fed bail out: Bear Stearns: is that bail-out, or "plunger protection" working the market as a whole ?
- 03/16/08 11:19 PM
A forced marriage by the FED FED must stop the chain reaction before it happens or almost every major finanical institute would face a severe counter party risk based write down(much more uglier than sub-prime). cheap load(arranged friday) to BSC is useless too as no one would think that is enough and the run would continue and BSC would be forced to file chapter 11. So they need some big guys to boost the confidence, i.e. JPM. JPM doesn't really want it or else what would be the difference between 1.28B(that is more likely to be approved quickly by the share … (7 comments)
A forced marriage by the FED FED must stop the chain reaction before it happens or almost every major finanical institute would face a severe counter party risk based write down(much more uglier than sub-prime). cheap load(arranged friday) to BSC is useless too as no one would think that is enough and the run would continue and BSC would be forced to file chapter 11. So they need some big guys to boost the confidence, i.e. JPM. JPM doesn't really want it or else what would be the difference between 1.28B(that is more likely to be approved quickly by the share … (7 comments)
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