Danny Schechter - ColdType

130
WEDNESDAY, MARCH 12 – BEAR SHARE PRICE: $64
Bear Stearns CEO Alan Schwartz goes on CNBC to deny
liquidity rumors
BAMBER: By the Wednesday, our CEO went on CNBC to
dispel the rumors. It’s a catch 22 situation, generally you do
not want to comment on the situation. Because if you do, people
think this might be true whether there is smoke or fire.
THURSDAY, MARCH 13 – BEAR SHARE PRICE: $62
BAMBER: On Thursday that is when we heard that we
were bleeding out.
DS: ... the questionable practice known as naked short selling
was contributing in the steady long decline in the stock
price. Obscure trading rules allow to sell a share of stock only
providing the buyer of IOU for a short period of time until so
called delivery failure can be resolved. Beginning the day the
bet was placed against Bear, million of delivery failure begin
to inflate the number of shares that appear in circulation and
therefore deflating the value of each share.
BAMBER: It was strange because it felt like we are being
sucked into a vortex. There was very little we could do to fight
it. There was a momentum that began with the rumor. That
was a small force of fire that went out of control.
FRIDAY, MARCH 14 – BEAR SHARE: $58
Federal Reserve announces it will lend money to Buy Bear
and Transfer to JPMorgan Chase for $2 a share. Bear Share
price drops.
BAMBER: The shares dropped basically 50% in the opening
moments. They knew it was over.
Ben Bernanke announces the Fed’s intervention.
DS: The BS employees discovered that The Fed. Reserve