First bank failure coming?

[casey1167]

Mr. Scotsman, (of course these are all 12/31/07 numbers, so they have already recorded some of the loss in the investment, but Morgan Stanley can't like a 560 million loss in one quarter...

From Yahoo (major holders in Bear Stearns):

BARROW, HANLEY MEWHINNEY & STRAUSS, INC. 11,485,058 9.73 $1,013,556,368 31-Dec-07
MORGAN STANLEY 6,335,729 5.37 $559,128,084 31-Dec-07
Legg Mason Capital Management, Inc. 5,721,010 4.84 $504,879,132 31-Dec-07
PRIVATE CAPITAL MANAGEMENT, INC. 5,541,259 4.69 $489,016,106 31-Dec-07
Barclays Global Investors UK Holdings Ltd 4,245,451 3.60 $374,661,050 31-Dec-07
STATE STREET CORPORATION 3,550,715 3.01 $313,350,598 31-Dec-07
VANGUARD GROUP, INC. (THE) 3,149,691 2.67 $277,960,230 31-Dec-07
JANUS CAPITAL MANAGEMENT, LLC 2,765,699 2.34 $244,072,936 31-Dec-07
FMR LLC 2,359,011 2.00 $208,182,720 31-Dec-07
PUTNAM INVESTMENT MANAGEMENT, LLC 2,242,980 1.90 $197,942,985 31-Dec-07

[Chris]

I flushed about $250. So, yeah. AWESOME! Small fry compared to the guys like Joe Lewis that have lost a billion. This is a very expensive lesson in falling knives.

I should stop Ass-u-me-ing... BUT... I think Scottsman is right that the leverage at Bear was severe (compounded by severe fear) which drives the liquidity of their securities down. As one guy said in a WSJ clip, I can't believe JPM got enough due dilligence done in 3 days. I think the $2 reflects this uncertainty and that shareholders are going to demand more (as reflected in the stock price). At this point with 85% accounted as entropy I might as well ride it out considering how much my trading fees would cost me now.