Bear Stearns executives had heard rumors that some of the firm’s big clients — including Citadel Investment Group, a powerful Chicago hedge fund — had made big bets that Bear Stearns’s shares would fall. Paulson and Geithner wanted a deal to sell Bear Stearns in place by early Sunday evening when Asian markets opened for business. Morgan sent Bear Stearns a rough draft of a merger plan with the share price left blank. A large team from the law firm Cadwalader, Wickersham & Taft was already in the building, preparing for a potential Chapter 11 filing, which technically would allow Bear Stearns time to work out its problems with creditors. Morgan picked up prized clients, talented Bear Stearns employees and a sleek new building at a bargain price, but now faces at least $9 billion in liabilities and the chore of integrating two wildly different cultures. read more