Did The Shorts Bring Down Bear Stearns?
July 7th, 2008 by Jon Taplin
Jamie Dimon, CEO of J.P. Morgan wants to know who made all the money shorting Bear Stearns.
“This is even worse than insider trading. This is deliberate and malicious destruction of value and people’s lives,” Dimon said. “They shouldn’t go to jail for a short period of time. If I was the SEC, I’d find out who made the money and I’d investigate like they do when they come after us all the time, emails, phone records, you name it, and I’d find out.”
If they did not have the benefit of inside information, shouldn’t those who were correct about Bear Stearns troubles be allowed to make money?
It was very, very clear there was a run on Bear.
If they did not have the benefit of inside information, shouldn’t those who were correct about Bear Stearns troubles be allowed to make money?
It was very, very clear there was a run on Bear.
From the article; “I think if someone knowingly starts a rumor or passes on a rumor, they should go to jail”.
I suspect he doesn’t really. I’m quite confident he never thought this when rumours and proffered opinions strengthened demand for stock he wanted sold.
I think his complaint can be accurately parsed as meaning he wants people who cost him money to go to jail.
From the article; “I think if someone knowingly starts a rumor or passes on a rumor, they should go to jail”.
I suspect he doesn’t really. I’m quite confident he never thought this when rumours and proffered opinions strengthened demand for stock he wanted sold.
I think his complaint can be accurately parsed as meaning he wants people who cost him money to go to jail.
Considering J.P. Morgan was one of the most ruthless robber barons ever, that is rich irony.
Considering J.P. Morgan was one of the most ruthless robber barons ever, that is rich irony.
Shocked, he tells us, shocked that shenanigans may have happened in the world of finance!
Shocked, he tells us, shocked that shenanigans may have happened in the world of finance!
It was not the shorts that brought Bear Stearns down.
If anything it was the other financial institutions, like JP Morgan, who refused to do business with Bear, fearing they’d end up being the “bag-holder.”
It was not the shorts that brought Bear Stearns down.
If anything it was the other financial institutions, like JP Morgan, who refused to do business with Bear, fearing they’d end up being the “bag-holder.”
Shorts? Bear Stearns doesn’t have a dress code?
Shorts? Bear Stearns doesn’t have a dress code?
I thought all’s fair in love and money? Hard to complain that someone took advantage of a system designed to steal as much money as possible without getting caught.
I thought all’s fair in love and money? Hard to complain that someone took advantage of a system designed to steal as much money as possible without getting caught.
I suspect that one of Mr. Dimon’s problems is that there are so many suspects (like, every other bank on Wall Street.)
When LTCM crashed in 2000, and the Fed organized a $3.625 billion bailout, they were able to raise the following:
$300 million
* Bankers Trust
* Barclays
* Chase
* Credit Suisse First Boston
* Deutsche Bank
* Goldman Sachs
* Merrill Lynch
* J.P.Morgan
* Morgan Stanley
* Salomon Smith Barney
* UBS
$125 million
* Société Générale
$100 million
* Lehman Brothers
* Paribas
$0
* Bear Stearns
That may have been the beginning of the end, though I’m in no position to say for sure.
I suspect that one of Mr. Dimon’s problems is that there are so many suspects (like, every other bank on Wall Street.)
When LTCM crashed in 2000, and the Fed organized a $3.625 billion bailout, they were able to raise the following:
$300 million
* Bankers Trust
* Barclays
* Chase
* Credit Suisse First Boston
* Deutsche Bank
* Goldman Sachs
* Merrill Lynch
* J.P.Morgan
* Morgan Stanley
* Salomon Smith Barney
* UBS
$125 million
* Société Générale
$100 million
* Lehman Brothers
* Paribas
$0
* Bear Stearns
That may have been the beginning of the end, though I’m in no position to say for sure.
Alex- You actually think they play “payback” on Wall Street too??
I’M shocked.
Alex- You actually think they play “payback” on Wall Street too??
I’M shocked.
Incorrect.
Shortsellers Maliciously MADE false rumors to manipulate prices and reap HUGE profits. Remember the HUGE destruction in investment (retirement!) value for Bear Stearns employees?
That doesn’t disappear. It moves to criminal short sellers. (I dont mean non-criminal retail short sellers..organized criminal short sellers that illegally and knowingly use their influence to cause panic and create self-fulfilling prophencies).
SEC is useless. They dont want to help wall street firms anymore than they absolutely HAVE to.
It’s believed that the biggest illegal profiter is Citadel which invested nearly a quarter billion is shorting Bear Stearns. That amount of money isnt risked in smart speculation…only in the unfair certainty afforded from criminal acts.
Incorrect.
Shortsellers Maliciously MADE false rumors to manipulate prices and reap HUGE profits. Remember the HUGE destruction in investment (retirement!) value for Bear Stearns employees?
That doesn’t disappear. It moves to criminal short sellers. (I dont mean non-criminal retail short sellers..organized criminal short sellers that illegally and knowingly use their influence to cause panic and create self-fulfilling prophencies).
SEC is useless. They dont want to help wall street firms anymore than they absolutely HAVE to.
It’s believed that the biggest illegal profiter is Citadel which invested nearly a quarter billion is shorting Bear Stearns. That amount of money isnt risked in smart speculation…only in the unfair certainty afforded from criminal acts.