{"id":2824,"date":"2008-03-23T23:36:27","date_gmt":"2008-03-24T06:36:27","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2824"},"modified":"2008-03-23T23:36:27","modified_gmt":"2008-03-24T06:36:27","slug":"jp-morgan-ups-bid-for-bear-stearns","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2824\/jp-morgan-ups-bid-for-bear-stearns\/","title":{"rendered":"JP Morgan Ups Bid For Bear Stearns"},"content":{"rendered":"

Have we reached the bottom of the credit crisis? Not likely but we are definitely going through, what Barry Johnson calls, price discover<\/a>y.<\/p>\n

From The New York Times via Yahoo News<\/a>:<\/p>\n

JPMorgan Chase & Co (JPM.N) is in talks to increase its offer for Bear Stearns CosBear Stearns, <\/em> (BSC.N) to $10 per share in an effort to pacify angry shareholders of Bear Stearns, the New York Times reported in its online edition.<\/em><\/p>\n

“The Fed, which must approve any new deal, was balking at the new offer price on Sunday night after several days of frantic, secret negotiations,” the newspaper reported, citing people involved in the negotiations.<\/em><\/p><\/blockquote>\n

I said, earlier this week, that this deal may very well QUANTIFY the bottom<\/a>:<\/p>\n

Here\u2019s the part we\u2019re all forgetting. 30% of the Bear Stearns stock is owned by the employees and Joe Lewis own another 10%. Both these \u201cstakeholders\u201d 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\u2019 building is eight bucks a share. Manhattan real estate was supposed to be holding up pretty well in this real estate decline. I \u201cget\u201d lowball offers but 20 cents on the dollar for the building and firm that comes with it?<\/em><\/p>\n

I reported that this was an asset play for JP Morgan<\/a>, last night; they certainly assume some risk with Bear\u2019s 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?<\/em><\/p>\n

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\u2019re fighting about WHERE the bottom is , today, the bottom might be just around the corner<\/strong>.<\/em><\/p><\/blockquote>\n

In my annual market report<\/a>, I said:<\/p>\n

Today, we can feel the bottom amidst the Read more<\/a><\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

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 $10 per share in an […]<\/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":[8,26,5],"tags":[],"class_list":{"0":"post-2824","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2792,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2792\/stealing-bear-stearns-joe-lewis-aint-pulling-punches\/","url_meta":{"origin":2824,"position":0},"title":"Stealing Bear Stearns: Joe Lewis Ain’t Pulling Punches","author":"Brian Brady","date":"March 17, 2008","format":false,"excerpt":"Joe Lewis taught us all what the word \"derisory\" meant today when he described the Bear Stearns sale to JP Morgan Chase. 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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":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":2824,"position":3},"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. 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