Saturday, March 15, 2008
Trumping while home burns
Fed Races to Rescue Bear Stearns In Bid to Steady Financial System - WSJ.com
But by Thursday afternoon, it was becoming clear within Bear that the firm couldn't withstand an accelerating retreat by worried customers -- in effect, a run on the bank. Securities firms that had been willing to accept collateral from Bear Stearns were insisting on cash instead. And the hedge funds that use Bear to borrow money and clear trades were withdrawing cash from their accounts. Around 4:30 p.m., Mr. Schwartz was convinced that Bear was facing a desperate situation.
He huddled with Chief Financial Officer Samuel Molinaro, Chief Risk Officer Michael Alix and Bear lawyers, debating what to do next, said people familiar with the discussions. The group convened a conference call with the board to discuss options. Mr. Cayne dialed in from Detroit, where he was playing in a bridge tournament, say people familiar with the matter.
What is it with these guys and bridge tournaments? Jim Cayne lost $700 million over the last few months (his stake in BSC) after the original debacle over their hedge funds - when he was at a bridge tournament with Warren Spector. I'd never be able to play bridge again.
3 Comments:
By 
TigerHawk, at
Sat Mar 15, 04:09:00 PM:
I'm sure he's hoping to run into Buffet or Gates, either of whom could bail him out with a phone call.
By 
, at
Sat Mar 15, 04:36:00 PM:
A combination of Level 3 symptoms of psychological denial: concentration on the game of bridge is both displacement and dissociation.
"Level 3 Defense Mechanisms are often considered neurotic but are fairly common in adults. They can have short-term advantages in coping, but they often cause long-term problems in relationships, work, and enjoyment of life for people who primarily use them as their basic style of coping with the world."
See http://drsanity.blogspot.com/2004/08/psychiatry-101-defense-mechanisms.html
By , at
Sun Mar 16, 08:12:00 PM:
Gives new meaning to the term "Bear Market."
