In the Event You've Been Living Under a Rock...

<p>Bear Stearns has just had a collapse of epic proportions, placing it in the ranks of LTCM. BSC has accepted a $2/share bid from JP Morgan... yes that is right, $2 a share. The building they own is approximately worth $1 billion, placing the value actual business at a whopping -$700 ish million. Approximately half of BSC will be cut. </p>

<p>See the excerpt below:</p>

<p>"J.P. Morgan Chase agreed to buy Bear Stearns for $2 a share in a stock-swap transaction, people familiar with the matter say. J.P. Morgan will exchange 0.05473 shares of its common stock per one share of Bear Stearns stock. Both boards have approved the transaction.</p>

<p>People familiar with the discussions said all sides were pushing hard to complete an agreement before financial markets in Asia open for Monday trading. "None of these things is done until they're done," Treasury Department spokeswoman Michele Davis said Sunday afternoon. "But I think everyone's expectation is sometime in the early evening hopefully" the deal will be done.</p>

<p>One stumbling point appeared to be the amount of risk that J.P. Morgan would absorb in any type of transaction. While J.P. Morgan is eager to snap up some of Bear Stearns assets -- such as its prime brokerage business that caters to hedge funds -- Chief Executive Officer James Dimon was reluctant to pursue the deal without certain assurances that would protect his firm's exposure, said people familiar with the matter."</p>

<p>With Lehman having such similar holdings, one can only imagine what is to come in the near future. Thoughts?</p>

<p>oold news :}</p>

<p>I didn't know the building was worth 1 billion. Thats a lot of money.</p>