Comments on: Bear Stearns – Sometimes Losing A Client Is A Good Thing http://retheauditors.com/2008/03/17/bear-stearns-sometimes-losing-a-client-is-a-good-thing/ The Business of the Big 4 Audit Firms Mon, 06 Sep 2010 20:37:36 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Anonymous http://retheauditors.com/2008/03/17/bear-stearns-sometimes-losing-a-client-is-a-good-thing/comment-page-1/#comment-445 Anonymous Wed, 19 Mar 2008 22:39:00 +0000 http://76.12.174.187/?p=619#comment-445 There are no more deals to be made regarding BSC. $2 was paid to keep the deal from bankruptcy which forces all of BSC's off balance sheet shenanigans out in the open. It's a last ditch effort to save the other banks and IB's from the same fate. It won't work. BSC has 3 or 4 clones out there in the same situation. <br/><br/>Regarding the Fed opening the window. The Fed has opened every window, door, doggy-door and vent in the entire house. Liquidity is not the issue, it's trust.<br/><br/>bsmup There are no more deals to be made regarding BSC. $2 was paid to keep the deal from bankruptcy which forces all of BSC’s off balance sheet shenanigans out in the open. It’s a last ditch effort to save the other banks and IB’s from the same fate. It won’t work. BSC has 3 or 4 clones out there in the same situation.

Regarding the Fed opening the window. The Fed has opened every window, door, doggy-door and vent in the entire house. Liquidity is not the issue, it’s trust.

bsmup

]]> By: Anonymous http://retheauditors.com/2008/03/17/bear-stearns-sometimes-losing-a-client-is-a-good-thing/comment-page-1/#comment-441 Anonymous Wed, 19 Mar 2008 07:19:00 +0000 http://76.12.174.187/?p=619#comment-441 I think the Bear Stearns deal gets totally reworked. And, now that the Fed has opened the window, the only issue that probably matters now is the value of the dollar. <br/><br/>Certainly the BSC lawsuits are already flying around. The question is whether bad accounting, bad decisions, or real events caused the meltdown at BSC. Seems to me that the BSC business model was highly speculative and leveraged (30 to 1 on equity) and relied on the confidence level of counterparties. Unless there is something horribly wrong in the 10-K or a fraud is detected, I don't see much auditor exposure. But I do see a lot of lawyers getting involved in this mess, and the audit firms will be producing mass quantities of documents for years to come.<br/><br/>Final Four Guy I think the Bear Stearns deal gets totally reworked. And, now that the Fed has opened the window, the only issue that probably matters now is the value of the dollar.

Certainly the BSC lawsuits are already flying around. The question is whether bad accounting, bad decisions, or real events caused the meltdown at BSC. Seems to me that the BSC business model was highly speculative and leveraged (30 to 1 on equity) and relied on the confidence level of counterparties. Unless there is something horribly wrong in the 10-K or a fraud is detected, I don’t see much auditor exposure. But I do see a lot of lawyers getting involved in this mess, and the audit firms will be producing mass quantities of documents for years to come.

Final Four Guy

]]> By: Anonymous http://retheauditors.com/2008/03/17/bear-stearns-sometimes-losing-a-client-is-a-good-thing/comment-page-1/#comment-426 Anonymous Tue, 18 Mar 2008 02:40:00 +0000 http://76.12.174.187/?p=619#comment-426 Next question is, "Who is going to buy JPM for $2 a share, and LEH and MER, etc. etc? Or better yet, is there anybody left who can?" <br/><br/>Stay below the FDIC limit ;)<br/><br/>-bsmup Next question is, “Who is going to buy JPM for $2 a share, and LEH and MER, etc. etc? Or better yet, is there anybody left who can?”

Stay below the FDIC limit ;)

-bsmup

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