Chapters 2-3 Summary and Analysis

Chapter Two opens as Hank Paulson, the US Secretary of the Treasury, was busily phoning staff and former colleagues in the finance industry. Paulson was angry when he received a call from Joe Dimon at JP Morgan, who had agreed to buy Bear Stearns, telling him that Morgan had upped its offer to $10 a share from an initial offer of $2 a share. Paulson had played a behind the scenes role in setting the initial low price, not wanting to be seen as trying to prop up the failing company. Paulson also understood, however, that Dimon's offer of $10 was intended to address the shock to the market when the $2 price had been announced. Meanwhile, public and political sentiment were turning against what was widely seen as a "bailout" of the failing Bear Stearns with taxpayer money.

Sorkin provides a summary...