Capital Source is acquiring the assets of FMT at a very substantial discount from what they would have had to pay a year, or even several months ago. As you can see: the buyer doesn't always drop. I'm sorry for your move today if you shorted on that assumption.
I think you will be shocked at the price they are paying for it. Plus changing the name. They want nothing to do with fmt afterwards it will be a sweet deal for fmt holders, cse as well. in short term no so good, long term great! I didn't short today. Long on fmt
Where do you see the details that they are getting a discount on the assets? The discount is on real estate loans that may turn out to be worth even less over time.
CapitalSource will pay a 2 percent PREMIUM on the bank's roughly $5.6 billion in deposits, receive a discount on retained interest in certain real estate loans the bank holds and pay an additional $58 million to Fremont for the branches.
For those who got in last week congrats! I got out at $16.25 and have been watching closely (almost bought Friday)...anyway, will keep watching for the details.