Bear Stearns Falls to JP Morgan After 83 Years
Bear Stearns’ investor relations page says it all:
“Never an unprofitable year—Bear Stearns’ primary emphasis is on creating long-term value for shareholders.”
“83 Years of Profitability.”
All it took was one bad year for the house of cards to collapse.
It will likely be years before we know how deeply the sub-prime crisis affected Bear’s balance sheet. Exactly how devalued are its derivative holdings, and what, if anything other than a very established and reputable brand, is JP Morgan buying?
One thing is certain: giants are falling, and it’s best to get out of the way when that’s happening.
Disclosure: sold SKF (ProShares Ultrashort Financials) Friday 3/14. Oops.