Having reviewed Richard Florida’s Whose Your City the other day, I am unusually alert to stories about people flocking to cities from suburbs and the countryside.
So this FT story this morning caught my eye. It is about a McKinsey Global Institute study of urbanisation in China and includes this paragraph: Read more
Hmm. Well, we have now seen the terms of the JP Morgan’s revised $10 a share offer for Bear Stearns and I do not think it is a good outcome for the Federal Reserve.
The Fed does gain something from the new deal – JP Morgan takes on liability for the first $1bn of losses from the $30bn portfolio of illiquid assets that it guaranteed as part of the first agreement. Read more
Is JP Morgan about to give in to Bear Stearns’ angry shareholders and offer five times its original $2 a share price?
So Andrew Ross Sorkin says in the New York Times this morning:
Under the terms being discussed, JPMorgan would pay $10 a share in stock for Bear, up from its initial offer of $2 a share — a figure that represented a mere one-fifteenth of Bear’s going market price.
The Fed, which must approve any new deal, was balking at the new offer price on Sunday night after several days of frantic, secret negotiations, these people said. As a result, it was still possible the renegotiated deal might be postponed or collapse entirely, said these people.
I do not understand how the Federal Reserve can stand behind the deal on anything like the original terms if JP Morgan is going to pay more. Read more