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The Texas Blue
Advancing Progressive Ideas

Odd Developments in the Bear Sterns Buyout / Bailout

So get this: on Sunday, JPMorgan was in talks with Bear Sterns about raising the purchase price from $2 to $10 per share, as Bear Sterns stockholders were more or less livid with rage about the selling price being so low. Bear Sterns stock increased once the news got around, but the Fed isn't happy. As a new price must be approved by the Fed, something has to give or the deal might be off.

$2 Is A Gift

Those folks ought to be glad to have $2 a share. Considering the real value of a share of Bear Stearns is way in the red, $2 is a gift.

A gift with the risk mortgaged by the taxpayer. You're welcome, Bear Stearns shareholders. is reporting that J.P. Morgan has raised the price to $10/share.

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