Bear Stearns collapses

By Edward Harrison On Mar 16, 2008

The credit bubble has claimed its first major finance company: Bear Stearns. The venerable firm, which traded as high as $160 in 2007 and was trading above $60 just last week, was bought for a mere $2 per share by rival JP Morgan Chase and Co.

From my point of view, this is the first of many spectacular events which will hit the over-leveraged financial community.

Absolutely amazing. This is a stunning collapse by a major, major player on Wall Street.

Addendum: See Credit Crisis Timeline for more detail on Bear’s timeline and the overall credit crisis.

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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