Quote:
Originally Posted by bkkandrew  Looks like Bear Stearns will pip all-comers to the post in the race to be the first to go bust! FT Alphaville » Blog Archive » This Bear market This Bear market
The Bear rumours are back. As in Bear Stearns - stock down 12 per cent in New York on Thursday, while the five year CDS has gapped 120bp to 700bp. All sorts of uncorroborated rumours are flying. |
And so it passes...
Bear Stearns | Stripped Bear | Economist.com
Bear Stearns
Stripped Bear
Mar 14th 2008 | NEW YORK
From Economist.com
Rescuing a Wall Street bank
AP
A CENTURY after John Pierpont Morgan bailed out Wall Street, his bank is at it again. In a dramatic move on Friday March 14th, the Federal Reserve Bank of New York and JPMorgan Chase made emergency funding available to Bear Stearns after other market players lost confidence in the beleaguered investment bank as a trading partner. As the credit crunch has deepened and broadened, the worst fear of many on Wall Street has been the collapse or forced rescue of a big bank or broker. That moment is now upon them.
JPMorgan Chase is Bear’s clearing bank and will act as a conduit for Fed funding. In a special vote, the central bank’s governors chose to allow JP Morgan Chase to bring collateral from Bear, including mortgage assets, to the Fed discount window in return for 28-day loans. Bear does not have direct access to the window because it is not a depository institution. The Fed has agreed not to hold JPMorgan Chase liable for any losses on the collateral posted. The central bank has resorted to such an arrangement only twice before, in the depression of the 1930s and in the 1960s.
...Cont...
And, who next? My money is on Lehmen Brothers or Citigroup to go bust. UK-wise Alliance and Leicester, Bradford and Bingley, HBOS and Barclays look like the betting-man's candidate...
Anyone still hold accounts with them?
