Bear Shareholders are trying to pull a John Meriwether

These folks are so greedy that they are willing to put the entire global financial system at risk. Personally, I think the Fed should just walk away from the deal. Let Bear collapse. They were lucky to get $2.

Comments

[Tangurena]

I think they finally read the contract and found a way to squeeze JPM's balls:
>One sentence was "inadvertently included," according to a person briefed on the talks, which requires JPMorgan to guarantee Bear’s trades even if shareholders voted down the deal. That provision could allow Bear’s shareholders to seek a higher bid while still forcing JPMorgan to honor its guarantee, these people said.

(from 2nd page of the NY Times article)

So now this is going to turn into a game of chicken.

[Tangurena]

And this one discusses the magic sentence:
http://dealbook.blogs.nytimes.com/2008/03/24/bears-big-guarantee/

[tdl]

The Fed shouldn't have gotten involved in the first place. To quote Jimmy Rogers, this is "socialism for the rich!"

Regards,
TDL

[tdl]

A quick question. Is the clause that Tangurena pointed out even enforceable? Forgive the limitations of my MBA mind, but does that clause even rise to the standards necessary for a contract? Chicken indeed!

Regards,
TDL