The subprime mortgage crisis has claimed its latest victim: Bear Stearns, one of the world's largest investment banks, has in scarcely a year gone from Fortune's "Most Admired Company" to Wall Street's "Most Likely to Single-handedly Crash the Whole Goddamned Market as Mortgage Securities Become Worthless."
Quoth the Economist:
"In a dramatic move on Friday March 14th, the Federal Reserve Bank of New York and JPMorgan Chase made emergency funding available to Bear Stearns after other market players lost confidence in the beleaguered investment bank as a trading partner. As the credit crunch has deepened and broadened, the worst fear of many on Wall Street has been the collapse or forced rescue of a big bank or broker. That moment is now upon them."
Now JP Morgan Chase has announced that, pending shareholder approval, they will purchase Bear Stearns for $236 million, or less than the rent on Bear Stearns's office space.
With such a major crisis just when it seemed we were seeing the bottom of this particular economic well, a question must be asked: Shouldn't an investment bank be named "Bull Stearns"? Isn't a company named "Bear Stearns" just asking for it?
-- Boozin' and losin'
- Oh, the monies!