In the News: Shareholders Approve Bear Stearns Sale

Bear Stearns shareholders have approved the investment bank’s sale to rival JPMorgan Chase, finalizing the $2.2 billion buyout of the bank after heavy wagers on subprime mortgages made it the largest corporate casualty of the global credit crisis. The widely anticipated “yes” vote means the acquisition will take place on May 30. Bear CEO James Cayne, who presided over the vote, apologized for the turmoil and urged shareholders “not to believe what you see in the press.” JPMorgan Chase agreed to acquire Bear two months ago after a $29 billion loan from the Federal Reserve had eased concerns over managing losses from Bear’s mortgage-backed securities.

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