Morgan to pay $2 per share for Bear Stearn

[luckyd1976]

After a quick search I found that it's FAS 157, which came into force as for November 15, 2007 for fiscal years starting thereafter.

OK Thanks for the Clarification...

 

[luckyd1976]

As for lower rated, I don't believe that to be a correct statement. I think they are still only accepting AAA paper. Of course you have take that rating for what its worth.

The Rating agencies have really exasperated this problem, to. Seems to be late to the party. No better than most Broker firms Upgrades/Downgrades.

Rhody,
In regards the the rating agencies? Do they have any insider powers, more than say you and I? I mean to me it's always been confusing. Do the companies open up for the Agencies?

 

[Rhody Trader]

In regards the the rating agencies? Do they have any insider powers, more than say you and I? I mean to me it's always been confusing. Do the companies open up for the Agencies?

The ratings agencies are employeed by the companies to determine the ratings, so you'd think they would have some extra access, but I can't say for sure on that or how much that might be.

 

[grantx]

Lucky, John,

I don't buy this 'blame the rating agencies' line.

If the banks' risk management couldn't determine (or wouldn't acknowledge) the value/exposure of all their positions, how could an outside body even assuming it had access to the books be expected to do the same?

Grant.

 

[grantx]

.

 

[luckyd1976]

Lucky, John,

I don't buy this 'blame the rating agencies' line.

If the banks' risk management couldn't determine (or wouldn't acknowledge) the value/exposure of all their positions, how could an outside body even assuming it had access to the books be expected to do the same?

Grant.

Agreed. Blame should lie with individual managements.

I always thought the Ratings were a joke seemed to be always late to the party.

Unfortunately though they do help determine Yields & supposed risks.

Even today the Fed is only taking on AAA rated. Correct me if Im wrong, didnt the CDO/MBS bond creation (10,000 mortgages lumped together to create a AAA bond) come from the problem of everyone thinking this is a AAA investment? Crazy how AMBAC/MBIA fight and scratch to keep there AAA ratings. I guess when you are the insurance types, ratings are more important than earnings.

What do you guys think of the $10. a share offer now for BSC?

Lots of people are claim(ing) the financials have bottomed because of FED PUT.?!

 

[luckyd1976]

The ratings agencies are employeed by the companies to determine the ratings, so you'd think they would have some extra access, but I can't say for sure on that or how much that might be.

lol So its' like PFE and MRK hiring the doctors for the double blind study.?.?

Note to self... I really should read up more on the agency ratings

 

[grantx]

John,

Do ratings reflects fees charged? That's a terrible insinuation. Shame on you, Sir.

Grant.

 

[Rhody Trader]

Do ratings reflects fees charged? That's a terrible insinuation. Shame on you, Sir.

You have to figure the ratings agencies have some kind of flat scale, but you can't help wondering, can you?

Here's the funny thing. MBIA told S&P (or Moody's, I can't recall) that they didn't want them rating the company anymore (or at least some specific element of their business). The agency basically said, tough - we're going to keep rating you.

 

[grantx]

John,

Look at post 856/7

http://www.trade2win.com/boards/us-indices/27979-dow-2008-a-86.html

Grant.

 

[Rhody Trader]

Ah. Fitch. Now I remember. That quote answers the question from earlier about the non-public information too.

 

[grantx]

As I said in post 31 above:

"There has also got be re-examination of fundamentals, and a ultimately a revaluation, of major banking stocks"

U.S. Stocks Decline as Analysts Predict Bigger Losses for Banks

March 29 (Bloomberg) -- U.S. stocks extended their worst quarterly decline since 2002, falling for the fourth time in five weeks, on the prospect of dividend cuts and deeper earnings declines for financial companies.

Full article:
Bloomberg.com: Worldwide

Grant.

 

[luckyd1976]

As I said in post 31 above:

"There has also got be re-examination of fundamentals, and a ultimately a revaluation, of major banking stocks"

U.S. Stocks Decline as Analysts Predict Bigger Losses for Banks

March 29 (Bloomberg) -- U.S. stocks extended their worst quarterly decline since 2002, falling for the fourth time in five weeks, on the prospect of dividend cuts and deeper earnings declines for financial companies.

Full article:
Bloomberg.com: Worldwide

Grant.

No new news here.

Now on to phase two of the banking issues, Recession Earnings (contractions of) Estimates.