350zCommtech's Account Talk

[love-to-bike]

The dollar is set to rally big time.

Yeah, this is my feeling as well. Last week I put a bunch of money into fund for a strengthening US dollar, of course it promptly dropped about a percentage but I'm thinking this will be a winner soon.

 

[350zCommTech]

Here it is.

J.P. Morgan Chase to buy Bear Stearns for $2 a share

By Anne Stanley
Last update: 7:16 p.m. EDT March 16, 2008

SAN FRANCISCO (MarketWatch) -- J.P. Morgan Chase

JPM 36.54, -1.57, -4.1%) has agreed to buy Bear Stearns [s:bsc] for $2 a share in a stock-swap deal, according to a report in the online edition of the Wall Street Journal citing people familiar with the matter. J.P. Morgan will exchange 0.05473 shares of its common stock per one share of Bear Stearns stock. Both boards have approved the transaction. The Journal reported people familiar with the discussions said all sides were pushing hard to complete an agreement before financial markets in Asia open for Monday trading. The Journal report quotes Treasury Deptartment spokeswoman Michele Davis as saying, "None of these things is done until they're done. But I think everyone's expectation is sometime in the early evening hopefully" the deal will be done.http://www.marketwatch.com/News/Sto...7811-7850-4C55-9AE9-931FD150399F}&siteid=mktw

 

[FUTURESTRADER]

Here it is.

S&P futures like it, up 10 from being down 4

 

[350zCommTech]

S&P futures like it, up 10 from being down 4

This includes a $30B bailout. That is why futures are up. They will eventually go down.

JPMorgan Chase To Acquire Bear Stearns
Sunday March 16, 7:05 pm ET

NEW YORK--(BUSINESS WIRE)--JPMorgan Chase & Co. (NYSE: JPM - News) announced it is acquiring The Bear Stearns Companies Inc. (NYSE: BSC - News). The Boards of Directors of both companies have unanimously approved the transaction.

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The transaction will be a stock-for-stock exchange. JPMorgan Chase will exchange 0.05473 shares of JPMorgan Chase common stock per one share of Bear Stearns stock. Based on the closing price of March 15, 2008, the transaction would have a value of approximately $2 per share.

Effective immediately, JPMorgan Chase is guaranteeing the trading obligations of Bear Stearns and its subsidiaries and is providing management oversight for its operations. Other than shareholder approval, the closing is not subject to any material conditions. The transaction is expected to have an expedited close by the end of the calendar second quarter 2008. The Federal Reserve, the Office of the Comptroller of the Currency (OCC) and other federal agencies have given all necessary approvals.

In addition to the financing the Federal Reserve ordinarily provides through its Discount Window, the Fed will provide special financing in connection with this transaction. The Fed has agreed to fund up to $30 billion of Bear Stearns’ less liquid assets.

“JPMorgan Chase stands behind Bear Stearns,” said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. “Bear Stearns’ clients and counterparties should feel secure that JPMorgan is guaranteeing Bear Stearns’ counterparty risk. We welcome their clients, counterparties and employees to our firm, and we are glad to be their partner.”

Dimon added, “This transaction will provide good long-term value for JPMorgan Chase shareholders. This acquisition meets our key criteria: we are taking reasonable risk, we have built in an appropriate margin for error, it strengthens our business, and we have a clear ability to execute.”

“The past week has been an incredibly difficult time for Bear Stearns. This transaction represents the best outcome for all of our constituencies based upon the current circumstances,” said Alan Schwartz, President and Chief Executive officer of Bear Stearns. “I am incredibly proud of our employees and believe they will continue to add tremendous value to the new enterprise.”

The transaction is expected to be ultimately accretive to JPMorgan Chase’s annual earnings.

“This transaction helps us fill out some of the gaps in our franchise with manageable overlap,” said Steve Black, co-CEO of JPMorgan Investment Bank. “We know the Bear Stearns leadership team well and look forward to working with them to bring our two companies together.”

“Acquiring Bear Stearns enables us to obtain an attractive set of businesses,” said Bill Winters, co-CEO of JPMorgan Investment Bank. “After conducting due diligence, we’re comfortable with the quality of Bear Stearns’ business, and are pleased to have them as part of our firm.”

“JPMorgan Chase’s management team has a strong track record of effective merger integration,” said Heidi Miller, CEO of JPMorgan Treasury & Securities Services business. “We will work closely in the coming weeks with Bear Stearns’ clients and management to execute the transaction quickly.”

