Monday, March 17, 2008
Bear's no more
Posted by David Smith at 09:30 AM
Category: Thoughts and responses

bear.jpg

The speculation on Friday was that J.P. Morgan would buy Bear Stearns for a dollar a share. In the event they paid two, and the Fed stepped in with an emergency discount rate cut to 3.25%, lending of $30 billion to J.P. Morgan and additional provisional of liquidity to the markets. If this is America's Northern Rock, it has happened much more quickly. It is, of course, a much bigger story. The Fed's statement is here.