Investment Banking in 2008 (B)A Brave New World
The Aftermath of Bear Stearns
Furious Bear Stearns shareholders found a loophole in the hastily arranged merger documents. In the rush to consummate the deal, JPMorgan Chase (JPMorgan) had accidentally agreed to honor Bear’s trades for up to a year irrespective of shareholder approval of the merger. This oversight created the terrifying specter of JPMorgan failing to acquire Bear but nonetheless remaining on the hook for billions in potential losses from Bear trades gone awry. Holding negotiating leverage for the first time since the crisis began, newly minted Bear CEO Alan Schwartz pushed JPMorgan CEO James Dimon to up the final offer price from $2. In the ensuing week-long fracas, Bear once again ...
Get Investment Banks, Hedge Funds, and Private Equity, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
