Did Bear get a capital infusion from one of those SWF last year, and if so who? What major player is going to take a MAJOR hit on this news?
British Billionaire Joseph Lewis bought north of 11MM shares of Bear at average price of 107/sh for 1.2B USD. Today that stake is worth a little over 22MM USD.
Just a quick question to experienced guys. What happens to brokers like IB, Scottrade, ETrade if they had lot of people who had bought the shares on margin and now there accounts are upside down. Will this put lot of small brokers in trouble?
I think CITIC had a stock swap with Bear Stearns a couple delusions and falling knife episdoes ago. I wouldn't be surprised if CITIC's deal guy reponsible for this one is now assembling toxic Chinese toys for $1 an hour.
If BSC is the only stock in the suckers' portfolio, the brokers may be left holding the bag -- or i guess the repo man will be getting a call from the brokers to try to reclaim something. Otherwise the broker will rip off the suckers' faces by selling the suckers' other stocks from under them to repay the margin loans.