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Bear\'s Biggest Losers

Bear's Biggest Losers

Wall Street Journal   |  CASSELL BRYAN-LOW, KATE KELLY   |   March 18, 2008 09:08 AM

Read More: Bear Stearns, Bear Stearns Bailout, Bear Stearns Collapse, Bear Stearns Investors, Investment Banks, James Barrow, James Cayne, Joseph Lewis, Breaking Business News
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British billionaire Joseph Lewis made his fortune gambling on currencies. His recent investment in Bear Stearns Cos. has turned out to be a disastrous bet.

The elusive septuagenarian is one the biggest losers from the New York investment bank's problems. In just a few months, he has paper losses of about $800 million on his roughly 9.6% stake in Bear, whose share price has cratered in recent days.

A small cadre of investors, often considered some of the best in the business, own big stakes in Bear that aren't looking good. A number of these shareholders are the type of investors who ordinarily would take a hard line in a sale, demanding a higher price. But with Bear on the brink, they may have little choice.

Among the stakeholders: James Barrow, a Dallas money manager who runs the firm Barrow, Hanley, Mewhinney & Strauss Inc., is the single biggest investor, with a 9.95% stake, according to recent regulatory filings. Bear Stearns Chairman James Cayne, who stepped down as chief executive in January amid criticisms by some investors that he was too hands-off when the mortgage mess unfolded, holds a stake just under 5%. So does activist investor Bruce Sherman, the CEO of Naples, Fla., money-manager Private Capital Management Inc., a unit of Legg Mason Inc., recent regulatory filings show.

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- dadw5boys I'm a Fan of dadw5boys permalink
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They must have approved of the huge STOCK OPTIONS that Bear and Stearns managment took in December .

    Favorite    Flag as abusive Posted 12:30 PM on 03/18/2008
- popozuda I'm a Fan of popozuda permalink

I do not feel sorry for these greedy pigs one iota. Live by the sword of capitalist greed, die by the sword of capitalist greed. Let the markets sort it all out. Isn't that their mantra?

    Favorite    Flag as abusive Posted 10:31 AM on 03/18/2008
- outnow I'm a Fan of outnow permalink

While these guys are gaming there are other people to look out for - the investors who want to retire. Either way, Bush and his buddies are going to screw up both Social Security and the financial sector and war constant warfare while ignoring pollution. None of this is sustainable and they call these policies conservative. It is immature and selfish to run a government this way. We need to outlaw currency speculation with a fixed rate of exchange and craft a new international financial system based on government credit at the national level, not a monetary system of neoliberal policies.

The Robber Barons are controlling the planet and own our government officials. The party is over and now the hangover but like all addicts they will just keep going it again. Unregulated capitalism results in many forms of slavery.

    Favorite    Flag as abusive Posted 10:08 AM on 03/18/2008
- almoguy I'm a Fan of almoguy permalink

"In just a few months, he has paper losses of about $800 million on his roughly 9.6% stake in Bear"
The key word here is "paper"... could this all be made up? Got carrots?

    Favorite    Flag as abusive Posted 09:52 AM on 03/18/2008
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