Last year Bear Stearns was selling for over $150 a share. Not anymore. WSJ:

J.P. Morgan Chase agreed to buy Bear Stearns for $2 a share in a stock-swap transaction, people familiar with the matter say. J.P. Morgan will exchange 0.05473 shares of its common stock per one share of Bear Stearns stock. Both boards have approved the transaction.

Indeed, the Fed is taking the extraordinary step of providing special financing in connection with this transaction. The Fed has agreed to fund up to $30 billion of Bear Stearns’ less liquid assets. The deal values Bear Stearns at just $236 million…

A year ago Bear’s market capitalization was over $22 billion. It was $10 billion or so just a couple of weeks ago. Now it’s worth $200 million. Amazing.

This entry was posted on Sunday, March 16th, 2008 at 11:30 pm and is filed under General, Republicans, business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.