"The real question is who is next?" wonders Michael Greenbergerof the University of Maryland School of Law. "If Bear Stearns canbe discounted from $30 per share to $2 per share in 48 hours, itcan happen to anyone" says the former director of the Division ofTrading and Market at the Commodity Futures Trading Commission anda former member of the Steering Committee of the President'sWorking Group on Financial Markets. Today he teaches a law courseat the University of Maryland on mortgage related financialproducts.
There are real concerns that there are other investment bankswith MBS heavy portfolios that are similarly situated, he tellsGlobeSt.com, and could just as quickly find that the market hasconcluded that their own internal valuations of their stock andassets are grossly overpriced. It is legitimate to wonder how manytimes the Fed will be stepping in--or should step in, he says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
