behind Bear Stearns , '' said Jamie Dimon , chairman and chief executive of JPMorgan . `` Bear Stearns clients and counterparties should feel secure that JPMorgan is guaranteeing ... risk , '' he continued . The fast-track deal is expected to close by the end of June , the statement said . Bear Stearns was on the brink of financial collapse Friday when JPMorgan and the Federal Reserve Bank of New York said they would provide the brokerage a short-term loan . Bear was dealing with a classic `` run on the bank . '' The firm 's short-term creditors refused to lend the firm any more money and simultaneously demanded repayment of outstanding debt . The one-two punch overwhelmed Bear 's cash position . With the global credit crisis worsening , the Fed -- along with officials from the Treasury Department and other government agencies -- took the dramatic action to prevent the investment bank from going under and igniting widespread panic through the financial markets . Watch a discussion on the impact on global markets '' Treasury Secretary Henry Paulson said on Sunday that talks about how to rescue Bear had continued throughout the weekend . He
NEW YORK -LRB- CNNMoney.com -RRB- -- JPMorgan Chase & Co. said Sunday that it is buying troubled Wall Street firm Bear Stearns , amid deepening fears that Bear 's demise could have sent shockwaves across already shaky financial markets . The deal to buy Bear Stearns is worth an estimated $ 236 million . The deal values Bear Stearns at $ 236 million , or just $ 2 a share . Shares had closed at $ 30 on Friday , down 47 percent that day . `` Effective immediately , JPMorgan Chase is guaranteeing the trading obligations of Bear Stearns and its subsidiaries and is providing management oversight for its operations , '' said a statement released Sunday by JPMorgan . Shareholders must approve the deal , which is expected to close by the end of June . JPMorgan is taking immediate responsibility for Bear 's trading obligations and assuming `` management oversight '' of the firm 's operations . The deal has already been approved by the Federal Reserve and other regulators , according to the statement . The Fed is providing special emergency financing for up to $ 30 billion in Bear Stearns assets . `` JPMorgan stands