CHRONOLOGY: The decline and fall of Bear Stearns

NEW YORK (Reuters) - Alan Schwartz, chief executive of Bear Stearns Cos, found himself in big trouble in mid-March.

The company's coffers were draining fast. Customers were leaving in droves and banks were reluctant to trade with what used to be the fifth-largest U.S. investment bank.

JPMorgan Chase & Co's Jamie Dimon ultimately agreed to buy the company at a deep discount, with some nudging by the U.S. Federal Reserve.

In testimony before a Senate Committee on Thursday, Dimon, Schwartz, Federal Reserve Chairman Ben Bernanke, New York Fed President Timothy Geithner and other senior banking and government officials described the events leading up to JPMorgan Chase's March 16 offer, and the aftermath:

--Early in the week of March 10th:

Rumors swirl around Wall Street that European firms have suspended fix income trading with Bear Stearns. U.S. traders begin to stop trading with Bear, hedge funds pull money from prime brokerage accounts, money market funds reduce investment in short-term Bear issued debt. Bear suffers a cash crunch.

--Thursday March 13th:

Bear shares fall more than 7 percent to $57 even as the Standard & Poor's 500 index rises 0.5 percent

Bear calls JPMorgan, its clearing bank, to warn that it might not have enough cash to meet its obligations on Friday and needs emergency help. It also calls the Securities and Exchange Commission and the New York Fed. JPMorgan calls the NY Fed and learns that the Fed already knows situation.

In an evening conference call among the New York Fed, Securities and Exchange Commission, the Fed Board of Governors and the U.S. Treasury, the SEC says Bear Stearns might file for bankruptcy the next morning. The SEC was prepared to spend the evening talking to Bear Stearns about what kind of bankruptcy filing was appropriate.

--Thursday March 13, overnight:

A team from the Fed goes to Bear Stearns headquarters to look at its books. Officials from the Fed in New York and Washington discuss Bear's options and how the damage of its collapse could be contained.

--Friday March 14, 5 A.M.:

The New York Fed, the Fed Board of Governors and Treasury hold a conference call to discuss options. They decide to issue an overnight non-recourse loan to JPMorgan so the bank can then loan money to Bear Stearns. The loan is intended to get Bear Stearns through to the weekend while the companies and government officials explore Bear Stearns' options and find ways to contain any damage.

--Friday March 14th:

Bear Shares fall 46 percent to $30.85, while the S&P 500 drops 2 percent to 1,288.