Friday, March 14, 2008

Bear Stearns Bail Out

This may be the end of the line for Bear Stearns. The hugely independent, and well respected broker-dealer may not be able to survive its subprime problems, according to the New York Times. JPMorgan has stepped in with short term financing to solve the immediate problem, but immediate means 28 days. Hardly a long term solution.

Bear is fighting rumors pretty hard, and it appears that this might simply be a run on the bank, without true substance. But with the stock down 50% today alone, it is certainly looking bleak.

We wish Bear Stearns well, it has contributed greatly to our country's financial markets over the decades, and hope that they do in fact survive.
Post a Comment