Bear Stearns was one of the oldest and most respected Wall Street banks. It had been viewed as a blue chip financial stock, and was a part of the portfolios of many conservative investors. Unfortunately, it appears that Bear Stearns shareholders may have been deceived by the company, and in just a few days lost almost all of their equity.
The decline of Bear Stearns stock price and subsequent sale is one of the sharpest declines for a blue chip stock ever. On March, 12, 2008 the stock was trading at $61.58, and just four days later Bear Stearns, with apparently no other options but bankruptcy, agreed to be purchased for $2.00 per share.
Rumors about Bear Stearns tenous financial situation began to surface months ago, but really began to gain momentum in the last two weeks. With these rumors affecting the price of the stock and probably the confidence of the company's customers, Chief Executive Officer Alan Schwart, appeared on television on Wednesday afternoon to reassure the markets that the firm was stable. Just two days, later Bear Stearns announced that it was being bailed out by JP Morgan Chase and the federal government.
"The past week has been an incredibly difficult time for Bear Stearns," said Alan Schwartz, president and CEO of Bear Stearns. "This transaction represents the best outcome for all of our constituencies based upon the current circumstances." This incredible statement was made after the Bear Stearns agreed to be acquired for a mere $2.00 per share by JP Morgan Chase. Again, just days before Mr Schwartz appeared on national television, and told investors that the company was stable.
If you are a current or former Bear Stearns shareholder, you may have valuable legal rights. Contact Mark & Associates, P.C. today to have a securities fraud attorney evaluate your case for absolutely free. To request a free case consultation, simply complete the inquiry form on this page or call 1-866-507-4448.
Get the Flash Player to see this player.
Click here to listen to other Mark & Associates P.C. podcasts
Contact us today for an immediate and confidential review of your case.
Copyright ©2008 Mark & Associates, P.C. | All Rights Reserved | ATTORNEY ADVERTISING
Prior Results Do Not Guarantee a Similar Outcome. Legal Disclaimer Privacy Policy
Mark & Associates, P.C. maintains offices in Massachusetts and New York, and works with attorneys throughout the country.
Please note that, by contacting Mark & Associates, P.C., your potential case may be referred to an attorney within our nationwide network.