Recent Blog Posts
-
The $4.5 Billion Dollar Bank Run
Nov 07 201111:20 am EDT -
The Times' Rorshach Geithner Story
Apr 27 20099:26 am EDT -
Sinking Animal Spirits
Apr 27 20098:45 am EDT -
Counter-cyclical Urban Policy
Apr 26 200910:00 am EDT -
Be Your Own Counterfeiter
Apr 26 20099:36 am EDT -
Being Tim Geithner
Apr 25 200912:37 pm EDT -
Notes From a Press Conference Naif
Apr 25 20099:41 am EDT -
What Good is the News?
Apr 25 20098:32 am EDT -
Stressful Enough
Apr 24 20092:29 pm EDT -
Not Regretting the Pound
Apr 24 20091:09 pm EDT
Links
- Felix Salmon
- DealBreaker
- Ryan Avent: The Bellows
- The Epicurean Dealmaker
- Chris Anderson
- Ultimi Barbarorum
- MarketBeat
- Michelle Leder
- John Quiggin
- The Panelist
- Andrew Leonard
- Streetsblog
- Brad Setser
- Michael Mandel
- Financial Crookery
- Kash Mansori
- Dean Baker
- Calculated Risk
- Free Exchange
- Curbed
- Lance Knobel
- Econospeak
- Carbon Tax Center
- Overcoming Bias
- Mark Thoma
- Naked Capitalism
- Alphaville
- Barry Ritholtz
- Alexander Campbell
- The Bayesian Heresy
- Brad DeLong
- DealBook
- Greg Mankiw
- Deal Journal
- FP Passport
- Carl Bialik
- Marginal Revolution
- A Fistful of Euros
- Dan Gross
Bear Got a Sugar Daddy?
Yves Smith of Naked Capitalism submits:
Bloomberg tells us that Bear Stearns' shares rose 13% on an analyst's comments that the firm "may" have secured an equity investment.
Now events may prove me wrong, but Bear has been out looking for a partner for some time, and rumor was that the logical chumps, the Chinese, had wised up after the Blackstone IPO investment. And the wording of this supposed tidbit is awfully conditional.
No sensible investor would make a straight equity contribution (you'd want a preferred return, a board seat or two, vetos on certain matters), and Bear would therefore restrict his right to resell. Having an illiquid minority investment in any firm, much the less a securities firm, is not a pretty place to be.
Things need to get considerably worse for this sort of paper to be priced cheaply enough to be worth the risk. But those blood-in-the-street moments present opportunities galore for the brave, and I'm not sure where Bear would be on the list at that juncture.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
500 Startups Hits New York