Monday, June 09, 2008

JP MORGAN CHASE JPM is on fire today like an iceberg and melting

JP Morgan got some fever today, virus must be very contagious and spreading fast. Who would like to hold next hot potato? I will throw some ideas here: Merrill Lynch MER, Freddie Mac FRE, Bank of America BAC, Citigroup C and even best of the breed: Goldman Sachs GS - its immunity is really suspicious.
Do you know how the price for Bear was determined? How much Paulson will agree to throw to shareholders after initial screw up at 2.0 dollars. They have agreed at 10.0, but do you think anybody really knows how much does it worth? It is pure liability for JP Morgan with its toxic trading book and liabilities from SIVs to lawsuits for its hedge funds.
The value of Investment Bank its people and Brand what do you have in Bear case - Brand? Or bunch of guys created that mess.

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