JP Morgan issues rumors about paying LESS for BSC, to avoid what happened with Yahoo.

Quote from newguy05:

You idiot, this is not a bid/reject tug o war like yhoo and msft.

The bsc/jpm $2 deal is pretty much done, just a matter of letting the ink dry and close it out, which i am sure the feds will help to speed it up.

I am sure there will be many law suits etc in the coming weeks, still wont change the fact - $2 a share
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what about a higher bid? cant china or some arab country come and say $5 a share? i think at $2 you buy BSC
 
Quote from peilthetraveler:

Why DONT they just go bankrupt? Assets - Liabilities = Owners equity. Isnt that what they teach in accounting 101? Sell everything off and pay shareholders 80$ per share!
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the delirium has finally set in for longs, such as peil. what's next, call your broker and demand they bust the trade? :D

face it, you lost 95% of your investment, accept it and move on.
 
Quote from newguy05:

How do you know asset - liabilities is NOT negative? The situation must be really bad for the $2 a share. And if bsc goes bankrupt, it will set off a nuke in the financial market. Many firms have counterparty risk with bsc.
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You are correct.
It's all about the counter-party risk.
People on ET don't seem to have a clue about this.
 
Quote from peilthetraveler:

Why DONT they just go bankrupt? Assets - Liabilities = Owners equity. Isnt that what they teach in accounting 101? Sell everything off and pay shareholders 80$ per share!
More...

This is at least the 3rd time since 1900 JP Morgan has worked with Gov't to try to stave off a crash ( didn't succeed in '29 ). BSC may be worth a lot more than $2 but Gov't didn't want the market flooded with BSC assets so they approved this "deal" in a terrific hurry to avert a crash. This way BSC assets can be managed with less desperation.

In effect, the Gov't screwed BSC holders to avoid a market collapse.

FED will make available to JPM all the $ they request.
 
If BSC is actually worth $80, then JPM shares must be a buy?

This will go down in history as one of the best deals ever... or maybe BSC will take JPM down too?
 
A lot of duplication in business lines, Balance sheet asset values are questionable. Clearing business accretive, not sure what else is.
 
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.
 
So basically, maybe not such a good deal after all, might just be a case of we have to take them out because they are our biggest counterpart?
 
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