Bear Stearns prepared to file for bankruptcy

You all read about JP Morgan buying Bear Sterns for USD 270 Million, right? That is less then a 10th of its last week value.

 

The funny thing is that I was speaking to a friend of mine who works at a well respected company handling financial news and he mentioned they got nothing as buy recommendations for Bear Sterns on Friday to hand out to banks for their Private Banking Clients. Speak after me: “Never trust an analyst”

And the most shocking of all if I may cite the New York Times:

Even as those talks took place, Bear Stearns simultaneously prepared to file for bankruptcy protection in the event a deal could not be struck, underscoring the severity of its troubles.

My comment: I am speechless – so n0comment 😉

update:see here the big loosers of this current event: Bloomberg article

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