From CNN money: A line up of the poor Bear Stearns insiders and their losses in the buy out. Smiley pictures accompanied by brief descriptions of their time at the firm and mind boggling loss figures. But they aren't glum. Why? Because instead of filing for bankruptcy, the federal reserve gave JP Morgan $30 billion in a non recourse (i.e. don't worry about ever paying that back) loan to buy the BS shares for pennies on the dollar or rather 2 bucks (which they amended today to 10 bucks) for each BS share suckers purchased for over 100 bucks. And BS shareholders have no say so or vote. Smells like an Enron pig sty, only this time tax payers are bailing out the big guys. Is this called Asocialism? Public money flows to private company BS. Private company BS passes public money to private BS employees. Private company BS has no money. Public money flows in to bail out private company BS in distress and private company JP assumes ownership.
Wise man, Christopher Cox (former Rep. CA., R. and present SEC Chairman) claims Bear Stearns' losses are due to lack of confidence, but not of lack of capital. No kidding? It certainly takes billions to lose billions.