For Bear Stearns Workers, Reality Hits Home

Numerous Bear employees also expressed anger with the Federal Reserve, which has approved the deal and is helping to finance it.

They blame the Fed for pushing Bear into a fire sale without allowing the investment bank the chance to borrow money directly from the Fed, which might have eased its liquidity crunch.

Bear nearly collapsed as large subprime mortgage losses and falling confidence in the company prompted a run on the bank.

Some of the bank's staffers are hoping Bear's top shareholder, British tycoon Joseph Lewis, may still be able to miraculously broker another offer.

"There's still some hope that someone will come in with a higher offer," said one veteran employee, who has been at the company more than 15 years. "Everybody's waiting to see what Lewis does."

While the hope of a higher offer buoyed Bear shares on Monday, the speculation is losing steam. Bear shares fell 4.4 percent to $10.75 in afternoon trading Tuesday.

But the 15-year Bear veteran acknowledged that employees have little leverage at this point.

"They (the employees) will probably vote it down, but they probably don't have enough votes," he said.

Copyright 2008 Reuters. Click for restrictions.

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