Bear Stearns rattles the market
Bear Stearns plunges 50% in opening minutes and rattles the market. Rumors have rebounded across the country that the "Bear" was dying.
The company (Bear Stearns) has struggled since the middle of 2007 due to 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.It appears that JP Morgan Chase is using part of the new FED 28 day, $200 Billion credit line to keep Bear Stearns afloat.
Posted by movermike on
Friday March 14, 2008 at 8:24am
