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Billionaire Lewis Loses $1.16B On Bear Stakes

Billionaire Lewis Loses $1.16B On Bear Stakes

Bloomberg   |  Katherine Burton and Sree Vidya Bhaktavatsalam   |   March 17, 2008 09:31 AM

Read More: Barrow Hanley, Barrow Hanley Mewhinney, Bear Stearns, Bear Stearns And JPMorgan Chase, Bear Stearns And Mortgage Crisis, Bear Stearns Bailout, Bear Stearns Buyout, Bear Stearns CEO, Bear Stearns Collapse, Bear Stearns Purchase, Bear Stearns Sale, Joseph Lewis, JP Morgan, JP Morgan Chase, Breaking Business News
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Joseph Lewis, the billionaire investor who bought 9.4 percent of Bear Stearns Cos. last year, lost $1.16 billion on his stake after JPMorgan Chase & Co. agreed to buy the securities firm for $2 a share.

Lewis, the New York-based firm's second-largest holder, paid an average of about $107 apiece for 11 million shares, according to a filing submitted last year to the Securities and Exchange Commission. The stake has plunged 98 percent in value since the purchases. Bear's biggest investor at year-end was money manager Barrow Hanley Mewhinney & Strauss Inc., whose 9.7 percent holding has fallen by $991 million.

New York-based JPMorgan, the third-largest U.S. bank, said yesterday it will pay about $240 million for Bear, which was crippled last week after clients pulled money and investors balked at trading with the firm because of losses on its subprime-mortgage holdings. Bear's market value was $13.6 billion at Nov. 30, the end of its fiscal year.

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- kyeblue I'm a Fan of kyeblue permalink

He has no one to blame other than his stupidity. He can do nothing except giving a good portion of his remaining wealth to the lawyers.

    Favorite    Flag as abusive Posted 09:41 AM on 03/20/2008
- mrcontinental I'm a Fan of mrcontinental permalink
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The holdouts will hang on til the bitter end and lose their pensions, 401(k)s and life savings without a fight. This meltdown has been brewing for seven months and still folks are not liquid yet. Good luck then.

    Favorite    Flag as abusive Posted 08:05 PM on 03/17/2008
- FrictionSoul I'm a Fan of FrictionSoul permalink

Yeah, and who the fuck cares about that? The 1.16 billion I mean. This guy bought his share with full knowledge that this legal theft of our money can't continue forever.

We need to go back to the Founding Father's vision of what a corporation can and cannot do, and how much they can charge in order to make everything old new again: relocalize.

    Favorite    Flag as abusive Posted 01:50 PM on 03/17/2008
- speakingtruth2power I'm a Fan of speakingtruth2power permalink
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Milton Friedman's Nobel winning work in economics and Naomi Klein's Shock Doctrine

both point to the Bush crime family's treason extended from starting an illegal war, to the

intentional destruction of our economy. The Amero and the virtual reality of GHWB's NWO

will culminate in the destruction of the USA, creating the Norte American Fascist Union!

    Favorite    Flag as abusive Posted 01:04 PM on 03/17/2008
- abbiehoffmansghost I'm a Fan of abbiehoffmansghost permalink

Big fucking deal, I broke a nail last week.

    Favorite    Flag as abusive Posted 10:07 AM on 03/17/2008
- dd39203 I'm a Fan of dd39203 permalink

I have one question. Why does any one single person need over a billlion dollars? Why can't the government just take all monies over a billion dollars? I mean really, what do you do after the first billion? There really should be a law!

    Favorite    Flag as abusive Posted 11:52 AM on 03/17/2008
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