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Big Changes At Bear Stearns

Mysteriously this week, a British born billionaire named Joseph Lewis took a 7% stake in Bear Stearns. What's behind this purchase and are big changes afoot at the Wall Street bank hurt most by the collapse in the mortgage market?

CNBC’s Charlie Gasparino joins the panel for this conversation. Here are excerpts from what was said.

What’s the “real” story?

Gasparino says many Wall Street investors are speculating that Bear Stearns CEO Jimmy Kane prodded Lewis to buy this stake; but according to Gasparino that’s not accurate.

Gasparino believes Joseph Lewis bought the shares through his broker because Lewis thinks it’s a good deal. In other words, Gasparino thinks it’s a takeover play.

In addition, Gasparino suggests that shares of BSC could be bought by JP Morgan (JPM).

Does Bear Stearns want to sell?

They might not want to sell, but I think they might have to sell replies Gasparino.

Dylan Ratigan asks the traders if they would buy BSC?

Pete Najarian tells the panel he thinks a takeover play makes sense.

Karen Finerman recommends looking at the Jan ’08 “out of the money” options.

Charlie Gasaprino tells Karen he wouldn’t risk a penny on BSC!

On a related note, Dylan asks Gasaprino about Lehman earnings?

They’re going to be bad, speculates Gasparino. However he adds there’s a belief on The Street that Goldman (GS) earnings will be strong.

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Trader disclosure: On Sept. 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (HAS), Najarian Is Short (GS), Finerman's Firm Owns (DVA), (WMT), (COP), (JNJ); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; NBC Universal Is The Parent Company Of CNBC

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