bmugf...@gmail.com

Timeline -

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.