[GovernmentShrinker]

Frankly the $2/share purchase price, and even then only with a guaranteed loan from the Fed, says to me that:

1) The real market price of Bear was $0 — nobody wanted it, period; and

2) The Fed put really, really heavy pressure on JPM to buy it. Not force, but really, really heavy pressure, while still letting JPM set the price. The only reason JPM didn’t do an ING-Barings style purchase — i.e. a token $1 paid for the whole company — was for just the reason you stated: it would have spooked the markets way too much and left JPM wishing it had paid $2/share. However, I suspect JPM thought this all through, and decided that paying $30+/share actually would not bring them out ahead.

[stockstrader]

The real market price of Bear was $0 — nobody wanted it, period;

Just think, less than a year ago, BSC was $159/sh. Amazing.

[GregoryFul]

BSC market value on Friday at $30/share was $4 billion. JPM has 688 billion in long term investments, probably lots of stock subject to market prices. A 1.8% down move (now indicated in futures) results in a $12 billion paper loss for JPM, and if the crash results in a long term decline going forward, could result in a 10-20% move down - seems like a dumb move to me. In particular, since many believe that a bottom had been near, and had been been tested, and market was ready to shoot up in response to the stimulus, what a perfect opportunity to make lots of money by priming the pump. Instead, these fools short circuit the game and doom the market to another down leg - and they will pay dearly.

On the other hand, maybe JPM was $688 billion on the short side....