Bear Stearns CEO Blames Media:
Echo of “Rumors and Speculation”
When it comes to assigning blame for his firm’s collapse, Alan Schwartz, the president and CEO of Bear Stearns, borrows a page from Countrywide CEO Angelo Mozilo:
Blame the media.
While Bear Stearns was “adequately capitalized and had a substantial liquidity cushion,” the firm imploded due to the weak credit market and “the unprecedented speed at which rumors and speculation travel and echo through the modern financial media environment, the rumors and speculation became a self-fulfilling prophecy,“ writes Schwarz in his prepared testimony for today’s Congressional hearing.
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14 Responses to “Bear Stearns CEO Blames Media:
Echo of “Rumors and Speculation””
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April 3rd, 2008 at 12:04 pm
the chairman of the SEC has confirmed that there is an investigation into possible illegal short selling prior to the collapse of bear.
http://www.youtube.com/watch?v=z-aInPKicho
April 3rd, 2008 at 12:58 pm
[...] Meanwhile, Bear CEO Alan Schwartz is blaming that old culprit–the media–for Bear’s downfall, according to Muckraked, pointing to Schwartz’s prepared remarks. [...]
April 3rd, 2008 at 10:31 pm
SCAM: Bear Stearns, -Timothy Geithner and
the Blackstone-BCCI set up
bear stearns, blackstone, blackrock, fed, new york, citibank, Timothy Geithner
Summary
The Blackstone Group, a major private equity firm tied to foreign policy influence lobbying groups such as Kissinger Associates, Scowcroft Advisors, and the Madeline Albright Group, had an affiliated spinoff company, BlackRock, a Caymans Island foreign bank associate, evaluate the “fairness” to shareholders of the JP Morgan Acquisition of Bear Stearns. The deal involved a bailout of Bear Stearns creditors directly, and indirectly through cash infusions via the Fed’s open window of lending, including lending billions to Citibank in exchange for mortgage collateral. The lead negotiator of the deal, the President of the NY Fed, Geithner, is a former employee of Kissinger Associates, a Saudi-China lobbying firm, and was appointed to the Fed by Peter Peterson of Blackstone. He also worked for Secretary Rubin at the Clinton Treasury Department. Secretary Rubin is now an executive with Citibank a major beneficiary of the bailout. Citibank has major Saudi shareholders, and as such is not an American bank, per se. Citibank has been investigat4ed for illegal terrorist money laundering activities in the Middle East, and Geithner was an employee at Kissinger Associates when it was engaged in discussions of mergers with BCCI, which was later indicted for drug money laundering.
http://ecothearcy.wordpress.com/2008/04/03/scam-bear-stearns-timothy-geithner-and/
bear stearns, blackstone, blackrock, fed, new york, citibank, Timothy Geithner
April 4th, 2008 at 8:57 am
What a loser. These people are absolutely insane. I’m thrilled they lost their ass and I hope it happens to all of them. Greed Greed Greed. This SOB’s destroyed thousands of lives and them blame it on someone else. SHAME ON YOU ALAN Schwartz
April 4th, 2008 at 8:59 am
Schartz is undoubtedly remembering the good, old days when Rumour flew on leaden feet.
What a putz!
April 4th, 2008 at 11:09 am
What a dick. I am sure the collapse had NOTHING to do with Bear Stearns predatory practices. http://www.madnessletters.com
April 4th, 2008 at 11:25 am
A traitor to the American economy and to all taxpayers who are footing the bill for their greed laden demise.
Read David Cay Johnstons - “Free Lunch” and “Perfectly Legal” for insight and understanding of this very smart “fool”.
If you don’t understand how and why they got away with this fiasc - yes - they have made millions off this already and they aren’t going to be giving it all back! - read the above books.
It is usually too complicated and hidden to understand without the outstanding reporting in those books ! Bravo Mr. Johnston! and thank you.
April 4th, 2008 at 12:44 pm
Funny, I bet he wasn’t complaining when that speedy rumor and speculation got him stinking rich on the way UP!…It’s funny, I never understand when people complain about how the media ruined them, or drove a system or a corporation to its breaking point. How strong are the fundamentals of a system or corporation that can be completely undone by rumor and inuendo? Even if what he’s saying is 100% true, then he’s an idiot (and possibly breached his fiduciary duties) to have committed so much of his company’s fortunes to a system that can be undone with a few bad newspaper articles…
April 4th, 2008 at 2:29 pm
Why blame Alan Schwartz, when his predecessor spent so much time on the golf course smoking pot and sleeping with everyone except his wife
April 4th, 2008 at 3:10 pm
Next he is going to blame the board for paying him $37 million in 2007 for the downfall. Counting all that money distracted him from doing his job. haha….
April 4th, 2008 at 5:07 pm
Why does everyone call these finance folks “idiots” “insane” and other derogatory remarks?
These guys are worth millions of dollars if not hundreds of millions of dollars.
I know loan officers who did subprime loans and they were making $50,000 a month…I think they are the smart ones.
They took advantage when they could and now they are being bailed out.
They are smart its us the voters who vote for the idiots who bail out finance folks.
April 4th, 2008 at 7:51 pm
People like him would be hanged by your forefathers.
This generation are big pussies, too scared, that is why these criminals can go their way.
Never be angry at the oportunists, be mad at the ones that let em go their way.
THAT IS YOU!!!!
April 5th, 2008 at 7:48 pm
You tell em’ Schwartz. Defend yourself and your bretrhen.
April 6th, 2008 at 9:25 am
Anyone who lives this deeply in an alternate universe, shouldn’t be in charge of anything in this one.
The Bear problem is now obvious - it, like many large companies (and the Bush Administration), was run buy people that are incapable of taking responsibility for their own actions.