Trone cites the Securities and Exchange Act provision protecting investors who are buying securities in an offering.
"We believe talks may be too casual to be taken seriously, " Trone said in his note on Monday.
"Underwriters in the past have had limited success in claiming reliance on auditors' and lawyers' due diligence efforts, " Trone says.
David Trone, an analyst at Fox Pitt Kelton Cochran Caronia Waller, agrees.
"This could all point to an acquisition by Bear, whose size could increase should CCB indeed provide several billion in additional capital, " Trone noted.
"The company would only take this painful step in an effort to cease the drumbeat of negative perceptions, " says David Trone, an analyst at Fox-Pitt Kelton.
David Trone, an analyst at Fox Pitt Kelton, said the firm had operational and execution problems that made the embattled Lehman Brothers look good in comparison.
"We believe any broker could befall the fate of Bear, which had no more credit exposure issues than the other four, " says David Trone, an analyst with Fox-Pitt Kelton.
Trone says he met with Bear Stearns Chief Executive JamesCayneJames Cayne last week, and Cayne indicated that although he saw China as an opportunity, there were plenty of risks to consider.
The deal would be "a way in which Bear could have a local partner without extended capital risk, " wrote David Trone, an analyst at Fox-Pitt Kelton, in a research note Monday.
"We are very disappointed in the pre-announced results and the about-face by management with respect to its comfort level with asset marks and its capital position, " noted David Trone, an analyst at Fox-Pitt Kelton.
As many other analysts have forecast, Trone says he sees "a slow, modest recovery in activity through 2009, but nothing resembling 'normalized' conditions, " though he expects Goldman to fare better than rivals in the long run.
David Trone, bank analyst at JMP Securities, says traditional banking like making loans to consumers and businesses should be relatively flat as loan growth remains muted and the impact of releasing loan loss reserves continues to peter out.
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"Crawford and Cruz are two rising stars who apparently will be put through the test over the next few years, assuming Purcell remains in place, to determine who is best suited to take over the reins, " says David Trone, an analyst at Fox-Pitt Kelton.
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