Tuesday, taking my peanuts.
Fine. Loss is a loss. Just wait till Fed powers fade, market reverses, and sell for smaller loss. (says Me to Me, though I had trouble listening to myself, $6K being meaningful to me).
Then today, my broker, who shall remain nameless, has a 15 minute period where they cannot confirm am options sale, nor a modification of that sale price, nor a cancellation of that unconfirmed sale price (as QQQQ's dropped)--only to get a call from me which leads them to put me on hold while they "search for status" for ten minutes, then say they will call back. Only to call back ten minutes later saying, "We filled you at half the price of the market, but it seems wrong. Will run it by a supervisor and call you back."
And they will get back to me any moment now, as the market and the world turn.
Which brings me back to Bear. They screw up, get bailed out by the government. I don't screw up, get impacted by government manipulation, without bailout, and the private firm (in theory more efficient) cannot handle a small market gyration in the options market. What is going on in NYC, in Washington, in Chicago?
But I guess Bear employees have real serious issues to worry about, so I should probably pipe down, and unraise my raised eyebrow
(I had to post this under guest instead of my log in, out of complaint shame).
Posted by Anal_yst , Mar 14, 2008 11:00AM
Anyone know the size, terms, collateral, and/or any other terms of the JPM/BS loan?
Posted by Anal_yst , Mar 14, 2008 11:02AM
10:58, i'm assuming you use Smith Barney?
Posted by onetwo , Mar 14, 2008 11:03AM
@ CovLite
"Friend of mine (Bear employee) has most of her 401k in BSC stock, as do a lot of other employees.
Poor bastards. That place is a shitshow"
Hmm, you would have thought that a bunch of "investment professionals", if you can call them that, should have, um, what's that word...diversified. I think the fact that many of their 401(k)s were all concentrated bsc stock tells you everything you need to know about the company--and the quality of their current employees!!!
In this post-enron "i lost all my life savings because they were enron stock" era someone would have said, "hmm, my bonus, paycheck, insurance, heck my life is tied to the solvency of this company...maybe i shouldnt add 'retirement' to the list."
c'est la vie. RIP bear.
Posted by guest , Mar 14, 2008 11:03AM
Fox Business said it's something over 65bn
Posted by guest , Mar 14, 2008 11:04AM
their research dept is hosting a conference call on their outlook for financials right now....sad, sad irony.
oh, and on the PB front, the other firms are hunting and killing for their acct's. I would think that those that have multiple PB's have already switched their accts but those solely at bear must be FREAKING out - takes a while to switch.
Posted by onetwo , Mar 14, 2008 11:08AM
BSC mrkt cap <$5b...jesus
Posted by big r , Mar 14, 2008 11:08AM
@onetwo - they have lockup periods where they cant move the stock for ~3 years. a lot of these guys were given stock options in the 100 and 150s.
although i do agree. if given stock of your own company, the second you're allowed to sell you should. youre already leveraged so much to the company.
Posted by series75 , Mar 14, 2008 11:09AM
@Dave Chappelle, I think it's more complex than that. (More complex ... than that?) This is not JPMorgan credit extended to Bear because the Fed suggested it was a good thing to do, JPM is just the conduit through which the Fed is extending its own credit to the troubled broker since the term lending facility is not open yet.
@MrP Bear's IB would be useless most places except at a bank with a larger balance sheet that could leverage it in a way standalone bear could not (if that business model still exists; I believe it will) but it would have to be someone who doesn't already have a lot of people on the ground in the U.S. so yeah why not SocGen?
Posted by DrederickTatum , Mar 14, 2008 11:09AM
You know what sucks about this most? Jimmy Cayne is at a 4 week bridge tournament... so he's refusing to take any calls.
