There’s always something to howl about.

Stealing Bear Stearns: Joe Lewis Ain’t Pulling Punches

Joe Lewis taught us all what the word “derisory” meant today when he described the Bear Stearns sale to JP Morgan Chase. Lewis doubts the shareholders will approve the sale to Jamie Dimon’s financial services powerhouse.

Joe Lewis invested some 9 figures in the cash-strapped investment bank, last year. Bear Stearns cried poor on Friday, cut a deal with Jamie, over the weekend, and announced the sale Sunday night. The Fed lent JP Morgan the money to buy Bear Stearns. President Bush and Treasury Secretary Paulson endorsed the deal by 10AM PST today.

Fortune rewards the swift, no? Of course, I can’t forward lock a loan with Chase because I can’t get a wholesale lending rep to stop by my office and get me codes for their website. I’m guessing if I offered the $300,000 loan for ten grand, I might get a better response from Chase.

Here’s the part we’re all forgetting. 30% of the Bear Stearns stock is owned by the employees and Joe Lewis own another 10%. Both these “stakeholders” are a tad more than pissed at the weekend looting that happened when the power went out at Bear. Thursday, the stated book value was some $80. The value of their headquarters’ building is eight bucks a share. Manhattan real estate was supposed to be holding up pretty well in this real estate decline. I “get” lowball offers but 20 cents on the dollar for the building and firm that comes with it?

I reported that this was an asset play for JP Morgan, last night; they certainly assume some risk with Bear’s mortgage-laden portfolio. I thought the offer was scary, not derisory when I saw it. A pit formed, in my stomach, when I thought that valuations were THAT low. If Bear Stearns, a respected securities form could be devalued THAT much by mortgages, what would happen to the economy?

Hunker down, folks! Hunker down for a heavyweight fight between Joe Lewis and Jamie Dimon. The currency trader versus the bean counter. The cowboy versus the storekeeper. If we’re fighting about WHERE the bottom is , today, the bottom might be just around the corner.

PS- If you read the PS on my first Bear Stearns post, it’s clear to see my bias, in this fight.