They say Bear was sold for a song- around $230 mn. Not true. JP Morgan has taken a charge of $6 bn, so the cost comes to $6.3 bn. The building costs $ 1bn. So, we could say the financial assets were valued at $5.3 bn. Last week, the market was a little over $7 bn. So, we are talking a discount of 25% to market price before this week's run on Bear. I read that Sanford Bernstein had valued the bank at $7.7 bn before this week's crisis.
Nothing wrong with the valuation- except that Bear shareholders have almost wiped out.
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