JP Morgan Chase and the Federal Reserve Bank of New York bailed out the Bear Sterns investment after the bank suffered a run today. The 85 year old firm has 28 days to fix it's finances or sell out. As Bear Sterns stocks fell 47 percent, there was fear that more banks may suffer the same fate as Bear Sterns credit crisis.
The Federal Reserve found it necessary to bail out Bear Sterns investment bank since it is a major player on Wall Street of borrowing and lending billions, fueling the everyday business of capitalism. A sudden collapse would shake the entire system and bring the markets to a screeching halt.
Lehman Brothers, another Wall Street firm secured loans from other banks to insure that it will not suffer a great lost after it's stocks fell 15 percent.
Friday, March 14, 2008
Banks Get Bailed Out
Posted by Angie Meredith at 6:45 PM
Labels: Economic news