Bear Stearns

Tweety · #1 08-24-2007, 10:41 PM

Just how much trouble is this company in? I have a friend who works there and she is a bit worried about their exposure to this mortgage trade. She's worried that their problems extend well beyond those two funds that blew up, and she says she can't rule out the company going under.

Any thoughts on this? I work for one of their competitors, but obviously Bear Stearns going under would be bad for much of the street.

kiddcheckers · #2 08-25-2007, 05:21 AM

They're loans are apparently trading at about 80c on the dollar in the secondary market and I've heard funk about funding problems so yeah... they could be going the way of greenpoint in the near future.

Tis a dark time to be in the biz.

Phone Booth · #3 08-25-2007, 12:55 PM

[ QUOTE ]
Just how much trouble is this company in? I have a friend who works there and she is a bit worried about their exposure to this mortgage trade. She's worried that their problems extend well beyond those two funds that blew up, and she says she can't rule out the company going under.

Any thoughts on this? I work for one of their competitors, but obviously Bear Stearns going under would be bad for much of the street.

[/ QUOTE ]

What area does she work in? I know a bunch of people who work there and most of them don't seem that worried. There's no real connection between their actual book (which probably looks more like those of their competitors except, they are probably better hedged) and the funds that blew up.

DesertCat · #4 08-25-2007, 03:27 PM

Wouldnt BS going under be great for the street? Lots of assets sold in BK firesale, one less competitor, etc.

Phone Booth · #5 08-26-2007, 05:26 PM

[ QUOTE ]
Wouldnt BS going under be great for the street? Lots of assets sold in BK firesale, one less competitor, etc.

[/ QUOTE ]

Neither the circumstances that would lead to BS going under, nor the likely financial turmoil would be great for the street, per se. Someone would benefit, of course, but it's not exactly clear who that would be. One certain loser would be the average wall street professional - one fewer place to work and a lot of people looking for jobs.