Did Bear Stearns executives lie?
Bear Stearns just can't win. The humiliation of the Fed-backed, JP Morgan Chase bailout was rank enough. Now comes word from Financial News Online that the SEC is taking a look at statements by executive committee chairman Ace Greenberg and CEO Alan Schwartz before the deal that said, outright, that the bank had no liquidity problems. No one really believed them, obviously, but did they lie? People have speculated. It will be interesting to see what comes of this. The irony is that JP Morgan Chase will be liable for all the damage.
For more:
- here's the Financial News Online article
- Schwartz likened to Skilling. Article
Related Articles:
Bear Stearns: A timeline of decline. Timeline
Can Bear Stearns be salvaged? Article
The future of Bear Stearns. Editor's Corner
Cayne joins rogues list. Article
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By Anonymous | Posted 10:03am | March 20, 2008
Oh, "I feel for Alan too." The Esso Bee enabled virtually every boiler room, pump and dump operator, bogus issuer and other miscreant broker dealer in the last many years. They catch him for something else; it isn't breaking my heart.
By Anonymous | Posted 3:47pm | March 21, 2008
Did Ace Greenberg still hold Bears Stearns stock at demise of company last week -- or did he sell beforehand?
By Anonymous | Posted 3:50pm | March 21, 2008
Did Ace Greenberg still hold Bear Stearns stock at time of demise/sale to JP Morgan -- or when did he sell his position? Why would he state just a week before demise that liquidity no problem?