Sunday, March 16, 2008
Profit Sharing -- Not even at 1992 prices
by Ken Houghton
This time, for once, it appears the Fed did its job: tried to save the market, not the malfeasant firm.
But $2 a share is brutal. At that level, even Jamie Dimon and the crackManny Hanny Chemical Chase JPMChase JPMChaseBankOne takeover team might be able to make a profit on this.
It's always been especially true at BSC that the assets walk out the door at the end of the day. The question now is how many of them will bother to walk in the door on Monday.
The counterpoint, somewhat, is offered by Steven Randy Waldmann, citing the always worth reading jck of Alea, while Mish suggests that derivatives may be a major issue, which is possible but unlikely, save in the balance between long- and short-term assets.
But after Carlyle got squeezed, and now BSC has fallen, it seems fair to ask exactly what the purpose of the TSLF is.
Unless, of course, you assume that market participants are using the three weeks (now 11 days) before it starts to kill of some competition. And no one in the financial services industry would do that, would they?
Iirc, and I probably don't, the first time I got BSC stock options was during my first go-round there. They were around $50/share, which was a minor premium when issued and a discount by the next year.
This time, for once, it appears the Fed did its job: tried to save the market, not the malfeasant firm.
But $2 a share is brutal. At that level, even Jamie Dimon and the crack
It's always been especially true at BSC that the assets walk out the door at the end of the day. The question now is how many of them will bother to walk in the door on Monday.
The counterpoint, somewhat, is offered by Steven Randy Waldmann, citing the always worth reading jck of Alea, while Mish suggests that derivatives may be a major issue, which is possible but unlikely, save in the balance between long- and short-term assets.
But after Carlyle got squeezed, and now BSC has fallen, it seems fair to ask exactly what the purpose of the TSLF is.
Unless, of course, you assume that market participants are using the three weeks (now 11 days) before it starts to kill of some competition. And no one in the financial services industry would do that, would they?
Labels: FRBOperations, High Finance, Moral Hazard, nce, The Old Firm
