Bear Stearns Purchased by JPM for $2/Share - Market Volatility Expected
Bear Stearns, the fifth largest investment bank, was bought out over the weekend by JP Morgan for $2/share, which is much lower than the stock closed on Friday. This is due to the liquidity crisis at the firm that was revealed late last week.
In response, the Federal Reserve and JP Morgan worked out a bailout package for Bear Stearns that was revealed late Sunday night. In addition, the Fed cut a key benchmark interest rate by 0.25%
The markets are expected to be volatile today, as fears of a financial contagion persist.
We will write more about the situation later today.
In response, the Federal Reserve and JP Morgan worked out a bailout package for Bear Stearns that was revealed late Sunday night. In addition, the Fed cut a key benchmark interest rate by 0.25%
The markets are expected to be volatile today, as fears of a financial contagion persist.
We will write more about the situation later today.
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