Re: Bear Stearns bank...kaput. taken over by rival bank JPMorgan

The banks worth investing are those with substantial banking and wealth 
management investment in Asia.

Best stay away from Bear Sterns or Merrill Lynch or even Morgan Stanley.

Sub prime is a lesser problem because it can be contained.

But the high leverage nature of many fund houses as well as hedge funds 
is a bigger problem.

If these hedge funds go bust, no one will be sorry for them.


baldeagle wrote:
> Bear Stearns bank is one of the two largest global investment banks,
> securities trading and brokerage firms in the world. The other is
> JPMorgan Chase.
> 
> Last year Bear Stearn share was  traded at $159 a share...last week it
> was $70 a share, Last Friday it was only $30. It is now insolvent with
> a subprime losses of over $3.2 billions.   JPMorgan Chase is to buy
> over Bear Stearns, at $2 a share.
> 
> What happened !
> 
> Two words...Subprime and credit crunch.
> 
> Will it be the last or first of many to come ?
> 
> Looking at the amount of subprime losses suffered by leading banks in
> the USA and Europe...(see table below), more banks will have to fold
> up soon.
> 
> MAIN SUB-PRIME LOSSES SO FAR
> Citigroup: $18bn
> Merrill Lynch: $14.1bn
> UBS: $13.5bn
> Morgan Stanley $9.4bn
> HSBC: $3.4bn
> Bear Stearns: $3.2bn
> Deutsche Bank: $3.2bn
> Bank of America: $3bn
> Barclays: $2.6bn
> Royal Bank of Scotland: $2.6bn
> Freddie Mac: $2bn
> JP Morgan Chase: $3.2bn
> Credit Suisse: $1bn
> Wachovia: $1.1bn
> IKB: $2.6bn
> 
> Source: Company re****t  by BBC
> http://news.bbc.co.uk/2/hi/business/7299938.stm
> 
> Time to get rid of your bank shares before it become worthless.
>