Warren Spector - Articles - Zimbio

Credit Agricole May Raise $9.2 Billion After Subprime Losses

Mon, 13 May 2008 09:02:00 GMT

posted by scottpasinski

Credit Agricole May Raise $9.2 Billion After Subprime Losses; Societe Generale's 1Q Net dropped 23% on provisions; Allience & Leicester falls after $763 Million writedown; Corporate Express to consider Staples' sweetened bid proposal.

Breaking: Fed Drops Rate another Quarter Point; JP Morgan buys Bear Stearns.

Sun, 17 Mar 2008 00:22:28 GMT

posted by nineloc9

Wow. Does Helicopter Ben get double time for working Sundays? From the AP:

WASHINGTON - The Federal Reserve announced a series of new steps Sunday to help provide relief to a spreading credit crisis that threatens to plunge the economy into recession.

The central bank approved a cut to its lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately, and created another lending facility for big investment banks to secure short-term loans.

The steps are “designed to bolster market liquidity and promote orderly market functioning,” the Fed said in a statement. “Liquid well-functioning markets are essential for the promotion of economic growth.”

In other news, JP Morgan Chase is acquiring Bear Stearns for 236.2 million, in what can only be called a disastrous collapse of one of the biggest investment firms. Bear Stearns was heavily exposed to the Subprime disaster, and this is being done to avert a bankruptcy. Good on the Fed and the government for approving this over the weekend. Had this not been done, and Bear was allowed to go under, the resulting run on global investment banks may have caused a major problem. Watch the markets this week closely. We’re coming out the other side of this slowly, and we’re trying to find a market bottom. However, the market’s still negotiating No Man’s Land, and there’s a lot of Bouncing Betty’s out there still.

Technorati Tags: Fed,Interest Rates,JP Morgan,Bear Stearns,Subprime

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Should Warren Spector have known?

Sun, 6 Aug 2007 15:34:35 GMT

posted by The_Zimbio_Team
At first is seems as if Warren Spector's career is the victim of a much broader economic downturn in the sub-prime real estate market. Two of his major funs collapsed this summer amid rising defaults in real estate lending.

But Warren Spector was a very senior leader within Bear Sterns -- he set strategy regarding how much risk to take in order to try for stronger returns. He purposefully decided to roll the dice by shifting his portfolio of funds towards higher risk segments. And he got stung.

He'll recover quickly and land at another fund or company. He's still well respected within the community.

Linked from http://news.bbc.co.uk/1/hi/business/6932750.stm
---
The mortgage funds headed by Mr Spector had relied heavily on securities that were backed by sub-prime mortgages - which are effectively loans for those on low incomes or with a poor credit rating.

Defaults on these risky loans have risen in the wake of the weakening housing market, as higher interest rates have increased the burden of mortgage payments.

BEAR STEARNS MELTDOWN TIMELINE

Sun, 17 Mar 2008 21:00:35 GMT

posted by tomksoft

I commonly don’t clear tending to short-term mart moves, but I meet can’t verify my eyes soured of this Bear Stearns condition wreck! The past timeline is nearly diverting (assuming you don’t stop BSC shares…):
January 12th, 2007
Share toll was $171.51.
March 10th, 2008 - Monday
Closed at $62.30 per share. From Bear Stearns CEO via Bloomberg:
“Bear Stearns’s equilibrise sheet, liquidity and top rest strong,” Chief Executive Officer Alan Schwartz said in the company’s statement. Alan Greenberg, the past Bear Stearns honcho chief tar and underway commission member, told CNBC that the liquidity rumors were “totally ridiculous.”
March 11th, 2008 - Tuesday
From Jim Cramer via CNBC’s Mad Money:
Dear Jim: Should I be worried most Bear Stearns in cost of liquidity and intend my money conceive of there? -Peter
Cramer says: â€œNo! No! No! Bear Stearns is not in trouble. If anything, theyâ€™re more probable to be condemned over. Donâ€™t advise your money from Bear.â€?
March 14th, 2008 - Friday
Closes at $30 per share. agent Reserve gives crisis give to Bear Stearns. CEO Schwartz clarifies early statement:
“Our liquidity function in the terminal 24 hours had significantly deteriorated. We took this essential travel to change certainty in us in the marketplace, alter our liquidity and earmark us to move connatural operations.”
March 16th, 2008 - Sunday
JP moneyman agrees to take Bear Stearns via a deal mercantilism for the equal of $2 per share. The money for this is provided, which united to counterbalance whatever possibleness losses if the give defaults. Huh? How become I don’t intend no-lose deals same this?
Now What?
Will this support advance to a flooded 1% modify in the FRS Funds evaluate on weekday as is expected? If so, it haw be a beatific instance to hair in whatever slope CD rates today. As for me, I’m feat to hit to re-read every those articles on ground timing the mart is bad.

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Bear Stearns to Cut 650 Jobs as Subprime Losses Lead to First Quarterly Loss

Tue, 28 Nov 2007 18:23:00 GMT

posted by scottpasinski

Bear Stearns Job Cuts Will Be Made "Across the Firm" According to Spokesman