Posted on 03/14/2008
at 01:17 PM
Category: Business
Posted by Tim
"US bank Bear Stearns has got emergency funding, in a move that raises fears that one of Wall Street's biggest names is on the verge of collapsing. JP Morgan Chase will provide the money to Bear Stearns for 28 days with the Federal Reserve of New York's backing. JP Morgan is also trying to get long-term financing for Bear Stearns.
Bear Stearns' problems stem from the global credit crunch and the worry is that other lenders may also have major funding problems, analysts said. Bear Stearns is Wall Street's fifth largest investment bank, and has been at the centre of the US mortgage debt crisis. Recently, speculation had intensified that it was struggling to fund its daily business."
Stocks are getting hurt bad today and this is one of the reasons.
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