BSC To The Woodshed!

By Jorge | Published: Friday, March 14, 2008

Rumors have been swirling about Bear Stearns (BSC) having a liquidity crisis.  Earlier this week, BSC came out and said everything was alright.  This morning, JPMorgan (JPM) and the Fed Bank of NY came out stating they’re providing BSC with liquidity.  BSC came out soon after stating the past 24 hours liquidity within the firm has deteriorated rapidly.  BSC currently trading at 37.95, down 33% on the day.  Options activity is showing BSC actually going belly up.  Stay tuned.

Update:   Michigan sentiment is out a bit lower than expected at 70.5 vs. 70.8 expected.  It doesn’t matter since the Dow is down 200 points.  Let’s hope capitulation finally kicks in.

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  • Not enough volume for capitulation. CNBC is reporting that BSC will not exist as a stand alone company. JPM buyout, other buyout, or unwind.
  • Options Strategery, CNBC may have reported that, but how are you so sure that it will not exist as a stand alone company. Pehaps those could be rumors too?
  • OS / OTF,

    Toward the end of the day, CNBC did report that BSC's being shopped around. Now I could be mistaken, but BSC did hold a conference call Friday and in the call while they didn't specify being sold, they did mention that other alternatives were in the works.

    http://online.wsj.com/article/SB120553736208238...

    Wall Street Journal's even predicting a potential sale is either in the works or necessary for BSC's survival (I know, WSJ is owned by Fox). You're right though OS. Not enough volume. But man if you were in those cheap puts even during the first 5 minutes of trading you made an absolute killing.
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