Posted by guest , Mar 14, 2008 11:10AM
James Cayne rolling a huge spliff right about now
Posted by guest , Mar 14, 2008 11:10AM
pink @10:54 I get hot hearing you talk that way. GAnalYst
Posted by DrederickTatum , Mar 14, 2008 11:13AM
Lets as an honest question here... If JPM is really going to buy BSC, How much could it possibly be worth? Its impossible to value. Nobody knows how much subprime pain is left... you can't value a very sizable chunk of BSC's holdings... and Nobody in their right mind is going to use Bear for prime brokerage. JPM shouldn't pay more than 5-10 bananas per share - and even that might be a rip off.
By the way, those screams you hear coming from the Bahamas... that's Joseph Lewis.
Posted by series75 , Mar 14, 2008 11:14AM
@GG 10:45 yes, thats how this whole problem got started.
Bear still feels like toast though, and is scurrying busily to lock up more funding past 28 days, the clock is ticking, your phone will probably ring some time soon. Every hedge fund CEO should be taking his money out.
Posted by guest , Mar 14, 2008 11:15AM
Jimmy smokes blunts, Spector fucked his soft core porn actress wife, what was Schwartz's peculiar habit? Seriously you can't get good help these days.
Posted by guest , Mar 14, 2008 11:16AM
Why would JPM buy BSC when it can spend the same $4 billion or whatever buying securities it knows will be good instead of a potpouri of money good and money bad? A successful full service banking house like JPM is the kind of firm that has the least to gain by taking on a whole other broker.
Posted by guest , Mar 14, 2008 11:17AM
Mr.P
actually EAST is a cost center...a LOT of ppl got canned there during the layoffs in oct/nov. the entire div was considered a poor choice.
Posted by guest , Mar 14, 2008 11:21AM
@ Anal_yst, 11:02AM:
Oh no not Smith Barney. I am very small. Use an options brokerage out of Chicago, which overall works just fine when I do some simple spreads. Usually they are ok for my purposes so I don't want to throw them bad attention.
But here I was trying to just close out a straight put position and they kind of lagged, neither filling or cancelling the limit order.
Posted by guest , Mar 14, 2008 11:21AM
You could consider buying BSC stock and selling the 35 call against it - some protection and only a few days till it expires
Posted by guest , Mar 14, 2008 11:22AM
don't worry, W's on TV now - he's going to make everything all better.
Posted by DrederickTatum , Mar 14, 2008 11:26AM
By the way, I'd love to have been on the conference call between BSC and the Fed.
What do you think Schwartz/Cayne said? Here's my prediction:
"Hi Mr. Bernanke. Just calling to check in, see how everything is going. Not sure if you've been following it or not, but the market's been a little turbulent lately.
Anyway, we've had some accounting issues over here and it looks like we may have made a wee mistake or two. I was wondering, Do you know any smart, well-run investment banks that can loan us about 20 billion dollars? Or, alternatively, can you hold a meeting of every major bank on Wall Street like you did with LTCM? Please try to overlook the fact that we told every major financial institution to go to hell when LTCM fell apart. Try to just gloss over that."
Posted by guest , Mar 14, 2008 11:27AM
@Series75, you are correct. I rattled that off too quickly. Trying to trade and comment at the same time causes problems. You'd think that would persuade me to not post so I can focus on trading. But then that wouldn't be me.
The real question is will there be more headlines out of the Fed this weekend? Interesting times . . . bitches.
-- Dave Chappelle
Posted by mrpink , Mar 14, 2008 11:29AM
LOL Bess! Matchmaking at a time when the the proverbial car (BSC) is on fire, the tires are slowly falling off, the hood flew off 2 exits ago and Cayne is huddling under his desk with some hydroponic pot playing bridge with Spector (who he snook into the office)
-mrp
Posted by golden girl , Mar 14, 2008 11:31AM
Matchmaker matchmaker make me a match
Posted by mrpink , Mar 14, 2008 11:31AM
@ 11:17:
Oh. I didn't know they canned a lot of folks from EAST. They had a lot of interesting tools coming out of there, i.e. having the computer recommend how to/which strategy to use to break up your large equity orders. Before I left, I thought they were working on having it do the same thing for options and having it analyse the news feeds for ideas. I guess all that's gone out the window.
