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LEH trading down 31% in premarket on 300k shares so far.

Sucks for LEH. Once Illiquidity rumours like these are out on the backdrop of BSC they can become a self-fulfilling prophecy. LEH might pretty well be toast as well.

They don't get blown away by being highly diversified across options in 100s of stocks and never being overweight a single directional risk. Delta hedging becomes impossible with a 90% overnight move.

Here's the open interest for the lower strikes 25.00 27,637 30.00 36,930 35.00 14,566 40.00 23,029 45.00 10,848 BSC closed at $30.00 on Friday with the $30 strike puts trading at a $6 premium. So yes, decent amounts of money changed hands.

To be honest, I can't believe what Greenspan is saying. Any "normal" human being would feel ashamed for doing a complete 180 degree turn and running their mouth on the mess they created in the first place. The guy must be nuts, maybe dementia is getting the best of him.

Kind of ironic this comes from the same guy who praised the packaging/slicing/dicing of diversified mortgage debt as a big innovation in risk management :p

JPM bid $2 a share for BSC, doesn't necessarily mean they're worth only that. I have a feeling JPM got away with a huge steal on this as the real estate alone is more than what they paid, we will only know in hindsight though.

So is JPM getting a steal here? I guess they do as they get a good margin of error for most of the risk they take on their balance sheets and they basically get the real estate for free.

GS's report - whatever it is - is likely going to be the best case scenario and ceiling for all the other IBs reporting.

#1 principle of a top trader "if in trouble, double"

Yes, I have observed the same thing. Very strange. I hope they get this figured out very soon.

Excuse me... 'only' 1.5bln??????????????????????????? For a 4.5 years old fund with ZERO investment track record? You have got to be kidding me. How much should he have raised? $10bln? $25bln?

His fund manages $1.5bln. He started it in 2003 with 2 partners I believe after leaving Morgan Stanley. If I recall correctly (could be wrong, maybe somebody can correct me) I think the fund averaged a return net of fees in the mid teens from inception until the end of 2007 which would beat all...

Oh the panic!

As far as I know the treasury department is in charge of setting the Dollar policy, not the Fed.

Ok guys, I can't take it anymore. I wrote this to my congressman: "Dear Sir, I can't take wheat, crude and corn soaring to new highs while all that Bernanke seems to care about is bailing out the fat cats on Wall Street. Who cares about Bear Stears going belly up? I urge you to force...

I would have said a solid private Swiss bank, cash in CHF and 10% in physical Gold. But who dares to say how "solid" the UBSs of today are?

If you checked the average expenses of any one person over the course of 10 years you'd see there's a lot more to it than purchasing a carton of milk or a gallon of gasoline. There are many more places people spend money at than supermarkets and gas stations. Airline tickets, clothing...

Because people understand that the CPI is not an aggregate index of crude, corn and wheat futures but a diversified price index of goods and services.

So inflation protected treasuries trading with negative yields are accurately reflecting economic fundamentals? I don't follow.