On a constant basis we hear about companies that go through restructurings, buyouts, or have a significant position taken in them by private equity groups.  More often than not, these actions represent a group of “faceless” shareholders in which there is no personal connection with.  However, in the recent case of the Bear Stearns debable, one-third of the company was owned by employees.  Which means that from the 52-week high of the last year to the recent $2.00 per share “rescue”by J.P. Morgan, employees lost 97% of their value.  Folks that have worked for decades in the firm, have invested in that firm, and were guided by management in their commitments.  While there has been some rebound in the price and modification in the buyout, employees stand to lose a substantial amount.  Recalling the memory of the Enron scandal and the bath employees took, it wouldn’t be surprising to see additional regulation over how employee assets are managed.  Talk about a life-changing lesson in diversification…
Read more in the article:  http://www.cfo.com/article.cfm/10905288?f=alerts