No one, not even the hopeful summer analysts, who really need these jobs, will be spared.
THE LAYOFFS AT BEAR HAVE BEGUN! I'm actually a sophomore who was planning to intern at Bear Stearns this summer. I called the guy I had interviewed with originally this afternoon. He said he was busy, so I agreed to call back after 4:30. At 5 pm, I call, and some other guy picks up and says, "He no longer works here". There you have it...the massacre begins.
Posted by guest , Mar 18, 2008 10:34AM
Ouch.
Posted by guest , Mar 18, 2008 10:34AM
So a Bear trader quit and an annoying sophomore intern gets dinged for bugging people on the most traumatic day of their lives. Yawn.
Posted by guest , Mar 18, 2008 10:36AM
Research was being let go over the weekend. But they aren't people.
Posted by guest , Mar 18, 2008 10:40AM
Didn't citi cut 80% of their first year analysts in the states?
Posted by guest , Mar 18, 2008 10:44AM
Head hunters are reporting that the current MBA class at HBS is very interested in information pertaining to plumbing and plumbers.
Posted by guest , Mar 18, 2008 10:45AM
they take interns as sophomores? isn't that unusual?
Posted by a dead horse , Mar 18, 2008 10:47AM
Wow.
So a Sophomore who has at least some brains (some because they got a spot as a SA at Bear, some because they couldn't get Goldman) decided it was a smart move to call up his interviewer twice on a day when that guy was at the very least under a ton of stress and at worst being laid off along with everyone around him? Really? What was the thought process there? "Gee, his bonus from last year couldn't buy lunch at Cipriani anymore, he will probably need to find a new job soon, his family's financial future is going to be uncertain for the foreseeable future...I wonder if he wants to talk!"
Just some advice for the kids who now don't have jobs at Bear for the summer...wait until the real people are done hearing about the important things, like whether or not they have jobs or if their stock should be used as TP or confetti, before calling to hear about yours. If you are in doubt, start looking for another job anyway.
Posted by guest , Mar 18, 2008 10:47AM
those kids are screwed bc they dont have a shot at getting a job at any of the other banks either, since this is a time of downsizing. Good luck (note sarcasm) getting a job at a major priv equity or fund, as they've already done their recruiting.
as a former BSC employee, who has lots of friends there, i did NOT hear that research was already let go-decisions are being made this week and next.
i feel VERY badly for the ppl there who are middle aged and older who have been there forev and held a lot of stock-- they will prob never be rehired at their former salary and have lost everything
Posted by guest , Mar 18, 2008 10:47AM
Trade support was also let go yesterday.
Posted by guest , Mar 18, 2008 10:50AM
Goldman Banker: How Much for the shine?
Former Bear I Banker: $2.75 please sir
Goldman Banker: Here is $3, keep the change
Posted by guest , Mar 18, 2008 10:52AM
A sophomore in college called a guy who forwarded him to another guy who says that the first guy doesn't work there anymore? it doesn't even say if he quit or got fired. Ahhh, yes, Dealbreaker: bastion of informational integrity, crusaders for journalistic exactitude.
This just in: Jimmy Cayne has a terminal illness. "Ummm, he's sick. My best friend's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Jimmy pass out at 31 Flavors last night. So I guess it's pretty serious." Simone from Ferris Bueller is every bit as reliable.
Posted by guest , Mar 18, 2008 10:56AM
Has anyone else noted that since the inception of Dealbreaker, markets have gotten more volatile?
-Fake Ben Bernanke
Posted by guest , Mar 18, 2008 10:59AM
@10:52 you should just blow the intern and get it over with.
Posted by guest , Mar 18, 2008 11:00AM
@ 10:52-- they pass on the gossip, that is the point of this site. dont like it, leave.
Posted by guest , Mar 18, 2008 11:08AM
yeah jeez its nice that DB is actually posting the gossip for a change, instead of posting "Have you heard anything about ... X? email us!" and then never telling us the results
Posted by BottomFellOut , Mar 18, 2008 11:14AM
JP Morgan Banker: How Much for the shine?
Former Bear I Banker: $98 please sir
JP Morgan Banker: Here is $2, charge the rest to equity.
Posted by guest , Mar 18, 2008 11:14AM
DB blogging posts have been lame in general
Sunday night was good; yesterday, landmark day in St. history.....zip, nothing
Plenty of Bergdorf ads though
Posted by golden girl , Mar 18, 2008 11:16AM
I really want to hear more about what it's like at the Bear offices right now. Are people actually working? Are they just sitting there staring at the ceiling with dread and maxing out their Seamless accounts while they still can? I jest, but I am quite curious to hear first-hand accounts.
