Bear Stearns on brink of break-up

[kickysnana]

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3558485.ece

<snip>
Bear Stearns stands on the brink of collapse or break-up this weekend. The bank’s woes come as Wall Street braces itself for another week of pain.

Some of America’s biggest financial institutions are set to announce first-quarter figures showing fresh losses and write-downs of billions of dollars.

<snip>

Richard Bove, a banking analyst at the Punk Ziegel investment bank, said he thought a buyout was likely to fail, as it did with Britain’s Northern Rock. “I don’t think the Fed will approve a purchase,” he said. “Customers are leaving in droves, so what would they be buying?”

<snip>

Huge loans for private-equity deals, coupled with a loss on its holding in the Chinese bank ICBC, are behind the write-downs. Goldman is also expected to unveil a 60% drop in earnings.

Lehman Brothers, which secured a new $2 billion credit line on Friday, is expected to reveal write-downs of more than $1 billion. Morgan Stanley, meanwhile, is poised to reveal a further $500m in write-downs.

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Article talks about expected Fed rate cut and other related events.

[Hydra]

1. Hmm...

I wonder when we find the bottom for this deliberately created crisis. Expect some kind of ugly legislation coming from Bushco hailed as the "solution."

[BlueManDude]

2. Somewhere Larry Kudlow weeps.

[lib2DaBone]

5. LOL.. Larry Kudlow Weep Fest

As if anything could change drug addict Larry Kudlow. (You all do know that he is a recovering Heroin Addict?) I wish him well in his quest for sobriety.

[Donnachaidh]

3. so when will they be stringing emergency nets around the buildings on wall street?

All this BS with the government bailing these a-holes out has to stop sometime. I'd like to see some of these CEO's have their accounts seized, and their homes and personal wealth seized to pay back the bail out.

Hell -- they do that to drug dealers - why not the people who thought THEY had a license to steal? :evilgrin:

[CrispyQ]

4. Seizure of CEO assets.

Harr! If only!

Great idea! :thumbsup: :thumbsup: