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Will Bear Stearns go bankrupt?

Topics: Investing   Business  

Background

Several financial institutions went bust due to their overexposure to sub-prime mortgages. Sub-prime mortgages were mortgages sold to high-risk homeowners who could barely afford the payments. As the homeowners defaulted on their loans, many banks such as Bear Stearns were left owning houses worth less than the value of the houses’ loans. Ultimately the US Government had to bail out Bear Stearns.
 


Expert Opinions

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Investment Bank
Financial Analyst
Rumors arguing that a third party is going to make an investment in the firm make sense to me...     
26 Sep 2007   Source
Financial Research Firm
We are keeping our target price of $135, 1.5 times projected book value...     
22 Oct 2007   Source