schizzi e scazzi di finanza e dintorni
18 marzo 2008
DIO PERDONA, IL GOVERNO NO
Stearns was the only major securities dealer that refused to
participate in the bailout of Long-Term Capital Management, the
epicenter of the last credit crunch in 1998.
This caused a lot of bad
blood, as Bear didn't shoulder any of the capital costs associated with
the bailout, but profited from the improved conditions in the
marketplace. Wall Street viewed the firm as a "free rider."
Had the Fed
acted earlier, say last week, to accept collateral from securities
dealers, Bear Stearns would not have collapsed, JPMorgan wouldn't have
been able to buy the entire firm for $2, and investors in Bear wouldn't
have lost $70 billion.
The message to the market is undeniable: Do what
the government tells you to do or else you'll pay, eventually.
| inviato da houseofMaedhros
il 18/3/2008 alle 8:19 | |