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Originally Posted by Jet Gorgon The Fed mtg is Tuesday, and it'll likely lower rates to about 2% |
You're right, i just woke up, still sleepy. Its the discount rate they lowered 0.25% and the big cut will probably have to be another emergency move before markets open on Monday morning. Bear Stearns were the victims of a run on Thursday and Friday, investors withdrew 16billion dollars in two days. Both Lehman Bros(tuesdaypm) Morgan Stanley (am wednesday) give q4 reports this week and it could get uglier than it is now.
From Bloomberg.com
"Joseph Lewis, Bear Stearns's second-largest shareholder, has spent more than
$1 billion on the firm's stock since September, paying as much as $150 a share. Lewis, a 71-year-old billionaire, wasn't planning to reduce his stake, a person close to him said March 11. He's now
entitled to $22 million of JPMorgan shares. 
To put into perspective of how cheap Bear has been sold for:
"The price JPMorgan is paying is about one quarter the value of the securities firm's headquarters building in midtown Manhattan. The 1.2 million-square-foot, 45-story structure built in 2001 is worth about $1.2 billion, based on the average $1,000 per- square-foot that comparable office space in the city is currently fetching.