Posted by guest , Mar 18, 2008 11:26AM
I can't believe this intern was bothering people at Bear yesterday. I would have just told him his position was eliminated to get him off the phone.
Posted by BruceWayne , Mar 18, 2008 11:26AM
What will happen to the men's room on the 14th floor? JP Morgan should host a Village People reunion tour in the 3rd,4th, & 5th stalls as homage to anonymous male butt sex.
Posted by girl , Mar 18, 2008 11:33AM
@ golden girl- my friend tells me she came in to find her boss sitting on the floor of his office, cross legged, rocking back and forth rain-man style. No Joke.
Also, they had meetings yesterday (Q & A sessions) and are trying to "remain optimistic" about keeping their jobs until at least June.
Posted by guest , Mar 18, 2008 11:38AM
Seriously, those private bathrooms on 13 were sweet. I could swear though that half the time I went into one it smelled like smoke. One thing I never missed after leaving Bear in 2006 was the pervasive smell of Jimmy Cayne's cigar smoke. That guy smoked it up wherever and whenever he wanted. He thought he owned the place. Now all he owns are a couple million metrocards.
Posted by guest , Mar 18, 2008 11:42AM
Bear people are very cranky right now, so unless you have good news for them, like a job lead, leave them alone. Nothing official has been said, but internal rumors are that 50% will be laid off.
Posted by guest , Mar 18, 2008 11:48AM
Well, Jimmy Cayne lit up a cigar in his office in front of a New York Times reporter last summer. I think he feels that the Clean Indoor Air Act never applied to him. "Asthma, don't tell me you have asthma!" Estimates are he will lose $1 billion in stock value when the sale is completed; does anyone have any idea of what he has left, over than the Plaza apartment and the house in New Jersey?
Posted by guest , Mar 18, 2008 11:49AM
@11:42 tell us something we can't learn watching gasbagarino
Posted by Investorcluzo , Mar 18, 2008 11:49AM
before the jpm employees start snickering (or perhaps they should stop snickering), don't be fooled into a false sense of security. there will be reductions at 277 park too. the integration will serve as yet another reason to purge the ranks. dark days ahead...could be a good time to load up on financials, outlook bleak, everyone calling for more pain (just be sure to diversify or buy a basket).
Posted by guest , Mar 18, 2008 11:52AM
Re: golden girl
We've been told to continue work as normal. Obviously, there isn't much enthusiasm behind the work, but
most folks are moving forward (once the crying subsides).
As far as this report goes, I have not heard of any layoffs yet. Given the overall level of anger yesterday, i would not be surprised if there were a few walk outs however. Last night CNBC filmed some guy leaving the office and announced layoffs had started. Again, that's news to us.
There are a few jpm people here and over the next couple of weeks their presence will increase as they complete their due dilligence and figure out exactly who/what needs to go. After that, I'd expect blood to be spilled.
Posted by guest , Mar 18, 2008 12:00PM
11:49
I totally agree. Bear has some really bright people working in its ranks (it has plenty of sewage as well). There will be a few Bear people running departments when all is said and done. Not many, but a few.
Posted by guest , Mar 18, 2008 12:22PM
The sewage at the Bear is in all the Dept Manager positions and above, PLUS the traders for the most part. It would be fitting to see none of the sewage remaining after the shit settles.
By the way, who's paying to keep the lights on in the Bear Tower? JPM? I hear that Bear's behind on the electric bill.
Posted by guest , Mar 18, 2008 12:34PM
They are being told to continue with business as usual. Most know that the writing is on the wall though.
Layoffs have begun. A huge chunk of middle and back office employees on the trading floors were sent packing yesterday.
Posted by guest , Mar 18, 2008 12:41PM
I graduated in 2001 and was actually at a job interview when 9/11 happened. I was employed by October. Tell that Sophomore kid to suck it up and deal.
Posted by guest , Mar 18, 2008 12:42PM
a little birdy told me that bear would eventually be taken private and that the jpm buy-out would fail.
Posted by guest , Mar 18, 2008 12:59PM
whoa ... (re: 12:42) ... that would make more sense than a lot of what seems to be going on now. Using JPM as a first (shadow) buyer, and then having that fail, and then saying, "oh, well, nobody public wanted them" would make it palatable for them to be taken private. Could never have been done directly that way -- too much outcry that the Fed was backstopping a bunch of the risk, with private risk-takers then getting the bounty.
Posted by guest , Mar 18, 2008 1:07PM
I am more than willing to help any young pretty female undergrads/former employees overcome all the dispair and tension. Anything that I can do to lend a hand...
