Sales Careers >> Ask a Sales Pro >> Did The Fed Push Bear Into a Bad Deal?
Did The Fed Push Bear Into a Bad Deal?
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Posted 8 months ago One of our users posted a very interesting news article from the WSJ about the deal and how fast it happened. What do you guys think, did the Fed push Bear Stearns into a bad deal? |
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| Posted 8 months ago Something is better than nothing |
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| Posted 8 months ago |
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| Posted 8 months ago what we have here is a case of transitive preferences. Much like an alcoholic who would prefer not to have a drink before the first drink, but prefers 5 after the first, but then prefers that she had none after 10. Bear would prefer a better deal after the fact, taking into account that a financial crisis ala dominoes was averted. If the deal didn't go through, and the bank run spread to other firms causing widespread damage, than the preference definitely would be to have made the deal. In any case they're likely to re-negotiate and get more money in the near future seeing as they're still trading at $6 against the two bucks and change that was negotiated. All in all a compelling case study for quick federal intervention in times of banking and financial crisis. |
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| Posted 8 months ago You're right Dan, Bear Stearns was under incredible pressure from the government to restablize the markets and it did work very well for the greater good. I did not know they could re-negotioate..interesting. I did hear that there are huge ebay auctions of Bear memorabilia right now! |
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| Posted 8 months ago The Fed made the right move! |
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| Posted 7 months ago well JP Morgan is paying four times more now than the original offer so it seems like they may have |