Financial Firms Face a “New World Order”
March 17th, 2008HAHA. No, really. Accuse Reuters for being a tinfoil rag. I just work here.
Via: Reuters:
Financial firms face a “new world order” after a weekend fire sale of Bear Stearns and the Federal Reserve’s first emergency weekend meeting since 1979, research firm CreditSights said in a report on Monday.
More industry consolidation and acquisitions may follow after JPMorgan Chase & Co on Sunday said it was buying Bear Stearns for $236 million, or deep discount of $2 a share, a fraction of the $30 price on Friday and record share price of about $172 last year.
“Last evening the Bear Stearns situation reached a crescendo, as JPMorgan agreed to acquire the wounded broker for a token amount of $2 per share,” CreditSights said. “The reality check is that there are many challenged major banks, brokers, thrifts, finance/mortgage companies, and only a handful of bonafide strong U.S. banks.
CreditSights said it lowered its broker, bank and finance company recommendations to “market weight” due to the credit crisis and stresses in the market.
