Main Street Investor’s Advocate Decries JP Morgan’s Purchase & Federal Guarantee, Calls Action Outrageous; Seeks Halt Pending Congressional Hearings.
03/24/08 Securities Arbitration UPDATE: Just when one thinks it cannot get worse, it does. Q: Would a dismal U.S. economy be worse if Bear Stearns went bankrupt?
Background: It was announced today (Monday) that after another weekend of hard work, a revised dark-of-night deal resulted whereby the shareholders of Bear Stearns shall receive not the $2.00 per share negotiated the prior weekend, but, instead, five times that amount, or $10 per share.
JP Morgan Chase shall pay $10 per share and take on the first $1 Billion of losses. The other $29 Billion shall be guaranteed (operative word: GUARANTEED) by the taxpayer, who, without Congressional oversight, public exposition and comment, and/or regulatory approval through normal channels, is potentially on the hook to JP Morgan.
“The Main Street investor, the small business struggling to get a loan (let alone a guaranteed loan, at that) would salivate if provided the same government guarantee of 95%+,” said Paul Young, founder and CEO of Securities Arbitration Group today.
Paul Young: “If transparency is the order of the day of our government and taxpayers really have the voice candidates and officeholders would like us to think we have, this outrage must be stopped and stopped now pending a full oversight investigation by the SEC, regulators, and the relevant committees in Congress. It would be insightful to voters, as well, to know the positions of Senators McCain, Obama and Clinton on this government guarantee for Wall Street.”
03/19/08: Securities Arbitration UPDATE: Paul Young, founder and CEO of Securities Arbitration Group today called on Main Street investors to “urge investors to write to every federal legislator demanding an investigation of the $30 Billion guarantee to JP Morgan Chase in the acquisition of historically risk-taking Bear Stearns. ”
Paul Young: “I think the Fed bailout is terrible on many levels. Congress has a duty to Americans to fully investigate the totality of the circumstances of this remarkable guarantee to a private financial firm of taxpayer money.
Young continues: “Of equal importance is the new and unprecedented decision of the Fed to loan taxpayer money directly to securities firms, like they do banks without Congressional oversight or approval. This is potentially disastrous. I call on Rep. Henry Waxman to hold hearings forthwith.”
The longtime advocate for burned investors for 20 years who has been a leading voice to champion the rights of Main Streeters burned by Wall Street is “is concerned by the low price paid by JP Morgan knowing that many investors will stand to lose a lot of money” but is “more interested as to the seeming imbalance and unfairness between the FED’s $30 billion credit line to facilitate the buyout as contrasted with their longstanding market forces stance of the FED and the Bush administration, plus the resistance to helping regular Americans hurt by Wall Street misdeeds. I think it is absolutely outrageous,”
Securities Arbitration’
“Who pays in the end? The investors, the taxpayers,” reminds Young. “While the Bear Stearns top people count their money on the way to the Hamptons, the investors on Main Street get hurt. This action, which may be the first of many like it to come, makes the Long Term Capital $5 billion federal bailout in 1998 look like small change,” concludes Young.
As we have been asking for days, weeks, years: WHO IS LOOKING OUT FOR MAIN STREET?
Paul Young: “Who is looking out for Main Street investors? We do our best but the BS buyout, which is just that, cries for Congressional oversight. No one wants Wall Street to fail and financial systems to crumble. But the case has yet to be made that allowing Bear Stearns to fail would have left America is a significantly worse financial position than it is now.”
WHO WE ARE: Paul Young is a nationally recognized and experienced rep and advocate for burned investors who has personally recovered millions for burned investors via securities arbitration and mediation, case by case by case. Also a veteran MONEY MATTERS broadcast commentator, writer and columnist for print and Internet (Paul founded the Main Street Money webzine in 2000), who accurately forecast (in July, 06) this recession and earlier U.S. financial scandals and disasters, Paul is the founder of Securities Arbitration Group and of the non-govt. and fully free Securities Fraud Hotline @ 1-800-222-4724. Our national team’s job is to get money back for burned Main Streeters from Wall Street when and if they have been burned by their stockbroker, registered investment advisor, brokerage or other financial services firm.
Unaffiliated with any Wall Street or any financial or investment company of any kind, Paul’s constant and focused goal is recovering money for burned investors using securities arbitration and mediation.
For Burned Investors: The SECURITIES FRAUD HOTLINE is free and has been 24/7 for 19 years at 1-800-222-4724.
MEDIA ONLY: 1-310-880-8222 for immediate booking or interview. Otherwise, non-time sensitive general line 1-310-826-0278.
Email: FraudFight@gmail.com for all inquiries.
“Dedicated to recovery for burned investors via arbitration.”
