Whistle While You Work

All the brokerage heads have been guilty of whistling past the graveyard. It does not seem to be very effective, and if Jimmy can’t get his stock turned around he might have to start caddying for pocket change.

Today is a watershed for Bear Stearns. And not because the stock is trading at levels last seen in mid-2005. Jimmy is actually in the office on a Friday in August....Shocking

“S&P’s action highlights the concerns in the marketplace over the recent instability in the fixed income environment,” said James E. Cayne, chairman and chief executive officer of The Bear Stearns Companies Inc. “Contrary to rumors in the marketplace, our franchise is profitable and healthy and our balance sheet is strong and liquid. Bear Stearns has thrived throughout both tumultuous and fortuitous markets for the past 84 years. We are experiencing another market cycle and we are confident in Bear Stearns’ ability to succeed in this environment as it has in so many others.” With respect to operating performance and financial condition, the company has been solidly profitable in the first two months of the quarter, while the balance sheet, capital base and liquidity profile have never been stronger. Bear Stearns’ risk exposures to high profile sectors are moderate and well-controlled. The risk management infrastructure and processes remain conservative and consistent with past practices. This structure and strong risk management culture has allowed the firm to operate for all of its history as a public company without ever having an unprofitable quarter...”

We have one word for him.

Retire

Bear Stearns Responds to S&P Action
Business Wire

--------------------------------------------------------------------------------------------------------------
The content contained represent 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

Comments:

<< Back to main