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It's described as a modern day run on a bank. In the days leading up to the fire sale of investment bank firm Bear Stearns, the company was the topic of rumors, speculation and fear that led the venerable Wall Street firm to the brink of ruin. Bear Stearns CEO Alan Schwartz, testified about those uncertain days before the Senate Banking Committee. SOUNDBITE: Bear Stearns CEO Alan Schwartz, saying (English): "Due to the stressed conditions of the credit markets as a whole and the unprecedented speed with which rumors and speculation travel and echo through the modern financial media environment, the rumor and speculation ultimately became a self fulfilling prophesy. Because of the rumors and conjecture, customers, counterparts and lenders began exercising caution their dealings with us and during the later part of the week refused to do business with Bear Stearns." Schwartz said that left few options. SOUNDBITE: Bear Stearns CEO Alan Schwartz, saying (English): "The choices we faced that Friday night were stark-- to find a party willing to acquire Bear Stearns by Sunday night or face what my advisers told me that we could face a bankruptcy filing by Monday, wiping out shareholders, creditors and all of our employees. " The Federal Reserve helped seal the deal, committing $29 billion in taxpayer money to back assets as part of an agreement for JPMorgan Chase to buy the stricken firm at a cut rate price. Fed Chairman Ben Bernanke said it was no bailout. SOUNDBITE: Fed Chairman Ben Bernanke said it was no bailout, saying (English): "I would like make a comment on the idea that we bailed out Bear Stearns. Bear Stearns did not fare very well. Shareholders took severe losses, the company lost its independence. Many employees don't think it is a situation that any form would chose ego endure." But the Bear Stearns rescue, orchestrated in close consultation with the Treasury Department, prompted tough questions from members of Congress. New York Senator Charles Schumer in opening remarks, summed up the sentiments of many. SOUNDBITE: New York Senator Charles Schumer, saying (English): "The response was necessary but ad hoc...Everyone agrees that Bear Stearns was staring into the abyss what about home owners?" The hearing comes as lawmakers grapple with how to modernize a patchwork of American banking regulations, many of which date back to the Great Depression of the 1930s. Deborah Lutterbeck, Reuters COMPANIES MENTIONED: SYMBOLS: