A week ago everything was binary. If Bear Stearns went under there was a huge systemic risk for financial markets. If not, order could be restored. Meanwhile, if Bear imploded, its shares were worthless. Under the rescue terms from JPMorgan and the Federal Reserve, however, they have significant value. Indeed, now, as a solvent business, Bear is worth a lot more than the $2 a share imposed on it during a shotgun wedding with JPMorgan. Once markets returned from the brink, it also became clear that JPMorgan, as it rushed to sign the deal, did not tie up all the loose ends. And by engineering such a lowball offer, JPMorgan gave Bear shareholders a credible argument that they had nothing to lose by voting the offer down.

JPMorgan blinked. Quintupling its offer still leaves Bear cheap. And JPMorgan has done its legal work better this time – with a clear right to buy 39.5 per cent of Bear for $10 a share. But that will face legal challenges and, now that investors have sensed weakness, they will try to push the price yet higher.