Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
With JP Morgan's Better Bear Offer, Deal (Probably) On
By
Jen Chung
Published Mar 25, 2008
Modified Mar 25, 2008
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
By
Jen Chung
Published Mar 25, 2008
Modified Mar 25, 2008
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Photograph of Bear Stearns' headquarters (center) and JP Morgan (right) by Mark Lennihan/AP
With JP Morgan now offering $1.2 billion for troubled Bear Stearns, it's expected the deal will close on April 8. JP Morgan needed 50% of Bear Stearns shareholder approval, and the new $10/share price would give them 45% yes votes (5% is expected from bondholders); an analyst told USA Today the revised deal "virtually guarantees a yes vote at $10 per share, vs. an almost certain no vote at $2."
The Federal Reserve has given its blessing to the higher deal as well as changed its involvement. Originally, the Fed would have assume $30 billion of Bear's potential losses, but now it will "provide financing for $29 billion of Bear's most illiquid assets, with JPMorgan backing the first $1 billion of potential losses." But, as Dealbreaker points out, some are now calling this a bailout.
In spite of the more expensive price, JP Morgan CEO Jamie Dimon is still getting credit for salvaging the deal, even while paying almost a billion more. Analyst Jeffrey Harte told Bloomberg News, "When the dust settles, this will be viewed as a good transaction for JPMorgan.''
Tagged
bear stearns
business
deal
economy
federal reserve
jp morgan
stock market
wall street
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Mamdani names re-entry specialist as chair of Rikers oversight board
Christopher Watler will help the department that a federal monitor says remains in crisis.
By
Ryan Kost
Published Oct 6, 2026 at 3:52 p.m. ET
NYC weighs expanding upstate reservoir following drought
The Delaware River Basin Commission is evaluating options to increase water storage, including expanding a reservoir in New York City.
By
Rosemary Misdary
News
NYC weighs expanding upstate reservoir following drought
The Delaware River Basin Commission is evaluating options to increase water storage, including expanding a reservoir in New York City.
By
Rosemary Misdary
Legionella found in Staten Island building's water system after 2 positive cases
By
Catalina Gonella
Legal 'loophole' helps NY Gov. Kathy Hochul, Bruce Blakeman raise millions
By
Jon Campbell
Police identify 2 men wanted for stabbing an off-duty NYPD officer
By
Ben Feuerherd
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .