WB has made a lot of money on arbitrage. Hard to see any arbitrage opportunity here. Obviously, JPM and BSC's management agreed that BSC's book value of $84 was optimistic, shall we say. Truth be known, at today's market, it's assets are probably negative, not $2.

Heard a theory that the Fed pushed both into this deal to punish BSC and send a message to other financials to get their act together, because if we step in there will be hell to pay. May be something to that. But, I think it's all about the assets being negative and the Fed had to shore it up.