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The sale of Bear Stearns: financial power crisis is just beginning
The Fed frightened investors panic must diffuse hit bottom
Save the soldier bear $ 2 per share acquisition by Morgan
Bear Stearns in New York Manhattan headquarters office building from JP Morgan office building, high 45 layer, estimated at $ 12 billion.
According to http://finance., recall last November and the United States's fifth largest investment bank Bear Stearns Companies signed the swap agreement is sucked CITIC Securities now perhaps somewhat apprehensive.
United States local time on the evening of 16, Bear Stearns and JP Morgan have no any aura and signed the acquisition agreement, Morgan offer of only $ 2 per share, total value of approximately $ 2.4 million, this price is Bear Stearns 14th annual unit closing price of $ 30 for shrinking 93%.
The insider told reporters yesterday morning, Morgan this deal "and do not have much time to think," is in State of emergency is made. While the price of us $ 2, do not like how it looks, unreasonable, "price itself consider the risk".
Lightning deals
From 14, fed and supplied to bear Stearns Mogendatongyinxing declared emergency funds to 16, Morgan announced the acquisition plan, less than 3 days before and after time, this can almost be said that Wall Street is lightning deals.
"In the past 24 hours, the company's cash position deteriorated sharply. "Morgan at 14, suddenly announced that the Fed has reached agreement with Morgan, emergency Protocol in 28 days by Morgan large emergency financing to bear Stearns. This is since the last century since the great depression in the 30s the Fed first loan in this manner.
Message after Bear Stearns announced once fell 53%, all-time highest decline, finally sink $ 34.38. 2008 so far, the Bear Stearns stock price has fallen by about 60%.
At this point, most embarrassing than a week ago also optimistic claims towards the end of the "subprime mortgage has" standard and poor 's. Sandp in this famous report pointed out that all major financial institutions as a result of the subprime mortgage crisis caused by impairment of assets is most evident.
In fact, sandp has not completely wrong, Bear Stearns are planted in rumors instead of subprime mortgage. Last Monday, the United States stock market began to spread bear there may be a liquidity crisis. Subsequently, an increasing number of lenders and clients begin to withdraw from their funds bear, "as a result, the bear's excess liquidity swiftly away." United States Securities and Exchange Commission (SEC) reluctantly said afterwards.
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