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| Subject: Re: and I suppose you think of a very large banking concern teetering on the verge | |
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Author: Duncan7 |
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Date Posted: 10:41:27 03/14/08 Fri In reply to: Bev 's message, "and I suppose you think of a very large banking concern teetering on the verge" on 09:57:31 03/14/08 Fri Take a pill bev. your the ones blaming one person not me. >of bankruptsy is just another case of one person . >geesh get real . > >Teetering Bear Stearns gets bailout from Federal >Reserve, JPMorgan Chase >The Associated PressPublished: March 14, 2008 > > ENEW YORK: Bear Stearns Cos., one of Wall Street's >venerable investment banks, received a bailout Friday >by the federal government and JPMorgan Chase & Co. in >a surprise, last-ditch effort to save the 86-year old >institution. > >The Federal Reserve responded swiftly to pleas from >Bear Stearns that its coffers had "significantly >deteriorated" within a 24-hour period. Central bankers >backed an arrangement to bolster the company, and >stood ready to provide extra resources to combat a >credit crisis that now threatens one of America's >biggest financial institutions. > >Bear Stearns, the nation's fifth-largest investment >bank, made its fortune dealing in opaque >mortgage-backed securities — a strategy that might be >its undoing amid the worst housing slump in a quarter >century. The bank has racked up $2.75 billion in >write-downs since last year, and faced a possible >collapse without some kind of lifeline. > >Bear Stearns lost half of its value within 30 minutes >of the market open, before clawing back a bit to be >down 41 percent, or $23.51, at $33.49 by midday. The >news rattled investors, pushing the Dow Jones >industrial average down about 150 points. > >JPMorgan Chase, the nation's third-largest bank, >agreed to pump more money into Bear Stearns to keep it >in business, but did not divulge how much it was >spending. Top executives from both companies were in >talks, and were even considering the outright sale of >Bear Stearns to JPMorgan, according to a person >familiar with the talks who was not authorized to >speak on the record. > >find permanent strategic alternatives to alleviate >their Today in Americas >A mother's unconventional life is reflected within >ObamaSpitzer's use of campaign funds now under >scrutinyWith eye on campaigns, Congress passes a >budgetBear Stearns said in a statement that it is >working with JPMorgan Chase to cash problems. > >JPMorgan Chase — which has been hurt far less by the >mortgage morass than other investment banks — is >providing secured funding to Bear Stearns for 28 days, >backstopped by the Federal Reserve Bank of New York. >Bear Stearns and the Fed approached JPMorgan Chase >about the financing and a potential deal, according to >the person familiar with the talks. > >Rumors have persisted throughout the week that Bear >Stearns was facing major cash flow problems, but the >investment bank's chief executive initially denied >those rumors. > >"Bear Stearns has been the subject of a multitude of >market rumors regarding our liquidity," the bank's >president and chief executive, Alan Schwartz, said in >a statement Friday. "Amidst this market chatter, our >liquidity position in the last 24 hours had >significantly deteriorated." > >In a memo sent to employees, Schwartz said the >temporary financing would allow the company to "get >back to business as usual." > >The company has struggled since the middle of last >year because of the fallout in the mortgage and credit >markets. Last summer, two hedge funds worth billions >of dollars managed by Bear Stearns collapsed because >of bad bets on securities backed by subprime mortgages >— loans given to customers with poor credit history. > >JPMorgan Chase said the financing would not expose its >company to any material risk, though its shares >dropped 1.4 percent, or 53 cents to $37.58. > >___ > >AP Business Writers Madlen Read and Joe Bel Bruno in >New York and Martin Crutsinger in Washington >contributed to this report. > > Terms of Use [ Next Thread | Previous Thread | Next Message | Previous Message ] |
