BSC collasped to save JPM??

Discussion in 'Trading' started by cgtrader, Mar 20, 2008.

  1. Jim Willie on the BSC situation:

    "In truth, we might later learn that Bear Stearns helped to bail out JPMorgan, in helping to shore up its credit derivatives, in providing some emergency collateral, soon to bust, to prevent a JPMorgan failure!!!"

    "JPMorgan owns $7.778 trillion of credit derivatives, two and a half times as much as Citigroup."

    "And lest one forget, Enron and Bear Stearns have a common denominator in JPMorgan being the key player in the operations and agent during the demise of the two firms."

    "When the USFed frees JPM from liability on any losses from collateral submitted by Bear Stearns, one has to giggle since the USFed is JPMorgan"

    My take: "BSC was ganged up on to make sure JPM could stay alive and buy back their counter-party risk on the cheap"
  2. I am playing otm calls and otm puts on BSC, because the bid/ask spread is extremely wide.

    I love this play.

    It is the most sexy play ever, and if I can make a ton of money, b/c it fails, or because BSC forces a much higher bid, or because a bankruptcy occurs, it's even better for me.

    A bankruptcy filing would allow plaintiffs, who are being offered a measly $2.33 a share by JMP, to shine a floodlight up JPM and BSCs moduses (modi?) operandi, and to uncover things, people, and methods - maybe even JPM and BSCs book of biz, that they would never want to surface.
  3. Already is happening. All Bears' calls are taped :p
  4. Daal


    your using JUL otm options?