JP Morgan has raised its Bear Stearns offer from $2 to $10. [NYT]
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The damage is done, though.
You could say that again…one guy in Dallas, who heads an investment firm, stood to lose $750,000,000…
Hope none of his investors had mob ties…
Hmm. I heard just this weekend that $2 was a very generous offer as it was.
@DrGirlfriend: I agree. $10 is too much.
I can see only these coming out of this… salary increases to the CEOs for their role in the brilliant idea, higher fees to Chase banking and credit customers and reduced dividends to JPM shareholders. Sounds like a plan to me!
It’s nice how all the Wall Street Execs look out for each other. They profited from taking advantage of sub prime mortgages, and now that market has collapsed, they leave the bill with the taxpayers. Now JP Morgan decides to give more money to the Bear Sterns shareholders, nice.
It’s funny how people are so quick to point out the stupidity and moral failures of people who borrowed using sub prime mortgages and how they deserve to lose their homes, yet when the Wall Street CEO’s who made equally stupid decisions suddenly find their stock valued at $2, the Fed and JP Morgan come to the rescue.
The Fed and Investment firms would never in a million years let subprime mortgage defaulters off the hook, yet the big companies that knowingly sold mortgages to people with no credit are taken care of. Can the average person really say that capitalism is working in their favor?
Damn!! Could have doubled my money!!
@Fidel on the Roof: I gained 30% because I bought slightly high at $7 last Tuesday expecting more of a rally. I don’t play with much in my brokerage, but I’ll gladly take the free $150.
@formatc: Nice play!
@icemanik:
Actually it was the Fed and JP Morgan that valued Bear at $2; leaving it to a free market, Bear’s stock price close prior to the buyout offer was around $40. JP Morgan and the Fed didn’t rescue Bear’s shareholders; they feel that they rescued the market from the inevitable collapse that might have happened if a run on Bear had continued.
Go ahead and rail about Wall Street, they probably deserve it. But please have your facts in order first.