So, what's the cigar smoking Peter Cherasia to do now? That was his cash cow.
@ GAnalYst: LOL ;)
Posted by guest , Mar 14, 2008 11:33AM
has Chuck Gasparino weighed in on the Bear situation or did Kneale bitch to the higher ups at CNBC and have him put in timeout? We all know Kneale wouldn't be client #8 anyway...he obviously prefers the meat cigar
Posted by Cov Lite , Mar 14, 2008 11:33AM
I just threw up a little in my mouth
Posted by guest , Mar 14, 2008 11:35AM
Yo The Guy, did you kill Bear Stearns?
Posted by guest , Mar 14, 2008 11:36AM
@Cov Lite 11:33
You're not the only one
Posted by guest , Mar 14, 2008 11:40AM
BofA is regretting their planned CFC "purchase" and their IB arm hasn't faired well, so why not come in and rub BSC's belly and tell them "Shhh...it'll be okay" as they quitely fork over 15% offer price over BSC's closing price today for all shares outstanding this weekend...Bear's EV is about $67 bil...could BofA step in as a potential buyer here?
Posted by Viajero2007 , Mar 14, 2008 11:43AM
So how much outstanding notional do these guys have anyway?
BTW, I did DD on their EM hedge fund a couple of years ago and found out during the onsite visit that they were just a bunch of cowboys -- leveraging up EM debt at 4:1. No wonder they're f*cked.
Posted by guest , Mar 14, 2008 11:43AM
GAnalYst here... I was joshing. I already have a great boyfriend. Who luckily doesn't work in financial services.
Posted by guest , Mar 14, 2008 11:48AM
Any hedge fund that remains with Bear as their Prime is just asking for disaster. Just as any brokerage that continues clearing through bear is also asking for disaster.
Bear will not exist 6 months from now, one way or another the institutional clients get screwed if they stay and staying at Bearis a breach of your fiduciary responsibility to your investors right now.
Any firm that buys Bear is not going to get much, this is basically a liquidation sale now.
One question, when do the mass layoffs begin?
Posted by mrpink , Mar 14, 2008 11:49AM
BSC conference call at 12:30
NEW YORK--(Business Wire)--
The Bear Stearns Companies Inc. (NYSE: BSC) plans to host a
conference call today at 12:30 p.m. EDT to address speculation in the
marketplace related to its announcement this morning. The company will
announce its first quarter 2008 financial results on Monday, March 17,
2008, after the market close.
Those wishing to listen to today's call should dial toll-free
1-800-374-2412 (or 1-706-634-7253 for international callers) at least
10 minutes prior to the start of the call to ensure connection to the
conference. The conference call will also be accessible through the
firm's Web site at http://www.bearstearns.com. For those unable to
listen to the live broadcast of the call, a replay will be available
later this afternoon on the company's Web site or by dialing
1-800-642-1687 (or 1-706-645-9291 for international callers). The
passcode for the replay is 39764449. The replay will be available
until midnight on Friday, April 4, 2008.
Posted by guest , Mar 14, 2008 11:51AM
Well, I picked a fine fucking time to stop sniffing glue and get an MBA.
Posted by guest , Mar 14, 2008 11:53AM
OK, anyone remember the SIPC question from series 7?
If you have over $500K good luck!
http://www.sipc.org/
Posted by mrpink , Mar 14, 2008 11:54AM
GAnalYst:
Aw my heart's broken! Oh well, back to Tanner-esque photos :)
-mrp
Posted by mrpink , Mar 14, 2008 11:56AM
from a good friend (I know you're reading)
"My broker on BMBG Chat: "I just heard it [1 yr protection] traded up at 2000bps""
-mrp
Posted by guest , Mar 14, 2008 11:56AM
@girl Obviously neither a math major nor an English Lit major. You're lucky the EEOC exists to give people like you a chance.
Posted by guest , Mar 14, 2008 11:58AM
This will never go into SIPC, thats why the Fed bailed them out today. Had the Fed not arranged financing then it would have gon insolvent today and SIPC would have taken over...thus causing a real market crash today.
