LaxTV Forums | A Forum About The MCLA

Should be an interesting week in the markets, with this late-breaking news...

NEW YORK - JPMorgan Chase said Sunday it will acquire rival Bear Stearns in a deal valued at $236.2 million — or $2 a share — a stunning collapse for one of the world's largest and most venerable investment banks.

The last-minute buyout was aimed at averting a Bear Stearns bankruptcy and a spreading crisis of confidence in the global financial system.

The Federal Reserve and the U.S. government swiftly approved the all-stock deal, showing the urgency of completing the deal before world markets opened.

Bear Stearns shares close Friday at $30 a share. At their peak, the shares traded at $159.36.

I'm glad that our economy is "fundamentally sound", otherwise one might think that we aren't close to the bottom.

I remember reading a profile in the Wall Street Journal about the CEO of Bear Stearns last summer after their hedge funds were melting down, and how he was very busy at bridge tournaments and making his weekly tee time at his club in NJ. I flew into Detroit this past Wednesday and saw a sign welcoming the American Contract Bridge Championships and wondered if he was attending - sure enough, he was. The article above also mentioned that the sale price of the firm was 1% of its value just 16 days ago. I'm sure the shareholders are pleased with his performance - I wonder if he'll get his annual bonus?

Jim Cramer's backpeddling from yesterday. He must have been distracted last week while his college buddy Spitzer was taking a fall. On the other hand, Erin Burnett could tell me that my house was on fire and that I was soon going to die and I would still be asking her if I could draw her a nice warm bath.

[youtube]http://youtube.com/watch?v=AyGc_rlF8aA[/youtube]