March 16, 2008 - JPMorgan agreed to buy Bear Stearns, 85-year-old, 5th largest brokerage firm (14,000 employees), for $2 a share or $260.5 million (closed at $30/share on Friday, March14); Bear was unable to meet a surge in margin calls by investors who were worried about its ability to weather the credit crunch; customers were unwilling to trade with the firm; great fear was that failure might have touched off a panic - banks and brokerage firms might have refused to lend to each other, financial system might have melted with unknown consequences for the broader economy.
Last days of trading (source: Clearstation.com)
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