Comments on: Why the Bear Stearns Deal Was a Shareholder Bailout http://www.freedomtalks.org/2008/04/03/why-the-bear-stearns-deal-was-a-shareholder-bailout/ The FreedomWorks blog dedicated to lower taxes and more freedom. Tue, 02 Dec 2008 03:08:44 +0000 http://wordpress.org/?v=2.6.3 By: Chris Kinnan http://www.freedomtalks.org/2008/04/03/why-the-bear-stearns-deal-was-a-shareholder-bailout/#comment-79568 Chris Kinnan Fri, 04 Apr 2008 11:24:21 +0000 http://www.freedomtalks.org/2008/04/03/why-the-bear-stearns-deal-was-a-shareholder-bailout/#comment-79568 C.S., Bear Stearns shareholders' had no equity the day the deal was consummated. It was JP Morgan (with the Fed vehicle) or bankruptcy. Taxpayers are absolutely at risk here...it is just a question of when the Fed unwinds the portfolio. The Fed should not have a lending window for any investment banks. The Fed should not have intervened in this situation either. C.S., Bear Stearns shareholders’ had no equity the day the deal was consummated. It was JP Morgan (with the Fed vehicle) or bankruptcy. Taxpayers are absolutely at risk here…it is just a question of when the Fed unwinds the portfolio.

The Fed should not have a lending window for any investment banks. The Fed should not have intervened in this situation either.

]]> By: C.S. http://www.freedomtalks.org/2008/04/03/why-the-bear-stearns-deal-was-a-shareholder-bailout/#comment-79554 C.S. Fri, 04 Apr 2008 05:34:03 +0000 http://www.freedomtalks.org/2008/04/03/why-the-bear-stearns-deal-was-a-shareholder-bailout/#comment-79554 Wrong. No taxpayer expense has been incurred. The underlying loans in the collateral the Fed assumed are performing, and current. And, JPM gave an additional 1 billion haircut. And, the Fed had considered opening the window as early as last summer - in which case Bear would not have had a problem. This was a hijacking, and a transfer of wealth from Bear shareholders to JPM. Wrong. No taxpayer expense has been incurred. The underlying loans in the collateral the Fed assumed are performing, and current. And, JPM gave an additional 1 billion haircut. And, the Fed had considered opening the window as early as last summer - in which case Bear would not have had a problem. This was a hijacking, and a transfer of wealth from Bear shareholders to JPM.

]]> By: Trey http://www.freedomtalks.org/2008/04/03/why-the-bear-stearns-deal-was-a-shareholder-bailout/#comment-79548 Trey Fri, 04 Apr 2008 02:46:56 +0000 http://www.freedomtalks.org/2008/04/03/why-the-bear-stearns-deal-was-a-shareholder-bailout/#comment-79548 The Heritage Foundation had a great paper on the Bear Stearns Deal: http://www.heritage.org/Research/Economy/wm1857.cfm The Heritage Foundation had a great paper on the Bear Stearns Deal: http://www.heritage.org/Research/Economy/wm1857.cfm

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