Blog

Week of March 17, 2008

Sunday, March 23, 2008, 2:40 PM

Frantic race to save Wall Street giant

03/17/2008

This
is a fascinating tale of just how serious the Bear Stearns event was
and the political and financial machinery that was brought to the table
to sculpt a solution.

Frantic race to save Wall Street giant [link to external article]

Schwartz, who had taken over the helm from Cayne in
January, knew that without an immediate cash injection the 85-year-old
institution, which had survived the Great Depression, was bust.
He called his key adviser, Gary Parr, the deputy chairman of Lazard and
one of a handful of men on Wall Street able to raise serious cash at
short notice.

One of his first calls was to Jamie Dimon, the chairman and chief
executive of JPMorgan. Once Dimon heard the extent of Bear Stearns's
difficulties, it was clear he would have to help somehow.
The President, George Bush, was notified and Chris Cox, the chairman of
the Securities & Exchange Commission, was put on alert. Calls were
made to Tim Geithner, the president of the New York Federal Reserve,
and Ben Bernanke, the chairman of the Fed. The men gathered their teams
and began trying to work out how they would react.


MF Global (BIG brokerage) shares slump 64%

03/17/2008

The share price of MF global has fallen off a cliff. If you have money there, get it out. Now.

SAN FRANCISCO (MarketWatch) -- MF Global Ltd. shares slumped 64% on
Monday amid a broad decline in other brokerage stocks. MF Global is a
leading commodities broker. The stock was recently down 64% at $6.21
during midday trading, outpacing most other brokerage shares

I wish I could keep up with
everything...right now I am merely trying to help dodge bullets and
protect what you've got. If you have money at MF Global there's a
pretty good sign here that something is badly wrong.



Last year I had money with a Futures outfit called Lind-Waldock. I saw
their share price plunge one day and immediately wired my money out of
there. In this business, shoot first and ask questions later.

I will now be screening the share prices of all brokerages
carefully because our first clue that there's a problem always comes
from the stock price. Press releases come later. Much later. Mine
happen to be Ameritrade and Optionxpress. If you have one or more that
you;d like to put on my watch list, just let me know. So far so good on
mine....

Check out this ugliness....

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