Rear View Mirror: Quarter Ends with a Bang

Never a dull moment.

The second quarter certainly was eventful, particularly in its final week. The tape was looking dreadful until the Politburo at Bear Stearns issued a statement late Tuesday providing clarity on their situation. Given that every trader worth a damn has kept one eye firmly focused on the brokers, a little reassurance went a long way, lighting the fuse for the usual end of quarter fireworks. Overlooked during the week was the other announcement from Bear, the roll-out of their new web portal BearVIEW:

BearVIEW offers smoother integration and sharing of information across a broad range of features. It includes quick access to contact lists, real-time holdings, positions and balance information through simplified, right-click functionality. BearVIEW also streamlines the money transfer process and gives clients the ability to choose from over 70 currencies. Market data, quotes and charts are also available on the customizable BearVIEW homepage.

With this release and planned future releases, our clients will begin to interface with their clearing or custody firm at an entirely new level,” said Rich Cancro, managing director and head of product development for BDIAS. “Feedback from our broker-dealer and investment advisor clients will continue to drive our efforts as we further enhance BearVIEW.”

Alas, the state of the art platform was not rolled out in time to help Bear make sense of their positions or true exposure in the hedge funds. Jeff Lane was brought in today to head BSAM, but don’t worry about Rich Marin.  His bonus might suffer a tad, but he still has a job. For the time being, anyhow. Although we will miss the movie reviews, which of course you read here first.

Our musings last week, which got the ball rolling, included the guess that Rich would live to see his fifth year anniversary at the firm. Bear’s benevolent corporate culture might not extend to the rank and file at 383 Madison, but the executives running the firm always seem to close ranks around their own. Is this the mafia or a publicly traded corporation?

It is a bit hypocritical that Bear holds their employees to perhaps the strictest electronic communication guidelines on the Street. (No IM, etc.) How could they let Rich write a public blog? He certainly seems like a good guy all around, but lesser indiscretions have waylaid many a Bear employee over the years. Did he not read and sign his code of conduct? Or are the rules at Bear selectively enforced?

At the end of the day it is not my problem, and Bear can’t fault the scrutiny it received given they were on the verge of ending prosperity and capitalism as we know it.

Will the governance gang soon rattle the board’s cage? It might be a waste of time. Sunshine can’t disinfect everything, or dislodge ticks who have had years to dig themselves in.

Shifting gears,

Apple might be getting all the headlines, but Research in Motion is the stock of the week. Hats off the tech stock gang at UBS, as they stuck by the story while mere mortals waffled.  It is a huge windfall for shareholders, many of whom persevered and brushed off concerns over the patent lawsuit. And in growth stock land the landscape is divided into two camps, those who own RIM and and those who don’t.

Last but not least, Michael Moore’s visit to the New York Stock Exchange provided a little comic relief after weeks of constant nail biting. Moore might not be a friend of capitalism, but he certainly knows how to provide moments of levity, assuming you don’t take him too seriously.

Since Rich’s movie reviews are no longer, you will have to roll the SICKO dice on your own. For now all we can do for you is serve up the classic rabbit scene from Roger & Me. Although private equity dollars continue to flow into Michigan, the state’s plucky residents might all be eating bunnies soon if Wilbur Ross and company can’t rescue the state’s bread and butter industry.

But enough blood has been spilled this week. We can’t guarantee flawless weather in the Hamptons, but we can point you in the direction of a little entertainment. Sir Paul McCartney is still rumored to be holed up in Amagansett, but the chances of catching him singing are slim to none.

Booga Sugar will have to do.

The Stephen Talkhouse
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The content contained represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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