At least one investor believes Bankruptcy is a better option for Bear Stearns than the $2 per share offer by JP Morgan.

From CNN Money

Here’s what Nye Lavalle, a private investor, investor and consumer advocate, in Atlanta, writes:

My recommendation and our vote of our shares will be to turn down the proposal and force a bankruptcy liquidation. Now why, some may ask, would we prefer bankruptcy?

Well, since many of Bear’s ABS/MBS deals were really financing of receivables and not "true sales," the bankruptcy system, trustees, and courts could very well seek the return of those assets back to BSC. Regardless of the outcome, there is and will be litigation. So, the best forum with the most advantageous laws would be the Federal Bankruptcy Court for Bear shareholders, investors, employee pension funds etc…

However, the downside, is that the house of cards and black box alchemy tools used by many of Bear’s partners, counter-parties, trusts etc…will be open for all to see. Thus, those harmed could hold the real parties responsible for the collapse. The true and real value of Bear can be decided whether it is $1, $2, $ 6, or $80.