{"id":2792,"date":"2008-03-17T20:22:25","date_gmt":"2008-03-18T03:22:25","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2792"},"modified":"2008-03-17T20:22:25","modified_gmt":"2008-03-18T03:22:25","slug":"stealing-bear-stearns-joe-lewis-aint-pulling-punches","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2792\/stealing-bear-stearns-joe-lewis-aint-pulling-punches\/","title":{"rendered":"Stealing Bear Stearns: Joe Lewis Ain’t Pulling Punches"},"content":{"rendered":"

Joe Lewis taught us all what the word “derisory<\/a>” 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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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<\/a> 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?<\/p>\n

I reported that this was an asset play for JP Morgan<\/a>, 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?<\/p>\n

Hunker down, folks! Hunker down for a heavyweight fight between Joe Lewis and Jamie Dimon. The currency trader versus the bean counter. Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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, […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-2792","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2824,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2824\/jp-morgan-ups-bid-for-bear-stearns\/","url_meta":{"origin":2792,"position":0},"title":"JP Morgan Ups Bid For Bear Stearns","author":"Brian Brady","date":"March 23, 2008","format":false,"excerpt":"Have we reached the bottom of the credit crisis? Not likely but we are definitely going through, what Barry Johnson calls, price discovery. From The New York Times via Yahoo News: JPMorgan Chase & Co (JPM.N) is in talks to increase its offer for Bear Stearns CosBear Stearns, (BSC.N) to\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2787,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2787\/bear-stearns-employees-wake-up-to-tenuous-employment-prospects\/","url_meta":{"origin":2792,"position":1},"title":"Bear Stearns Employees Wake Up To Tenuous Employment Prospects","author":"Brian Brady","date":"March 16, 2008","format":false,"excerpt":"Bear Stearns employees will wake up on St. Patrick's Day and wonder about their future. JP Morgan Chase bought Bear Stearns, a venerable Wall Street institution, for about 2.5% of the firm's stated book value. The sales price was just 20% of the value of the Manhattan headquarters alone. How\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1555,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1555\/subprime-lending-fallout-goes-upstream-to-take-down-two-major-hedge-funds-what-does-this-mean-to-real-estate-investors\/","url_meta":{"origin":2792,"position":2},"title":"Subprime Lending Fallout Goes Upstream to Take Down Two Major Hedge Funds: What does this Mean To Real Estate Investors?","author":"Cooksquared","date":"June 20, 2007","format":false,"excerpt":"Two major Bear Stearns Hedge Funds face foreclosure due to their significant exposure to the subprime lending market. While this does not fall under the category of real estate investor, I spent last summer working for Bear Stearns and interacting with many of their hedge funds. Based on the very\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5435,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5435\/tin-foil-hats-optional\/","url_meta":{"origin":2792,"position":3},"title":"Tin Foil Hats Optional","author":"Sean Purcell","date":"November 5, 2008","format":false,"excerpt":"In an earlier post I laid out how my distrust of conspiracy theories is being severely challenged by our government and what appears to be a naked power grab.\u00a0 I am loath to continue in this vein for fear of being labeled the nut job who writes about Area 51\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1141,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1141\/countrywide-lendingtree-bear-stearns\/","url_meta":{"origin":2792,"position":4},"title":"Countrywide, LendingTree and Bear Stearns Mortgage","author":"Doug Quance","date":"March 13, 2007","format":false,"excerpt":"The lending roller coaster is just starting to roll Most real estate professionals have to deal with an occasional unexpected consequence involving lenders... but not a string of them like this revelation. A client of mine decided to be a generous friend. He's not a wealthy man in the strictest\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4576\/what-happened-fannie-mae-and-freddie-mac-exploded-and-many-bystanders-were-injured-in-the-blast-some-fatally\/","url_meta":{"origin":2792,"position":5},"title":"What happened? “Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally”","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Things fall apart: Kevin Hassett at Bloomberg.com is getting death threats over this news analysis:The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story. 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