Sunday, March 16, 2008

What's In a Name?

A new rule for Wall St. investment firms: you really shouldn't put the word "Bear" in your name.

Why tempt fate?

According to the Wall St. Journal, J.P. Morgan Chase has agreed to buy venerable investment firm Bear Stearns for the low, low price of $236 million. That's million.

For the sake of context, BS (heh) was valued at $3.54 billion at the end of business Friday. It was worth in the neighborhood of $20 billion back in January 2007. That would be a one(ish)-year drop in value of over 98%.

Perhaps I'm just spitting into the wind, here, but maybe it's not a good sign for our economy when a respected 85-year-old Wall St. firm could conceivably be bought by a PowerBall winner.
Listed on BlogShares