NEW YORK (AP) — Bear Stearns Cos.' profit plunged 79 percent in the fiscal first quarter that ended just two weeks before speculation about a liquidity crisis forced its sale to JPMorgan Chase.

The nation's fifth-largest investment bank posted results just shy of Wall Street projections. Earnings for the quarter ended February 29 showed Bear Stearns was able to stay profitable as the credit crisis roiled on.

That supports Bear Stearns chief executive Alan Schwartz's assertion in early March that the investment bank's books were in order despite rumours to the contrary. However, speculation about possible financial constraints ultimately caused a crisis of confidence in the bank — and the Federal Reserve orchestrated its fire sale to JPMorgan on March 17.

The company posted a profit of $110 million, or 86 cents per share, down from $548 million, or $3.82 per share, a year earlier. Revenue fell to $1.48 billion from $2.48 billion a year ago.

The investment bank did not disclose anything about how its business is doing so far during the second quarter. However, on Friday the bank said in another regulatory filing that assets under management have shrunk 20 percent since the end of November, and stock and fixed-income trading has plummeted to "well less" than half of activity levels in 2007 and the first quarter of this year.

Bear Stearns also said it faces a rapid loss of trading partners and customers and may be forced to file for bankruptcy protection and liquidate its assets if the company's deal to sell itself to JPMorgan does not close. With the bank's stock trading at about $30, JPMorgan stepped in with a $2 per share offer that was later raised to $10.