Bear Stumbles Sunday, March 16, 2008
Posted by croatz in capital markets.Tags: bear stearns, financial, market, panic
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Within the last hour there have been monumental developments in the American Financial System: Bear Stearns Co. was acquired by the Federal Reserve via JPMorgan for $2/share. Yes, that’s correct the FED will act as the executor of Bear’s assets in order to ensure an orderly unwinding. At least that’s what they are hoping for. The implications to rest of the banking system are huge – the true value of mortgage assets in the current market is nothing.
Will the contagion spread?