Thadius T. Jones
Investor
Posted by BruceWayne , Mar 18, 2008 1:10PM
Enter Henry Kravis. Greenberg would shit himself.
Posted by guest , Mar 18, 2008 1:15PM
12:42. I hope you are right. I have been waiting for them to go private for quite some time now. That would be just the right thing.
Posted by guest , Mar 18, 2008 1:27PM
Just think - all these Wall Street firms could've got as stupid talent for probably BILLIONS of 'dollahs' less. Warren Buffet isn't paying these STOOPID salaries and he's trouncing the returns of these firms. Even Mr. Market does better over time research shows. $50 million for some guy? Please. It's robbery. Perhaps if BSC didn't whore themselves to certain employees, they might have something in the bank for a rainy day. Now all they've got is a Jefferson, so to speak. Anybody at BSC still think greed good? Let us know SIX MONTHS from now when you're still looking for a similar position at another firm.
Posted by Investorcluzo , Mar 18, 2008 1:28PM
if true, perhaps billionaire investor joe lewis would like to go back into his till. think about it. for $236 million jpm is getting the bank. that is a pittance to a someone with his jl's means. not to mention, he would only need to come up with $172 million (he owns 9.4% and employees hold 24% of the company - assuming they vote with him). okay, so now what? can't sell the building jamie d locked that down over the weekend? pb business will get (is getting) raided by the competition, can't sell that. maybe you can sell the i-bank, but to who - HSBC? then you have a fire sale of assets. everybody knows you want to sell them, so what are they going to pay you for them? writing is on the wall people...can you get a few more shillings from the good folks at jpm? perhaps, but it ain't gonna be much. hope springs eternal, and I really want to root for you, but at some point you have to face the music.
Posted by guest , Mar 18, 2008 1:29PM
Re: 1:10pm
You know, I was kind of surprised that Lazard wasn't mentioned as a buyer, and instead agreed to advise Bear. I don't picture the two being a cultural fit (I'm not that crazy), but since any other I-bank buyer would probably jettison all but the gems of the Bear I-Bank anyway, it seemed like a good way for a Lazard to get some scale, plus some asset mgt and prime brokerage annuity income.
Posted by guest , Mar 18, 2008 1:38PM
1:28 has it right.
Posted by guest , Mar 18, 2008 1:52PM
Wasn't a representative from Kohlberg Kravis Roberts in attendance at Bear over the past week-end? If they wanted to bid, they could have. Didn't I just read a few weeks ago that Henry Kravis was seeking to restructure some of the debt KKR is holding?
Posted by guest , Mar 18, 2008 2:01PM
@1:29 if you look at the business Lazard has built, Bear is basically in all the businesses they DON'T want. like the entire capital markets division. Lazard has a great niche in advisory and asset management (well, you can debate how good asset mgmt is at Lazard) and would not have been interested in diluting that
Posted by guest , Mar 18, 2008 2:02PM
Also, Lazard is a junk credit so not exactly set up funding-wise to "support" Bear like JPM is
Posted by guest , Mar 18, 2008 2:20PM
You Bear turds slagging the sophomore are bitter losers. Sophomores are not privy to when firings are happening. But the kid had enough of a clue to call and ask about his job. Shit, he probably called in before Jimmy Cayne did that day.
Don't forget: that kid didn't wave in shitty equity tranches at fiddy cent on the dollar. You and your coworkers, however, did. It was a stressful day for you? Good. Your suffering is your own fault, but now you're taking us along for the ride. Don't expect pity, I'm saving mine for the blameless -- like that kid and people who PAY their bills.
Posted by guest , Mar 18, 2008 2:40PM
they take interns as sophomores??
Posted by guest , Mar 18, 2008 2:45PM
2:20 - suck my dick
Posted by guest , Mar 18, 2008 2:55PM
2:45 - Waaah! Maybe Jimmy Cayne will give you a puff on his pipe and tip you $1 for it.
Posted by guest , Mar 18, 2008 2:58PM
anyone who worked at bear who held any stock anywhere who wasn't "forced" (coerced?) to do so is a moron and you know it.
anyone who feels sorry for any person at bear who is familar with wall street culture is a moron. and yes, that includes the every employee.
tough fucking luck and stop living on the margins.
Posted by guest , Mar 18, 2008 3:03PM
@2:45 - I am on the 14th floor. Cum quickly, before those fascists at jpm cum and dominate us.
