J. P. Morgan and Fed Move to Bail Out Bear Stearns
nytimes.com
The Fed, through its discount window, will provide non-recourse, back-to-back financing to JPMorgan Chase, the commercial bank said. JPMorgan said it does not believe this transaction exposes its shareholders to any material risk.
JPMorgan Chase also said it is working with Bear Stearns on securing permanent financing or other alternatives for the company.
Alan Schwartz, president and chief executive officer of Bear Stearns, said in a separate statement: "Bear Stearns has been the subject of a multitude of market rumors regarding our liquidity. We have tried to confront and dispel these rumors and parse fact from fiction.
"Amidst this market chatter, our liquidity position in the last 24 hours had significantly deteriorated. We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations."
14-Mar-08 09:13 ET In Play Bear Stearns: JPMorgan Chase and Federal Reserve Bank of New York to provide financing to Bear Stearns (57.00 )
13-Mar-08 11:34 ET In Play Bear Stearns: Hearing Deutsche Bank out defending BSC (54.30 -7.28)
12-Mar-08 09:19 ET In Play Bear Stearns CEO Alan Schwartz appears on CNBC; says liquidity position has not changed and their balance sheet has not weakened at all (62.97
10-Mar-08 12:04 ET In Play Bear Stearns: CNBC commentator discusses weakness in financials, saying speculation surrounds BSC (62.35 -7.59) -Update : Says one rumor is that BSC tried to shop their clearing operations a few weeks ago, which was a sign how badly they need cash, but they couldn't find a buyer.
25-Feb-08 10:36 ET In Play Bear Stearns retests last wk highs at 85.29 and pauses (85.06 -0.10) -Technical : Note that its 50 ema is at 86.62.
In one month, It drops 30+%
09-Jan-08 12:41 ET In Play Bear Stearns CEO in CNBC interview says he thinks they are adequately/conservatively marked, and they're comfortable and confident in terms of where they are today (72.26 +1.08) -Update : According to CNBC, BSC's CEO said there's no need to raise additional capital.
The CEO lies as the ship is sinking
19-Dec-07 08:13 ET In Play Bear Stearns Chiefs to skip bonuses - WSJ (92.59
03-Dec-07 15:13 ET In Play Bear Stearns: Credit Suisse widens Bear Stearns Q4 loss/shr est to $2.45 from $2.00 - Reuters (97.85 -1.85) :
28-Nov-07 11:00 ET In Play Bear Stearns to cut 650 positions - DJ (99.15 +3.75)
14-Nov-07 14:30 ET In Play Bear Stearns short term rating cut to F1 from F1+ by Fitch- Bloomberg (107.95 +7.08) -Update :
05-Oct-07 07:49 ET In Play Bear Stearns: Prosecutors begin a probe of funds - WSJ (127.61 )
04-Oct-07 12:07 ET In Play Bear Stearns CEO says firm would be interested in potential investment from China or Middle East that added value
27-Sep-07 08:44 ET In Play Bear Stearns: An investment by a Chinese financial institution is more likely and would be a modest credit positive - HSBC (123.00 ) : HSBC notes that The New York Times reported that BSC is in "serious talks" to sell as much as 20% of the firm.
17-Aug-07 07:39 ET In Play Bear Stearns cuts mortgage jobs as share advance signals rescue - Bloomberg.com (116.44 )
07-Aug-07 17:09 ET In Play Bear Stearns bonds approach junk in new note sale - Bloomberg.com (116.89 +3.08)
06-Aug-07 03:23 ET In Play Bear Stearns announces management changes (108.35 ) : Co announces that, effective immediately, Alan D. Schwartz has been named the sole president, and Samuel L. Molinaro, Jr. will become chief operating officer in addition to his current duties as chief financial officer. Warren J. Spector has resigned his positions of president and co-chief operating officer, member of the Executive Committee and member of the Board of Directors of Bear Stearns
03-Aug-07 10:00 ET In Play Bear Stearns outlook revised to negative at S&P (111.18 -4.52)
31-Jul-07 18:48 ET In Play Another Bear Stearns hedge fund is in trouble - WSJ (121.22 -6.03) -Update : The Wall Street Journal reports BSC already forced to shut two hedge funds that bet heavily on the risky subprime-mortgage market, is now facing big losses in a third fund that has roughly $900 mln in mortgage investments
18-Jul-07 09:46 ET In Play Reversal Alert: Bear Stearns trades to session highs after gapping down 3% on news that its troubled funds are nearly worthless (139.84 -0.07)
29-Jun-07 12:33 ET In Play Bear Stearns: CNBC commentator notes that his sources are telling him that the SEC has made a document request to BSC (141.83 -2.21) -
22-Jun-07 15:15 ET In Play Bear Stearns: Fitch places Bear Stearns' 'CAM2' CDO asset manager rating on watch negative - Reuters (143.41 -2.40) -Update :
22-Jun-07 06:50 ET In Play Bear Stearns plans $3.2 bln fund rescue to halt fire sale - Bloomberg.com (145.81 )
16-May-07 07:10 ET Wachovia downgrades Bear Stearns (BSC 150.55) to Market Perform from Outperform based on tougher mortgage market conditions, lack of exposure to international equity issuance, and lower EPS estimates for 2007 and 2008. This was the first clue that the company was in trouble. They reduced estimates!
22-Mar-07 14:00 ET In Play Bear Stearns: Director buys 10k shares at $150.29 (151.27 -1.24) :
15-Mar-07 10:29 ET In Play Bear Stearns on call says sub-prime represents about 3% of their mortgage business, so a small part of overall mortgage business (148.73 +3.44) -Update :
15-Mar-07 08:00 ET In Play Bear Stearns beats by $0.02 (145.29 ) : Reports Q1 (Feb) earnings of $3.82 per share, $0.02 better than the Reuters Estimates consensus of $3.80; revenues rose 13.6% year/year to $2.48 bln vs the $2.49 bln consensus.
All the signs were there. BSC was sinking all year despite lying to the media. Focus on the negative news and negative surprises. When kep people leave, it is never good. |
