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’US seeks delay on Bear case
US federal prosecutors asked securities regulators to delay a civil case against two former Bear Stearns hedge fund managers while they hold grand jury hearings in building a criminal case against the pair,
Naked short-selling laid bare?
The SEC’s ban on naked short-selling of 19 financials, including Fannie and Freddie, ended yesterday.
Bloomberg points out that the market value of the 19 companies has jumped 26 percent since July 15 – when the ban was announced in the interest of preventing “unlawful manipulation”
Schwartz: The last Bear leaves JPMorgan
Alan Schwartz, who administered the last rites to Bear Stearns as the stricken firm’s final chief executive, is to leave JPMorgan Chase five months after the bank acquired Bear in a government-aided rescue deal.
Fed values Bear assets at $29bn
The Federal Reserve Bank of New York on Thursday confirmed the estimated fair value of assets that were formerly held by Bear Stearns at about $29bn, the amount at which it was sold to JPMorgan in March.
Coxless Bear
The WSJ is leading this morning with a story on SEC chairman Chris Cox.
By Cox’s own admission, markets aren’t his game. His area of expertise is corporate law. And by any yardstick, when compared against the pantheon of politicians-cum-regulators of SEC and Wall Street fame/infamy,
Former Bear hedge fund duo charged
Two former Bear Stearns hedge fund managers were on Thursday indicted on federal charges that they intentionally misled investors about the condition of the investment vehicles that collapsed last year.
Bear raid – in pictures
First they were arrested. Now they’ve been charged.
Pictures via Bloomberg:
And the indictment itself:
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK UNITED STATES OF AMERICA
- against Tannin,
Bear raid
Ralph Cioffi and Matthew Tannin – the two former Bear Stearns hedge fund managers – have been arrested by agents from the FBI. Cioffi was the funds’ senior portfolio manager, while Tannin acted as his COO.
Snap News
The latest on Thursday,
- HBOS announces details of £4bn rights issue – circular
- HBOS releases H1 trading statement: £1bn writedown, but sees margins steady over 2008 in spite of projected 9% decline in UK house values – statement
- Land of Leather releases details of £15m rights issue,
Hedge fund chief warns of worse to come
John Paulson, president of Paulson & Co, the hedge fund manager which made some of the biggest profits from the global credit crisis, said mortgage-related losses for troubled financials could reach $1,300bn,
Even Bear Stearns is having a better week than Lehman Brothers
(H/T Daily Options Report)
Lehman Brothers just can’t get a break – even on the lacrosse pitch: Bear Stearns’ lacrosse team whipped their (former) rivals at Lehman 11-4 on Tuesday night, according to Bloomberg.
Short View: Credit crisis returns
On Thursday, the market’s worst fears were realised, MBIA and Ambac Financial, the two biggest monoline bond insurers, lost their triple A credit rating from Standard & Poor’s.
Had this happened at any point in the first three months of this year,
Temasek rebuffed Bear Stearns plea
Bear Stearns sought rescue financing from Temasek of Singapore in the days before its sale to JPMorgan Chase but was rebuffed, underscoring the growing reluctance of sovereign wealth funds to make high-profile investments.
Bear epitaphs
After the jump, The Annotated Bear, by Geoffrey Raymond. The painting was left outside Bear headquarters yesterday for employees, shareholders and the public of NYC to sign.
“Opening bid: One Dimon”
Bear passes into Wall Street history
Jimmy Cayne apologised for the first time to Bear Stearns shareholders and employees on Thursday as the investment bank he helped build into a scrappy powerhouse formally disappeared into Wall Street history as the biggest victim of the credit crisis.
Bear no more
It’s a sad day but we’ll get through it, and we may be better off for it… The company that is taking us over, or is merging with us, is a first-class company… That which doesn’t kill you makes you stronger.
Top banks launch derivatives clearer
Efforts to tackle the risk surrounding privately negotiated credit derivatives will take a step forward Thursday when 11 of the world’s biggest investment banks announce the creation of the first central clearer for the opaque contracts by September.
Last chance for a Bear bear
You are out of a job. And while Jamie is trying, the employment outlook is not good. But before you exit the building, you can still load up on branded goods to remind you of happier times – at a price.
My dear Jamie,
Thanks for your note.
As it happens, we do currently have one position to fill and further openings may well become available shortly. But interest has already been keen and we’ve decided to rule off on applications at the close of play on Monday.
JPMorgan seeks jobs for Bear staff
JPMorgan Chase has launched an unprecedented campaign to find jobs for more than 5,000 people who are being sacked after its takeover of Bear Stearns. Jamie Dimon, JPMorgan’s chairman and chief executive,
JPMorgan to spin off Bear funds
JPMorgan Chase expects to liquidate or spin off much of the asset management arm of Bear Stearns after it takes over Bear next month, reports Reuters. Bear Stearns Asset Management has about 400 employees and managed $39bn in investments at the end of February.
JPMorgan faces $9bn charge for Bear clean-up
JPMorgan Chase is to take a charge of about $9bn – half as much again as its estimate – to clean up Bear Stearns’ balance sheet and pay for redundancies and litigation arising from its cut-price takeover of the stricken investment bank.
Numis woos Bear Stearns staff
Numis, the small-cap UK stock broker, has approached a number of staff at Bear Stearns Europe dealing in large-cap shares. Numis is also rumoured to be targeting Bear Stearns’ equity derivatives staff – although a spokesman for the interdealer broker denied this.
US trader charged for false rumours
A Wall Street short-seller on Thursday was charged by the SEC with spreading false rumours in a case that suggests regulators are concerned about the increase in such rumour-mongering. The case, which hinges on rumours about a Blackstone takeover deal,
JPMorgan’s Bear trap
Reuters DealZone got through to someone at JPMorgan:
…our sources at JPMorgan said the bond sale was routine, one of more than a hundred such deals over the past decade. Moreover SEC rules prevent banks from disclosing material information in the days ahead of an earnings announcement.
(More) job-loss fears hit investment banking
Alongside Citigroup’s latest move to slash more jobs, Merrill Lynch said Thursday it would cut 4,000 jobs after suffering a $2bn Q1 loss – bringing to nearly 40,000 the number of positions lost at financial companies since the onset of the credit crunch.
Job-loss fears hit investment banking
Alongside Citigroup’s decision to slash jobs, Merrill Lynch said Thursday it would cut 4,000 jobs after suffering a $2bn Q1 loss, bringing to nearly 40,000 the number of positions lost at financial companies since the onset of the credit crunch.
Bear warned on bond probe, net falls 79%
US securities regulators warned Bear Stearns, whose agreement last month to sell itself to JPMorgan Chase averted its collapse, that they may take enforcement action against the company as part of a municipal-bond probe.
Pink Picks
Comment and analysis in the FT on Wednesday,
Comment: Martin Wolf — Don’t blame Greenspan
When a wave of destruction hits, everybody looks for somebody to blame. Alan Greenspan, former Fed chairman,