The fed basically gave them enough capital to spend 28 days either finding someone to but the assets of the firm or wind-up the business in an orderly fashion without SIPC involvment.
My guess is most units of Bear Disappear very quickly in the coming weeks and some select units get bought by JPM at a discount.
There is not much of a unique business at Bear, they have the same crap as everyone else on the street. Its easier to liquidate it all than find a buyer.
Posted by guest , Mar 14, 2008 12:00PM
Plenty more sub-prime pain to come. One prominent Swiss bank has a presentation on its website that shows its marks $16bn away from Markit.
Tomorrows headline - Who's next ?
Posted by girl , Mar 14, 2008 12:05PM
You're half right, I actually got this job during cocktail hour at my sister's wedding.
If that makes a miserable shit like you who busted his ass at some crap school any happier to be doing a monkey's job, then I will have done my one good deed for the day.
Posted by guest , Mar 14, 2008 12:06PM
Thank god severance was all cash!
Posted by DrederickTatum , Mar 14, 2008 12:09PM
@11:51 - Yeah, I feel bad for anyone graduating b-school right now. I imagine that if you're at HBS, Chicago, Wharton, etc, you'll be alright regardless.
Posted by Random Banker , Mar 14, 2008 12:09PM
Well I just bought some $40 BSC Mar 22 calls. So BSC is probably going to 0 given my track record.
Posted by guest , Mar 14, 2008 12:10PM
Where the hell is Gasparino?!
Posted by guest , Mar 14, 2008 12:12PM
why all the fighting, let's just be thankful we don't work at Bear or BofA at this time
we're safe, whether it was easy or hard for us to get our jobs, so let's just try to be cheerful about that
Posted by guest , Mar 14, 2008 12:14PM
@mrpink
oh noooooo, EAST has changed A LOT since then...east is a situation where they pumped all this money in and havent seen any returns really...they make a big deal abt it to the market at conferences and such but basically most of the dept was axed.
Posted by guest , Mar 14, 2008 12:28PM
@girl
I'm just glad that you have to work for someone else. Having to show up when they want, doing to do the work *they* want you to do. Having a set amount of vacation time. Having performance reviews. Having to dress in "business attire" instead of wearing whatever you want. I'm in the "I Made It and You Haven't So Go Screw Yourself You Corporate Follower" boat. You've made my day. Here's a piece of advice: most *employees* will NEVER earn the REAL dough. Why follow someone else's dreams?
Posted by guest , Mar 14, 2008 12:35PM
least they could do is start this effing call on time, emmer effers
Posted by AJ , Mar 14, 2008 12:36PM
I get stuck in a conference call all morning without my blackberry and the shit hits the fan... love it
Posted by guest , Mar 14, 2008 12:37PM
DB should live blog the call. Use Carney's other personality, Bess
Posted by golden girl , Mar 14, 2008 12:41PM
Anyone know the passcode for the call? The press release has the replay passcode, not sure if it's the same. I've been on hold listening to muzak and "please continue to hold" nonsense for the last 15 minutes. Brutal.
Posted by girl , Mar 14, 2008 12:42PM
Considering i'm not even 3 years out of college, I'm just pretty happy to be employed. I'm fairly certain I have time to make the "real" dough when and more importantly if i feel so inclined.
Posted by AJ , Mar 14, 2008 12:43PM
I keep getting a damn busy signal
Posted by Anal_yst , Mar 14, 2008 12:43PM
12:37 03/14 DJ MARKET TALK: Bear's Situation Answers One Debate, At Least
One top Democrat was stunned by the Federal Reserve's role
in supporting Bear Stearns (BSC). "I've never seen anything like it," said Rep.
Rahm Emanuel, D-Ill., and chairman of the House Democratic Caucus. The
development helps settle a long running debate about financial rescues, he
quipped. "(We've) just decided the market position on 'too big to fail'."
Yet another financial genius in congress...sheesh!
