Putting the sale of BSC in perspective

JPM's cost for acquiring BSC:

NY Yankees' cost for acquiring A-rod:
$275MN, with an additional $30MN if he breaks the home run record
Yeah. BSC < A-Rod.

I mixed up the BNs and MNs signs, which are now fixed. That being said, this is still crazy.


  1. AKA said...

    Um, where did you get these numbers? I'm no baseballer, but mightn't there be a billions/millions mixup going on here?


  2. Swankadank said...

    Here's another interesting tidbit -- the building that Bear owns is itself worth approximately $1 billion, about four times the value JPM spent buying the whole kitten kaboodle.  

  3. Swankadank said...

    Oh, one more interesting note -- the $2/share price is one-third less than Bear's IPO price in 1985. It's hard to believe the basement price, but I recall hearing that as part of the deal, JPM agreed to guarantee (with the Fed's help) all of Bear's trading obligations, which have a notional value of $10 trillion. That and the potential for additional write-downs and lack of clarity into Bear's balance sheet are probably chief among reasons for the dollar bin find.

    There are also rumors that the Fed pushed this deal as also being necessary to prevent Lehman, who is supposedly running into serious capital liquidity problems, from experiencing the same fate as Bear.  

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