L. Craig
Posted by guest , Mar 18, 2008 3:05PM
we're going to find just how bad jpm wants bear, because the street is going to force them to pay up for it.
and quit jerking yourself off hoping about for private equity or a white knight or whatever financial masturbatory fantasies you carry.
the united states federal government has insured that it's jpm or nobody.
jpm gets to sit there and find out how many investment partnerships still want to clear through bear, and how many b/d's still want to clear through bear.
if everyone stops doing business with bear, then there is no threat to counterparties the financial system and bye bye.
hefdge funds officially rule wall street deal with it.
Posted by guest , Mar 18, 2008 3:15PM
10:50 you are a tightwad. no one is impressed.
Posted by guest , Mar 18, 2008 3:19PM
Do you know how insane it is on so many levels to buy these shares 200% above the deal price just so you can vote against the deal. Yeesh.
Smart shareholders are getting out in the $6-$8 range otherwise sorry boys you are sunk.
Posted by guest , Mar 18, 2008 3:23PM
@3:15
think the poster intended to make that statement about goldman
Posted by guest , Mar 18, 2008 3:34PM
@3:19 Didn't sharpen my pencil on this, but if you're a bondholder isn't it worth paying a few bucks for the stock in order to vote against the deal?
Posted by AJ , Mar 18, 2008 3:36PM
Why would a bondholder vote against the deal? They get full recovery if JPM buys Bear. I doubt they get full recovery if Bear liquidates...
Posted by guest , Mar 18, 2008 3:39PM
@3:34 here. as I said, havent looked at this closely, don't know how the deal will impact the bonds, but was told that that was a reason people are buying the stock.
Posted by guest , Mar 18, 2008 3:50PM
@3:34 - Are you smokeing Jimmy's shit?
Bondholders are likely screwed if no buyer and JPM probably is best able to integrate what they want and liquidate the rest in orderly fashion.
Posted by BruceWayne , Mar 18, 2008 3:54PM
An invitation to speculate,
What is going to happen when Ciofi or others are indicted? I still don't know who but someone was flipped by prosecutors in Brooklyn.
Posted by guest , Mar 18, 2008 4:08PM
if you sold bear cds's in large amounts as a hedge fund, it could very well pay to buy stock and vote for the deal (especially since at even 4-5 a share...100 mil down and youve got 25% of the company).
Posted by guest , Mar 18, 2008 4:21PM
Why would the feds in the Eastern District of New York (Brooklyn) be investigating Cioffi, rather than the feds in the Southern District (Manhattan)? Cioffi's deals were all conducted in Manhattan.
@2:58, I think a lot of Bear Stearns employees were given bonuses in 2007 in BS stock in lieu of cash. Should they have refused the stock and taken nothing to avoid your contempt? Wait, don't answer. Your wholesale condemnation of 14,000 people speaks for itself.
And don't bring out the waa-aa-ambulance comment. That stuff is so overworked.
Posted by guest , Mar 18, 2008 4:21PM
"don't know how the deal will impact the bonds,"
seriously, do you even have a job? do you have any idea what is going on here at all or are you getting your news from USA Today?
Posted by BruceWayne , Mar 18, 2008 4:28PM
@4:21pm
I dunno, thats a good question, but I do know that when the grilling started it was from Brooklyn. Maybe they are both in on it. *shrugs*
Posted by BruceWayne , Mar 18, 2008 4:31PM
@4:21pm
follow up, i knew i wasnt dreaming
http://dailybriefing.blogs.fortune.cnn.com/2007/12/18/prosecutors-loaded-for-bear/
Posted by guest , Mar 18, 2008 5:12PM
Have some tact kid. You had the audacity to call on the day Bear is brought to its knees? You have some cajones.
Posted by guest , Mar 18, 2008 5:24PM
@4:21
show me one bear employee who showed any compassion for employees of say worldcom and you can continue to cry in your cheerios.
people who live on the margins know better.
14,000 kids died in africa today. do you really care? i do.
until i receive proof that some bear employee died from excessive papercuts as a result of packing his boxes too hastily, i'll reserve my empathy and sympathy for others more deserving of it.
you should too.
have a nice day.
Posted by guest , Mar 18, 2008 5:25PM
everyone is a capitalist until they have no capital.
Posted by guest , Mar 18, 2008 5:31PM
what's africa and why should i care?
Posted by BruceWayne , Mar 18, 2008 5:40PM
@5:31pm
It's where Harry Winston and De Beers get all those shiny rocks.
Posted by guest , Mar 18, 2008 5:46PM
there is no place on earth where cretins laugh at the misfortune of others than wall street.
if anyone who posts here has actually ever worked on wall street, then you know the truth of this statement.
what goes around...
Posted by Anal_yst , Mar 18, 2008 5:57PM
@ 5:46
Your mom?