Case ID: 309001     Solution ID: 21166     Words: 1349 Price $ 45

The Tip of the Iceberg JP Morgan and Bear Stearns A Case Solution

Case Solution

Bear Stearns & Co. blazed through about the greater part of its $18 billion in real money stores amid the week of March 10, 2008, and a phenomenal procurement of liquidity backing from the Federal Reserve on Friday March 13 was lacking to turn around the decrease in Bear's condition. Central bank Chairman Benjamin Bernanke, Treasury Secretary Henry Paulson and New York Fed President Timothy Geithner were resolved to constraining the effect of Bear's issues on the more extensive money related framework. James "Jamie" Dimon, Morgan's Chairman and CEO, was in incessant contact with these controllers throughout the few days of March 14-16, arranging conceivable situations for the salvage of Bear, without which Bear would be constrained it to look for chapter 11 insurance when markets opened on Monday. Late on Sunday evening, March 16, Bear's board acknowledged Morgan's offer to buy Bear for $2 per offer, an offer that would not have been made without huge government help. Hope the Bear salvage would help deflect the broad spread of harm into the bigger budgetary world that numerous policymakers saw as prone to take after the disappointment of a noteworthy speculation bank. This case inspects an original occasion in the money related and financial emergency that started in the late spring of 2007, and gives foundation to better comprehension the full extent of the emergency as it was uncovered amid the mid year and fall of 2008. It was composed to address two arrangements of issues. In the first place, it gives the chance to comprehend the corporate money issues of capital and liquidity, and of firm valuation. Second, the case takes into account the investigation of parts of an association's inward and outside administration, and additionally the difficulties of exploring through an emergency when confronted with convincing weights from contending partners.

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Questions Covered

1. Evaluate the mechanisms use to manage JPMC and how they enhanced or impeded its position as the pbank best positioned to buy Bear.

2. From a commercial perspective, what are the pros and cons for JPMC buying Bear?

3. What responsibility does Dimon have to the financial ―system‖?

4. What is the social purpose of an audit, and what categories of opinion might an auditor express?

5. In the contemporary economic environment, what specific factors inhibit good audits?

6. What are the strengths and limitations of the remedies for the audit environment Bazerman, et. al. propose?

7. Reflecting on the arguments of Hall, et al in The Accountability Lens, how do you describe and evaluate the ―accountability environment‖ in your workplace?