JPMorgan Chase will host a conference call today, Sunday, March 16, 2008, at 8:00 p.m. (Eastern Time) to review the acquisition of Bear Stearns. Investors can call (800) 214-0745 (domestic) / (719) 457-0700 (international), with the access code 614424, or listen via live audio webcast. The live audio webcast and presentation slides will be available on http://investor.shareholder.com/jpmorgan.... under Investor Relations, Investor Presentations. A replay of the conference call will be available beginning at 11:00 p.m. (Eastern Time) on March 16, 2008, through midnight, Monday, March 31, 2008 (Eastern Time), at (888) 348-4629 (domestic) or (719) 884-8882 (international) with the access code 614424. The replay also will be available on www.jpmorganchase.com.

 

[FUTURESTRADER]

and a .25 cut on discount rate to 3.25

 

[Hardcorps]

Anyone think they will cut 1 point on Tuesday?I have a gut feeling they will.Gotta go fill out my brackets.Should be a lot of March Madness this week.

 

[tsptalk]

S&P futures like it, up 10 from being down 4

They are all over the place this evening.

 

[FUTURESTRADER]

They are all over the place this evening.

yup..Z was right. Back down 8 ..crazy ride

 

[350zCommTech]

They are all over the place this evening.

Down 10 now.

 

[tsptalk]

Anyone think they will cut 1 point on Tuesday?I have a gut feeling they will.

Fed Funds Futures = 52% chance of 1% cut. 48% for 0.75% cut

 

[350zCommTech]

Down 10 now.

Down 19.

 

[nnuut]

Check this out!!: Just in time for the BSC thing?

Sunday surprise: Fed acts on credit crisis
Central bank cuts lending rate to financial institutions to 3.25% and creates a new way for big banks to get short-term loans.

See all CNNMoney.com RSS FEEDS (close)

Last Updated: March 16, 2008: 8:09 PM EDT

WASHINGTON (AP) -- The Federal Reserve announced a series of new steps Sunday to help provide relief to a spreading credit crisis that threatens to plunge the economy into recession.
The central bank approved a cut to its lending rate to financial institutions to 3.25% from 3.50%, effective immediately, and created another lending facility for big investment banks to secure short-term loans.
http://money.cnn.com/2008/03/16/news/economy/fed_creditcrisis.ap/index.htm?postversion=2008031619

 

[Hardcorps]

Will 1270 hold for tomorrow?I made this play last Monday and got rewarded on Tuesday.Not to sure if we'll get another bounce on Tuesday again.I think with the fed cut and Lehman Bros. and Goldman Sachs reporting Tuesday could go either way.Wish they were reporting on Wednesday.

 

[Show-me]

It's coming unglued folks.

 

[hessian]

NI300 now down -2.61%

 

[350zCommTech]

Will 1270 hold for tomorrow?I made this play last Monday and got rewarded on Tuesday.Not to sure if we'll get another bounce on Tuesday again.I think with the fed cut and Lehman Bros. and Goldman Sachs reporting Tuesday could go either way.Wish they were reporting on Wednesday.

It's coming unglued folks.

Futures are already 2 points below 1270.

The Yen is in nuclear territory. This is getting scary. The $2/share deal is going to drag down EVERYONE in the financials tomorrow.

 

[Show-me]

Someone get me some popcorn this will be wild to watch.

Didn't the CEO of BSC just come out and say the book was still mid $80 range and now it is $2 a share.

Stay away from the financials, we don't know who is next.

With the volatility I will do nothing with my TSP until this all settles. Intra day swings could be huge this week.

 

[DrFaustus]

Someone get me some popcorn this will be wild to watch.

Didn't the CEO of BSC just come out and say the book was still mid $80 range and now it is $2 a share.

Stay away from the financials, we don't know who is next.

With the volatility I will do nothing with my TSP until this all settles. Intra day swings could be huge this week.

What do you think ... stay in F or go to G?

 

[Show-me]

I'm already in G and like the view from there until this washes out a bit. The Fed has proven that it will do anything to save the financials and we do not know who is the next to fall.

There will be a ripple around the world and sentiment should take a hit. Even if they save the day it will be in the back of every traders mind. Joe Sixpack will take a few days to "get it".

 

[the decider]

the rumor mill has it that a swiss financial co is about to go the same way as bear sterns this week