Bear - Thinking out loud - our litigous culture

[John Galt]

So, we know today that JPMorgan has offered to acquire BS for $2 per share.
That is (round numbers, here) about $250M dollars, so I assume there's about
125M outstanding shares.

(I think we can safely say that there aren't any BS shareholders who feel
"bailed out.")

At any rate, CNBC is reporting that JPM has escrowed 6B for legal expenses
for the expected lawsuits. So, they've escrowed enough money so if they
plowed that back into the deal, paying 6B 250M for BS, they could be
offering $50 a share?

Seems like the stockholders would sign away their right to litigate rather
quickly.......

JG

[dkw1...@yahoo.com]

You don't have to worry about JPM. They are sitting pretty. The govt
will not allow them to lose on this deal, even if they have to
intervene again with more money OR legal precedents if there are suits
against JPM. Another way to look at this is that JPM will have no
liability for any lawsuits from BSC shareholders. They can try to get
a few pennies from class action suits, but in the end they will get
zip, and that includes Lewis. Oh, the price could be above $2 a share,
but it won't be $10 a share. Putting it into perspective, which is the
only way to look at it, most people would take the money rather than
nothing, which is what they will get if it doesn't go through. Oh,
it's going through. The Fed, the President, and main street have
spoken, even if much of it was behind closed doors. dkw

[Lawyerkill]

> spoken, even if much of it was behind closed doors. dkw- Hide quoted text -
>
> - Show quoted text -

Don't forget the shareholders still have to approve this and Lewis is
not that happy.

[star...@yahoo.com]

OK, but you do understand that there will probably be magnificent
pressure (the theoretical equivalent of economic gunpoint???) on the
holders to approve this...

Or would they rather risk the entire mortgage industry going up for
auction, one domino at a time?

Mike

[Frithiof Andreas Jensen]

<star...@yahoo.com> skrev i en meddelelse
news:e986dcf0-e8f7-4ac9...@c19g2000prf.googlegroups.com...

I would! Not my problem, y'see. In fact it's not really anyones problem.
They shat their own bed and now they can lie in it.

>
> Mike