JPMorgan, Federal Reserve move to rescue Bear Stearns


Bear Stearns shares fell more than 50% in trading on the New York Stock Exchange this morning following news that JPMorgan Chase and the New York Federal Reserve had agreed to provide the firm with an emergency infusion of capital.

The fifth largest U.S. securities firm, Bear Stearns had previously denied that it was having difficulty accessing capital, but today said that its position had “significantly deteriorated.”

The firm announced this morning that it had reached an agreement with JPMorgan Chase to provide a secured loan facility for an initial period of up to 28 days allowing Bear