JPMorgan buys Bear Stearns

Sign Up for the undefined Newsletter

JPMorgan Chase has acquired Bear Stearns, which had been pushed to the brink of collapse by the subprime mortgage crisis, for a bargain price $270 million in stock. That sale price includes the Bear Stearns headquarters at 383 Madison Avenue. The 85-year-old investment bank, which survived the Depression, had been decimated by its mortgage-backed investments. JPMorgan bought the firm for less than one-tenth of its market price on Friday. JPMorgan and the Federal Reserve will guarantee Bear Stearns’ huge trading obligations.  

Recommended For You