My Trading Adventure

America's Bankrupt Banks(inside the meltdown)

CP TEH
Publish date: Wed, 31 Aug 2011, 08:12 PM
CP TEH
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All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
Part I


Part II


Part III


Part IV


Part V


http://money.cnn.com/2008/03/28/magazines/fortune/boyd_bear.fortune/


Taken from Wikipedia

 
The Bear Stearns Companies, Inc. (former NYSE ticker symbol BSC) based in New York City, was a global investment bank and securities trading and brokerage, until its collapse and fire sale to JPMorgan Chase in 2008. The main business areas, based on 2006 net revenue distributions, were capital markets (equities, fixed income, investment banking; just under 80%), wealth management (under 10%), and global clearing services (12%).

Bear Stearns was involved in securitization and issued huge amounts of asset-backed securities, which in the case of mortgages were pioneered by Lewis S. Ranieri, "the father of mortgage securities".[1] As investor losses mounted in those markets in 2006 and 2007, the company actually increased its exposure, especially the mortgage-backed assets that were central to the subprime mortgage crisis. In March 2008, the Federal Reserve Bank of New York provided an emergency loan to try to avert a sudden collapse of the company. The company could not be saved, however, and was sold to JP Morgan Chase for $10 per share, a price far below the 52-week high of $133.20 per share, traded before the crisis, although not as low as the two dollars per share originally agreed upon by Bear Stearns and JP Morgan Chase.

The collapse of the company was a prelude to the risk management meltdown of the Wall Street investment bank industry in September 2008, and the subsequent global financial crisis and recession. In January 2010, JPMorgan discontinued use of the Bear Stearns name.

TEH : Most watch movies, I watched these good collections of video clips ... nothing could beat the suspense of collapse of Bear Stearns, LehMan Brothers and much more.

TEH
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Discussions
Be the first to like this. Showing 2 of 2 comments

Alan Wong

rumours is a killer of bank stock, everyone is scared by crisis of confidence. But what uncle buffet did to bank stock, he enjoy the crisis and gain return from his investment.

2011-09-01 07:51

stephenlee

America is a free World where there is alots of freedom and financial transparencies, Nothing to hide and shout about unlike bank over here which has been run down 3 times and yet save by taxpayers' money.

2011-09-01 15:33

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