With the possibility of a full-scale market collapse, the Federal Reserve stepped in to save the once leading global investment bank Bear Stearns by extending a $30 billion credit line to rival JPMorgan to buy out the firm for nearly 1% of its value.
Bear's breakdown could be seen as a management miscalculation after a year of announcing bad quarter after quarter, staff layoffs, and a CEO switch-off, thereby fueling rumors.
But ultimately, the nation's fifth-largest investment firm can find much ...