Posted by golden girl , Mar 14, 2008 12:44PM
Just got in, they're already on to questions.
Posted by guest , Mar 14, 2008 12:45PM
Loved all the gushing "it's over" in WSJ and IBD this morning thanks to S&P's comments that "Worst is Over..." yesterday.
Then, this morning, ...KABOOM...Thank you, Bear Stearns!!!
I bet the S&P folk wish they had that one back!
Will all you smart financial types please pull your heads out of your asses before you become a business school case study? Please??!!
Posted by guest , Mar 14, 2008 12:47PM
why arent you nimrods just listening to the webcast instead if you cant get into the dial-in?
Posted by BottomFellOut , Mar 14, 2008 12:50PM
any comments on the counterparty risk out there?
Posted by guest , Mar 14, 2008 12:50PM
comments from the press conference
*BEAR STEARNS SAYS BOOK VALUE FUNDAMENTALLY STILL IN MID 80S
Great- looks like a steal at $40 then!!!
Posted by guest , Mar 14, 2008 12:50PM
all busy signal for me
Posted by Anal_yst , Mar 14, 2008 12:51PM
1. @ 12:28, Girl is hardly just another sheep, quite the contrary.
2. @12:45, havent' we already determined S&P != smart financial types?
3. anyone else buying bear calls yet?
Posted by guest , Mar 14, 2008 12:53PM
Uh where are all the sell side analysts on this call? Asleep? Shell shocked?
Posted by AJ , Mar 14, 2008 12:55PM
... i kept hitting refresh on bearstearn's website... never saw the link for the webcast.. got into the call though
Posted by mrpink , Mar 14, 2008 12:55PM
@ 12:47
They haven't put the link to the webcast on their site yet.
The IT folk must be busy trying to re-block dealbreaker RSS feeds.
-mrp
Posted by Random Banker , Mar 14, 2008 12:58PM
Hey analyst Rom Emaneul is a sometimes I-Banker and known Clinton knee-capper. He must be looking for some political gain here, he's not that ignorant of financial history.... though I'm not sure what exactly his angle is.
Posted by mrpink , Mar 14, 2008 1:00PM
BSC has traded all of it's float (I think they only have ~120M shares outstanding)... 128.3Mln traded as of.. now
-mrp
Posted by guest , Mar 14, 2008 1:05PM
Hey remember that time 12 of 16 analysts recommended BSC as a hold? Yeah, good times.
Posted by guest , Mar 14, 2008 1:07PM
what does it mean?
Posted by guest , Mar 14, 2008 1:09PM
1:07, did you ever see the opening scene to Red Dawn?
Posted by guest , Mar 14, 2008 1:34PM
9:24 Please say you didn't cover....
Posted by guest , Mar 14, 2008 1:39PM
I think Joe Lewis became the biggest shareholder at Bear now, overtaking Jimmy Cayne. There's a class action suit against the BS retirement entity for investing exclusively in BS stock. Unfortunately, there may not be anyone or any money to pay the judgment.
Posted by mrpink , Mar 14, 2008 2:15PM
14:14 14Mar08 RTRS-BEAR STEARNS DEBT PROTECTION COSTS HIT RECORD 765 BASIS POINTS - PHOENIX PARTNERS GROUP
Posted by mrpink , Mar 14, 2008 2:19PM
Can anyone confirm a 2k print in the 1Y CDS?
My I-D broker seems to be "out to lunch"... Bastard.
-mrp
Posted by mrpink , Mar 14, 2008 2:24PM
@ 12:14
Truly sad indeed about EAST... Oh well...
-mrp
Posted by big r , Mar 14, 2008 3:00PM
my source as BSC said that people are bring home any necessities from their desk since they expect to be bought over the weekend
"[the new CEO] is a fucking moron! theres parts of this company that make money but this fuck cant show any confidence for us. hedge funds are ganging up on us shorting the stock and then the next day telling us they're not trading through us anymore. drinks on you tonight, dick"
Posted by guest , Mar 14, 2008 3:04PM
i want to know who the "kid at credit suisse" is
Posted by guest , Mar 14, 2008 3:06PM
Does anyone who works at BSC actually think they will have a job come next week?
Posted by mrpink , Mar 14, 2008 3:19PM
@ 3:06-
Nope.
-mrp
Posted by mrpink , Mar 14, 2008 3:23PM
Time for me to go to the Shake Shack!
-mrp
Posted by guest , Mar 14, 2008 3:27PM
EAST group was terrible! The only smart went to GS doing Prop and rest were clowns. Nothing ever worked in (atleast in reality)
Posted by guest , Mar 14, 2008 3:27PM
funny how when bsc gets fucked over by hedge funds, bsc staff cry like little bitches...but when they and their cronies did it to innocent corps, it was simply "the market" reacting....hahaha...suck it bitches
(sorry dave, it just seemed to fit here)
Posted by guest , Mar 14, 2008 3:57PM
CNBC is now talking about rumors from JPM about a complete wind down of Bear Stearns.
Say Buh-Bye BEST and BSSC.
Posted by mrBrown , Mar 14, 2008 4:29PM
I was just informed that Bess Levin 'allegedly' is hooking up Gay_Analyst with MrPink. This is outrageous! I demand my right of Carpe Diem set forth by our forefathers that she hook me up with some slut (female) as well immeGiately!
Posted by mrpink , Mar 14, 2008 4:44PM
Mr Brown-
Lord Browne I presume? You're hours late to the punch bowl, my friend. Said meeting is NOT taking place. Read the comments.
-mrp
Posted by guest , Mar 14, 2008 4:45PM
Brown: Pay attention here: 1) It was an offer to arrange a DATE which, even under the more slutty standards that apply among gay boys, is not the same as a hook up 2) I declined, not because theres any reason to believe Pink would be any less hot than that slab of boy beef Tanner, but because I already have a boyfriend and 3) get my tag correct: GAnalYst
Posted by mrpink , Mar 14, 2008 4:47PM
LOL .. Perfect!
Mr. Brown, shouldn't you be meeting someone on the 4th floor of BSC's bathroom? They're waiting for you.
-mrp
Posted by mrBrown , Mar 14, 2008 5:00PM
1) Date? That means DB would pay for everything. I will ad this to the list of demands.
2) The two homosexuals that I know are far more promiscious then most heterosexuals. Therefore I feel the sample size is statistically significant and it is safe to generalize that the entire population is highly promiscious so having a boyfriend has little impact.
3) sorry about that mate.
Bear Stearns won't return my phone calls!
Posted by mrBrown , Mar 14, 2008 5:01PM
I'm on the 4th floor of BCS.....it's so english.....
Posted by guest , Mar 14, 2008 8:42PM
A real estate play pure & simple - JPM wants Bear's building so they don't have to build downtown and ruin the sweet Grand Central commute.
Posted by BruceWayne , Mar 16, 2008 12:48PM
@ 8:42pm
You are probably right. It is no secret that Dimon loathes Bear Stearns. What better way to stick a finger in Cayne's eye than to turn his executive suite into a broom closet and or men's room suitable for anonymous gay sex?
Posted by guest , Mar 16, 2008 5:38PM
Bear Stearns continues to get bailed out by the Federal Government. Back in 2004 the General Counsel of Bear Stearns stated in a conference call that federal regultors had been giving them a free pass to securities violations. In 2005 the SEC later reduced the financial liability of Bear Stearns and other institutions by creating a 'grandfather clause' to the illegal trades executed.
Listen to the Bear Stearns audio here:
http://investigatethesec.com/drupal-5.5/node/153
Posted by guest , Mar 17, 2008 10:44AM
"And when you lose control, you'll reap the harvest you have sown." Pink Floyd, Animals
Easy money is what brought us to this sorry state.
I say jack up the interest rates, and enforce the existing regulations. Whoever fails is supposed to fail.
Anything less, will just encourage unsound fiscal behavior. And you greedy idiots will continue to "game" the system.