JPMorgan Chase buys Bear Stearns

The eleventh hour deal sees JPMorgan Chase exchange 0.05473 shares of its common stock per one Bear Stearns share. Based on the closing price of 15 March, the deal has a value of approximately $2 per share. The Federal Reserve will fund up to $30bn of Bear’s less liquid assets, in addition to the financing it ordinarily provides through its discount window, protecting JP Morgan’s strong balance sheet. Bear Stearns is now valued at just $236m, with its shares 98% down on the $158 high in April 2007. Effective immediately, JPMorgan Chase will guarantee the trading obligations of Bear Stear...