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DOW JONES INDUSTRIAL AVERAGE INDEX |
Jim Rogers brought this up in his interview with Bloomberg .. I don't
know if it's true:
In February BSC CEO's and CFO's received big bonusses. If BSC would
have been declared bankrupt, rather than bought by JPM, the CEO's and
CFO's would have to hand in their billion dollar bonuses.
> Wednesday - On a CNBC Interview, Bear Sterns CEO Alan Schwartz says he
> is not aware of any imminent threat to the banks liquidity, and is not
> sure where the rumor started.
> Wednesday Night - Supposedly this is when Chase and the Fed were
> approached about Bear Sterns liquidity issues.
> Thursday - Stock opens down from about $61 to $58.
> Friday - Stock tanks from $57 to $30
> Weekend - Deal with Chase is made public purchasing Bear Stearns at $2/
> share. It looks like this was organized by Henry Paulson (Secretary
> of the Treasury - former CEO of Goldman Sachs). Shares tank further
> from $30 to $2.
> Several things need to be investigated here -
> 1.) The comment by Alan Schwartz on CNBC. It was clearly an outright
> lie what he said. He obviously knew there was an issue at that time.
> 2.) Obviously on Friday the "insiders" knew something was happened as
> volume flooded onto the market.
> 3.) The timing of the Chase deal is very fishy. It was finalized on a
> weekend when 99.9% of traders don't have the ability to trade shares.
> So basically by the time the market opens on Monday, every shareholder
> is screwed.
> 4.) How a company can go from $80+ in book value per share, to $0 in 2
> days needs to be investigated.
> 5.) It is slightly odd that a Henry Paulson, former Goldman Sachs CEO,
> seemed to play an integral role in this. If any company is helped by
> the shutdown of Bear Sterns it will be Goldman Sachs.
> 6.) Why is Chase getting a sweetheart dealing getting Bear Sterns for
> $2/share, yet not taking any risk on liabilities? They get Bear
> Sterns assets, but the Fed is taking all the risk if the collateral
> fails.