what about a higher bid? cant china or some arab country come and say $5 a share? i think at $2 you buy BSC
the delirium has finally set in for longs, such as peil. what's next, call your broker and demand they bust the trade? face it, you lost 95% of your investment, accept it and move on.
You are correct. It's all about the counter-party risk. People on ET don't seem to have a clue about this.
This is at least the 3rd time since 1900 JP Morgan has worked with Gov't to try to stave off a crash ( didn't succeed in '29 ). BSC may be worth a lot more than $2 but Gov't didn't want the market flooded with BSC assets so they approved this "deal" in a terrific hurry to avert a crash. This way BSC assets can be managed with less desperation. In effect, the Gov't screwed BSC holders to avoid a market collapse. FED will make available to JPM all the $ they request.
If BSC is actually worth $80, then JPM shares must be a buy? This will go down in history as one of the best deals ever... or maybe BSC will take JPM down too?
A lot of duplication in business lines, Balance sheet asset values are questionable. Clearing business accretive, not sure what else is.
So is JPM getting a steal here? I guess they do as they get a good margin of error for most of the risk they take on their balance sheets and they basically get the real estate for free.
So basically, maybe not such a good deal after all, might just be a case of we have to take them out because they are our biggest counterpart?