JP Morgan Chase to buy Bear StearnsWhile President Bush keeps trying to playdown America's economic woes and cable news is insisting that Reverend Jeremiah Wright will sink Barack's candidacy, JP Morgan Chase is making some interesting moves. The financial industry giant has decided to will acquire rival Bear Stearns for $2 a share in a move aimed at averting spreading panic in the financial markets over tightening credit.
JP Morgan says the all-stock deal has received the required approvals from the federal government and the Federal Reserve. The Fed will provide special financing to JPMorgan Chase in connection with the deal. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets. For details of the deal, check out the NY Times.
Isn't is interesting how the federal government is not trying to "bail out" those most in need, while it's a whole different issue when fat cats screw up and need to "hooked up." Something tells me the big boys cut a deal on this under the guise of business just doing what business does. Man, I'm starting to feel like a serious conspiracy theorist.
JP Morgan says the all-stock deal has received the required approvals from the federal government and the Federal Reserve. The Fed will provide special financing to JPMorgan Chase in connection with the deal. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets. For details of the deal, check out the NY Times.Isn't is interesting how the federal government is not trying to "bail out" those most in need, while it's a whole different issue when fat cats screw up and need to "hooked up." Something tells me the big boys cut a deal on this under the guise of business just doing what business does. Man, I'm starting to feel like a serious conspiracy theorist.