We Know Nothing

WSJ (03.20.08):

"The collapse of Bear Stearns Cos. dealt a severe blow to investors, from big names like billionaire Joseph Lewis to thousands of employees of the brokerage firm.

But there's one group trying to contain their joy amid all the gloom on Wall Street: Investors who placed big bets against Bear Stearns.

Some Traders Win Big

"Large hedge funds -- including Harbinger Capital Partners, Greenlight Capital, Tremblant Capital Group and Paulson & Co. -- made millions of dollars as Bear Stearns's shares tumbled and various bearish positions rose in value, according to securities filings and people close to the firms."

Reuters (03.20.08):

"The Securities and Exchange Commission is investigating the events leading up to the collapse of Bear Stearns, specifically a surge in options contracts betting that the investment bank's share price would fall sharply, according to the Wall Street Journal

Citing people familiar with the matter, the paper reported the SEC probe focuses on a surge last week in 'put' options that came days before the firm's proposed sale to J.P. Morgan Chase & Co. for stock now valued at about $278.5 million, or $2.32 a share."

SEC probing options activity in Bear Stearns

Merely a coincidence, no doubt.