FLASH: Bear Stearns on verge of failure - emergency bailout by Fed underway. HP calls for the arrest of Bear CEO Alan Schwartz for false statements

Now things are getting interesting...

I'd like to see the crap toxic mortgage CDO's the US taxpayer via the New York Fed just bought.

Oh, wait, no, I really WOULDN'T like to see the crap toxic mortgage CDO's the US taxpayer just bought.

This one's not surprising, but what is amazing (and illegal) is that Bear's CEO Alan Schwartz put out these false and misleading statements this week:

Exhibit A: "Our balance sheet has not weakened at all," he said. "We don't see any pressure on our liquidity."

Exhibit B: "We don't see any pressure on our liquidity, let alone a liquidity crisis"

Exhibit C: "there is absolutely no truth to the rumors of liquidity problems that circulated today in the market"

COME ON MAINSTREAM MEDIA - GET ON THIS STORY LIKE FLIES ON SH*T. THE US TAXPAYER IS BEING ROBBED IN THE NIGHT AND YOU LAZY BUMS DO NOTHING!!!

JPMorgan Chase, With Federal Reserve Bank of NY, to Provide Funding to Bear Stearns

NEW YORK (AP) -- The federal government and JPMorgan Chase & Co. teamed up on a bailout of Bear Stearns Cos. on Friday, a last-ditch move to save the investment bank, which acknowledged its dire financial straits after a week of firm denials.

Bear Stearns lost half of its value within 30 minutes of the market open.

While it was not clear exactly how much money Chase would pump into Bear, a person familiar with the bailout, who spoke on condition of anonymity because the talks are private, said Chase may end up buying Bear Stearns outright.

FLASH: FINALLY!!! North Carolina Treasurer calls for SEC investigation of Angelo Mozilo's insider stock trades at Countrywide Toxic Mortgage

Ya gotta hope the SEC was already investigating Mozilo and the goings-on at Countrywide.

But then again, like most of our institutions, they're probably run by monkeys too.

Three cheers for NC Treasurer Richard Moore. Hopefully this is the start of something good. And yes, like Mozilo, I'm short CFC. And hat-tip to mlimplode for the image - get your shirts over there!

N.C. Treasurer Seeks SEC Probe of Countrywide CEO Stock Trade

RALEIGH, N.C. (AP) -- State Treasurer Richard Moore has asked the U.S. Securities and Exchange Commission to investigate the timing of stock sales made by the chief executive of mortgage lender Countrywide Financial Corp.

Moore, the trustee of a pension fund that holds more than $11 million in Countrywide shares, said in an Oct. 8 letter to SEC Chairman Christopher Cox that he was "shocked" to learn that CEO Angelo Mozilo "apparently manipulated his trading plans to cash in" as the subprime crisis was heating up.

"As one of many investors who have felt the painful losses in Countrywide stock, I am outraged at his manipulation of the system and this abuse of shareholders," Moore wrote. "The timing of these sales and the changes to the trading plans raise serious questions about whether this is mere coincidence."

Moore cited reports that Mozilo was unloading 4.9 million Countrywide shares worth more than $138 million between November 2006 and August 2007. Moore said that at least three times over five months starting in October 2006, Mozilo reportedly changed the plans that outline how many of his shares would be sold monthly. That, said Moore, allowed the CEO to sell the stock before prices fell dramatically.