JPMorgan, the third largest bank holding company in the country at the time, was the most natural candidate to buy Bear, because it was Bear’s clearing bank, served as an intermediary between Bear and its repo lenders, and was thus considerably more familiar with Bear’s holdings than any other potential suitor. Only JPMorgan could credibly review Bear’s assets and make a bid before Asian markets opened on Sunday, a process which importantly included guaranteeing Bear’s trading book. However, JPMorgan was not willing to proceed if it meant having to take over Bear’s $35 billion mortgage
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