Bear Stearns collapses

| 16 March 2008 20:35

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.

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill 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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