I don't think the losses are that bad, this is more of a liquidity event. JPM is def. making out like a bandit.
How much did Jimmy Cayne, the Chairman who smoked pot and played cards while Bear whored and the other 85 or so executives take out over the past few years? Maybe 5 bill????
A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next-door neighbor. Before she says a word, Bob says, 'I'll give you $800 to drop that towel.' After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds, Bob hands her $800 and leaves. The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom, her husband asks, 'Who was that?' 'It was Bob, the next-door neighbor,' she replies. 'Great!' the husband says. 'Did he say anything about the $800 he owes me?' Moral of the story: If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.
So glad I jumped on the wagon when I did...http://elitetrader.com/vb/showthread.php?s=&postid=1834375#post1834375 Tomorrow should be interesting to say the least.
You're 100% right, they're carryin' a lot of worthless crap on their books. If it was just about liquidity someone would buy the paper on their books for pennies on the dollar and BSC would be able to have kept the profitable businsess.
glad i stayed the fuck away from this one, although some otm puts would be nice. Can someone answer this: BSC closed at 30 friday, now the offer from jpm is $2. Does that mean the stock basically just dropped from $30 to $2 on monday open? So all the bottomfeeders who bought at $30 on friday are completely screwed (~93% drop)? is this correct? thanks.