Quote:
Originally Posted by IbnMardhiyah
This is freaking unbelievable.
One of the world's largest investment banks has collapsed, taking its place along other major collapses in banking history such as the Barings collapse. They've lost over 98 percent of their value from what it was barely two and half weeks ago, as everyone began making a run on the bank, taking out $17 billion.
JP Morgan, one of BearStearns longtime rivals, bought out the ENTIRE FREAKING bank for about $240M, that`s barely $2/share, shares that were once worth nearly $170 each!! Their 45-story HQ building alone is worth over a billion.
I told my mom about it today morning before I left for work and she laughed and said alhamdulillaah. 
JPMorgan to buy Bear Stearns for $2 a share - U.S. business - MSNBC.com
Bloomberg.com: Worldwide
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This is pretty old news, happened late Sunday and everyone knew about it.
Lehman crashed 40% today.
What is suprising is that it was worth $170 just a year ago, $70 on Thursday, $30 on Friday and $2 on Sunday evening.
Moreoever, this particular Investment Bank had never made a loss in its history till the last quarter. It closed down two of its hedge funds dealing with subprime. However, that was not the reason it fell. The creditors refused to lend any money to the bank and demanded repayment of its obligations, which it couldnt meet. Hence...
Very sad, a lot of my friends work there.
For the uninformed, this is not a retail bank. It is an Investment and Capital Markets bank.