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Sunday, November 8, 
11:26 am

Bear investors left holding pennies

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Who would have ever imagined that J.P. Morgan Chase & Co. would be able to acquire Bear in a fire sale price of $2 per share, or $236.2 million? Investors were seemingly still trying to recover from Friday when the company dropped to a stock market valuation of $3.54 billion, or $30 per share, on March 14.

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Only about a year ago, Bear's stock was trading at $170 per share.  Obviously, many Bear investors lost heavily on this sale to J.P. Morgan. Here's a look at some of the top 10 holders of Bear who took a big hit on their wallets, according to CNBC.com: 

  • Wilimington Trust
  • Barrow, Hentley Mewhinney, Strauss
  • Joseph Lewis
  • Jimmy Cayne
  • Legg Mason

But the fire sale forces some to wonder the obvious questions such as those posed by Peter Morci, business professor at the University of Maryland:  "Which of the big banks will be next to fail? How many more banks will fail? Will the whole system turn to panic if Citigroup unwinds?" - Gerald Magpily

See TheDeal.com: J.P. Morgan to buy bear Stearns
JP Morgan, Bear Stearns conference call recap
J.P. Morgan-Bear Stearns advisers







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