Bear Stearns chairman James Cayne apologized to employees and investors today for the demise of the 85-year-old investment bank, as shareholders voted to sell the company to JPMorgan Chase for less than $10 a share.
In a five-minute meeting at Bear's Manhattan headquarters, Mr Cayne expressed regret and said a market "hurricane" brought down the bank, according to those in attendance.
The press was excluded from the session, which attracted about 400 shareholders, many of them employees whose personal wealth was gutted by the collapse of Bear's stock price.
"I personally apologize," Mr Cayne said, according to shareholders who attended the meeting. "Words can't describe the feelings that I feel."
Mr Cayne, speaking publicly for the first time since the firm's collapse, surprised many in the audience with his remarks. Several shareholders said Mr Cayne, who is 74, appeared thin and drawn.
"He said he was sorry for what happened, but he also didn't apologize for his actions ... He said they ran into a hurricane," said Arthur Ulrich, a elderly man who lost $3,000 on his Bear stock. Mr Ulrich said Mr Cayne looked "rather disheveled."
JPMorgan after the meeting said the $1.5 billion acquisition of Bear would be completed tomorrow. It said the deal was approved by 84 percent of the shares that were voted today.
Under the deal, Bear stockholders will receive 0.21753 share of JPMorgan stock for each Bear share. Based on yesterday's closing price, the deal values Bear at $9.32 a share.
JPMorgan shares were up 87 cents, or about 2 percent, to $43.74 in afternoon trading today.