playing hot potato

[luv2read]

The DJ Stoxx European bank index was down 1.6 percent with UBS down 3.4 percent. The bank made a huge loan to Blackrock (BLK.N: Quote, Profile, Research) so that the U.S. asset manager could buy $15 billion of distressed assets from the Swiss bank, easing the strain on UBS's balance sheet, but not freeing it from the risk.

Ok how does this game go? My monopoly deeds are worth zero, but have a "face value" of $15B. So I'm going to lend you $15B of my monopoly money that I raised by selling stock after I took a huge writedown so you can buy my worthless deeds. You can pay me interest on the $15B monopoly money, which helps my balance sheet and looks good to other investors and stockholders.

Either Blackstone or Blackrock (I can't recall which) is the firm managing the JPM/BSC bailout for the FED. That's OUR taxpayer money, folks. Here they go again....

 

[luv2read]

It's Blackrock, the same firm that's managing the BSC mess. Your tax dollars at work....

BlackRock Is Fix-It Firm to Manage Risky Assets of Others in Distress
By MICHAEL J. DE LA MERCED
May 8, 2008
Under the aegis of the Fed, BlackRock is managing $30 billion of hard-to-sell assets from Bear Stearns. If it fumbles, the Fed, and by extension taxpayers, could lose billions.

Picking Up the Pieces
By MICHAEL J. DE LA MERCED
May 8, 2008
Money management company BlackRock, under aegis of Federal Reserve System, is managing $30 billion of hard=to-sell assets from Bear Stearns, part of central bank's unprecedented deal with JPMorgan Chase under which JPMorgan took control of investment bank; BlackRock chairman-chief executive Laurence D Fink is reluctant to talk about assignment; if BlackRock fumbles, Fed, and by extension taxpayers, could lose billions; in Washington, some question arrangement, saying it puts taxpayers' money at...

 

[luv2read]

JPM posts loss....I want my BSC stock! (or a refund)

J.P. Morgan discloses $1.5 billion write-off
By Steve Goldstein
Last update: 3:55 a.m. EDT Aug. 12, 2008
LONDON (MarketWatch) -- J.P. Morgan Chase, in a filing to the Securities and Exchange Commission late on Monday, said it's had to take a $1.5 billion write-off on mortgage-backed securities and loans. "Trading conditions have substantially deteriorated versus the second quarter," the lender said. The Financial Times, which first reported on the write-off, cited unnamed sources as saying Merrill Lynch's decision to sell mortgage-backed securities at 22 cents on the dollar to Lone Star prompted a fall in the prices of similar securities

See the earlier posts in this thread. Looks like they couldn't sell those toxic assets after all. Don't forget about the $30B we, the taxpayers, gave JPM to buy BSC for $10 a share. Your tax dollars at work...

Oh....and the bank in the first post...UBS...that's the other bank in the news today...both at the same time..again! And both being managed by Black Rock....:suspicious: good job there, BR.