Less than ten cents on the dollar
Filed Under (Business, Politics) by Don C on 17-03-2008
Some bailout. I’m sure the government had to convince JP Morgan (like, say with a $200B credit facility) to take the deal.
Pushed to the brink of collapse by the mortgage crisis, Bear Stearns Cos. agreed — after prodding by the federal government — to be sold to J.P. Morgan Chase & Co. for the fire-sale price of $2 a share in stock, or about $236 million
Or one could have said, “One of the major contributors to the mortgage crisis, Bear Stearns…” But that doesn’t help the narrative that it’s Bush and the Republicans fault.
But Damn, Bearns (short for Bear Stearns) must have more than $250 million in liquid assets… which means Bearns must be so insolvent that even if they liquidated everything to the last paperclip they would still need billions more to come even.
Of course I don’t know any of this for sure, but it seems likely after considering it a bit. Why in the world would JP Morgan take on Bearns? If it were a good deal there would be a line of suiters making counter offers of eleven cents on the dollar.
