3.16.2008

Easy come, easy go

The value of Chairman Jimmy Caynes' 5.6 million Bear Stearns shares last Monday: $394 million.

Their value tomorrow based on the rumored $18 deal price: $101 million.

That's still enough to keep Cayne rolling in herb for the rest of his days. But the lesser employees won't fare so well. Bear employees had much of their retirement assets in the employee stock plan, which is down 75% in a week and down 90% from the all-time high. Imagine seeing that happen to your 401(k). Worse, I imagine a lot of those employees took out loans based on that wealth to buy houses, boats, etc. As Bob Saget would say, "You are f*&^ed."

UPDATE: Holy crap! Did I say $18 per share? The WSJ says the deal is done at $2 per share!!!

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