tag:blogger.com,1999:blog-30643134.post6193253350663982119..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: The PrecipiceAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-30643134.post-2518811495094085352008-03-17T21:42:00.000-05:002008-03-17T21:42:00.000-05:00Why $2 then and not something a little higher? A ...Why $2 then and not something a little higher? A reporter asked Paulson today when he was going to 'bail out' the little guy, the homeowner. Paulson made it a big point that Bear management got wiped out.<BR/><BR/>Why not $0? This keeps it from being a 'credit event' and CDS's on BSC debt don't pay off. I would love to know who had what riding on a default.<BR/><BR/>I'm also dying to know what the 'conforming accounting', mentioned as part of the transition costs, refers to. Maybe Bear or JPM have transactions with each other that don't net to zero.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-20740663318781535202008-03-17T21:28:00.000-05:002008-03-17T21:28:00.000-05:00JPM is putting up a charge of $6b or $50/share for...JPM is putting up a charge of $6b or $50/share for Transition expenses, including litigation. If they could use $1 b to settle everything, that would be another $8/share. I don't think it will happen that way, but why not pay the shareholders then the class action lawyers.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-36089078975175087752008-03-17T20:01:00.000-05:002008-03-17T20:01:00.000-05:00What if JPM never takes over BSC in the end? BSC ...What if JPM never takes over BSC in the end? BSC has 28 days to get their ship together, deleverage, and then the deal just falls apart. JPM gets some assets to walk away. Someone could have bought most of the company today at 4.00. in the open market.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-68006443888821005252008-03-17T17:05:00.000-05:002008-03-17T17:05:00.000-05:00Spreads on interest rate swaps... are substantiall...<I>Spreads on interest rate swaps... are substantially tighter today</I><BR/><BR/>Deep out-of-the-money Fed puts just went up in value. Higher volatility, I guess, since the strike is about where it was before.Walt Frenchhttps://www.blogger.com/profile/00873789914522579055noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-44167428278806722102008-03-17T12:52:00.000-05:002008-03-17T12:52:00.000-05:00Why the hell is Bear stock trading at $4?!if i was...<I>Why the hell is Bear stock trading at $4?!</I><BR/><BR/>if i was that joe lewis guy who just dropped $1bn on bear, i'd be spending another couple of hundred million buying as much bear stock as i could.<BR/><BR/>if you can get enough stock to vote against jp taking it over, you are then holding the fed to ransom, if you are prepared to lose your investment. pay $4, demand $30/50/80 a share whatever, and see what you can squeeze out of them. for the fed/jp, it's a choice of spending another few billion or letting BS go bust. you never know...maybe someone could just about pull that off!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-52555783019349697162008-03-17T10:25:00.000-05:002008-03-17T10:25:00.000-05:00There is arbitrage pressure now - as JPM stock go...There is arbitrage pressure now - as JPM stock goes higher, BSC gets dragged along as well.Anonymousnoreply@blogger.com