Youhaverights.com Legal Topics Podcast

On March 16, 2007, Bear Stearns (BSC) agreed to be acquired by JP Morgan Chase for a mere $2.00 per share. This came after an announcement on March 14, 2008 that JP Morgan Chase was part of a bail out package to keep Bear Stearns from going bankrupt. Just days before the bailout was announced, Bear Stearns executives publicly downplayed the companies troubles in an apparent fraudulent attempt to instill investor confidence. The decline of Bear Stearns stock price and subsequent sale is one of the sharpest declines for a blue chip stock ever. On March, 12, 2008 the stock was trading at $61.58 and just four days later Bear Stearns, with apparently no other options but bankruptcy, agreed to be purchased for $2.00 per share.