stunning collapse JPMorgan Chase it will acquire rival Bear Stearns

[autofx]

NEW YORK - JPMorgan Chase said Sunday it will acquire rival Bear Stearns in a deal valued at $236.2 million, a stunning collapse for one of the world's largest and most venerable investment banks.


JPMorgan Chase & Co. said the $2 a share, all-stock deal has received the required approvals from the federal government and the Federal Reserve. Bear Stearns shares close Friday at $30 a share.

The Fed will provide special financing to JPMorgan Chase for the deal, JPMorgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets.
what is amazing is bear stock was trading $79 on march 6 now its worthless. its going to be bad day for stock market on monday.

what other bad news will come later weeks hummm.

[sweeps]

its going to be bad day for stock market on monday.

what other bad news will come later weeks hummm.

Let's lop off another 20% off the stock market. I'll be buying.

[disneysteve]

Wow! That is a huge deal. I agree. tomorrow will probably be ugly on Wall Street. Who was it that said the best time to buy is when there is blood in the streets?

[banditfist]

what other bad news will come later weeks hummm.

Lehman Brothers is next up to the confessional window. So glad I went to cash in November.

[sweeps]

Merideth Viera is doing the Today show from the floor of the NYSE this morning. Things must be serious...

[Ima saver]

Looks like it will be a bad day today!!

[aida2003]

Looks like it will be a bad day today!!

If my today's investment contributions buy cheap stocks, I'll have no complains

[Scanner]

THis is good news for my silver.

[Slug]

Did anyone have put options in BSC? Anyone considering put options in LEH?

Stunning.

[sweeps]

On Marketwatch's front page:

'Financial markets are as close to collapse as I've seen in my career.'
— Chris Rupkey, chief financial economist, Bank of Tokyo Mitsubishi

[jc3900]

What is funny my dad said that the bear sterns building is worth somewhere in the billions of dollars.

[Merch]

Yep the 45 story building is worth about 1.5 billion.

As for puts on LEH, I wouldn't be a buyer. All news and rumors already priced in.

I am actually thinking of going long a basket of financials. I am thinking ETF, but I like Goldman, Citi, and might like Lehman. Lehman has 25% liquidity while BSC had like 9%.

Words of advise: Never try to catch a falling knife. So, I am on the sideline waiting for the VIX to calm down.

[Slug]

Yep the 45 story building is worth about 1.5 billion.

As for puts on LEH, I wouldn't be a buyer. All news and rumors already priced in.

I am actually thinking of going long a basket of financials. I am thinking ETF, but I like Goldman, Citi, and might like Lehman. Lehman has 25% liquidity while BSC had like 9%.

Words of advise: Never try to catch a falling knife. So, I am on the sideline waiting for the VIX to calm down.

Yeah, I'm on the sidelines as well, but puts on LEH would be more like forcing the knife deeper

[Aleta]

My SIL works for Lehman Bros. I wonder how she is doing? I think that they already took a cut in pay this past year.

[Broken Arrow]

Amazing. Simply amazing.

Value fund managers from even reputable brokerages (including Vanguard) have taken a hit due to this.... Who would've thought that Bear would turn out to be a value trap?

Oh yeah, there is definitely blood on the street....

But then, it's all the more reason that now is a great time to get into financials.... Of course, Bear does serve as a good warning to be careful when wading into this sector right now. There are speculations that Bear is only the beginning....

I too like Goldman and Citigroup, though Citi more between the two. Both are stricken with subprime, but I don't think Citi will fall due to:

1. It's sheer size.
2. They haven't sold off their more lucrative side businesses yet, which is always a good sign.
3. I've read interviews from former and current CEOs, and I believe that they have a good grasp of the situation. They just need time to correct it.

Goldman, on the other hand, is smaller but they've made a few fancy moves that managed to pay off and shore up against the subprime losses. Do they have the skill to keeping dodging bullets? A weighty question, in my opinion, relative to their rather expensive share prices.

But again, that's just my personal opinion. So, please take it with a grain of salt.